Caribbean Trade Law and Development

Tag: Caribbean

  • Re-invigorating CARICOM–Canada Trade in a Shifting Global Order

    Re-invigorating CARICOM–Canada Trade in a Shifting Global Order

    Alicia Nicholls

    On May 5, 2025 I had the opportunity and pleasure of being a panelist on the Canada Caribbean Institute (CCI)’s webinar entitled “Canada-CARICOM Relations in the Trump Era”.  In this blog post, I share and expand on some of the reflections I made at this session around the theme of reinvigorating CARICOM-Canada trade in this current global dispensation.

    While the US remains an important partner for Caribbean Community (CARICOM) countries, it is well understood in international trade and development circles that overreliance on any single market or partner increases exposure to geopolitical, economic and other shocks emanating in that partner. For the small island developing states (SIDS) of CARICOM whose economies are already highly open and vulnerable, diversifying trade and economic relationships is not a luxury, but a necessity. Diversification entails not only expanding south-south ties with Africa, China, and Latin America, as CARICOM countries have increasingly been doing, but also strengthening partnerships with long-standing allies like Canada. In this storm of uncertainty, Canada stands out as a stable and values-aligned safe harbour—a reality reinforced by the presence of a sizable Caribbean diaspora in Canada and a not insignificant Canadian diaspora presence here in the Caribbean, serving as bridges between us.

    The foundations of the Canada-CARICOM trading relationship stretch back to the colonial era when trade between the British West Indies and British North America (now Canada) involved an exchange of sugar, molasses, and rum for Canadian fish, lumber, and flour. That historical trade has evolved in structure and content, but the essence of mutual respect and cooperation remains. Today, our trade is anchored by the Canada Caribbean Trade Agreement (CARIBCAN)—a non-reciprocal preferential trade arrangement established in 1986 under which Canada grants unilateral duty-free access to eligible goods from Commonwealth Caribbean countries and territories. This covers most CARICOM countries’ exports to Canada, excluding goods in Harmonised System (HS) chapters 50-65 (mainly textile products) and goods subject to most favoured nation (MFN) tariffs of over 35%.

    CARIBCAN beneficiary countries or territories are Anguilla, Antigua & Barbuda, Bahamas, Barbados, Belize, Bermuda, The BVI, the Cayman Islands, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kitts & Nevis, St Lucia, St. Vincent & the Grenadines, Trinidad & Tobago and the Turks and Caicos Islands. Notably, CARICOM member States Suriname and Haiti are not CARIBCAN beneficiaries.

    The arrangement is unilateral which means that beneficiary countries and territories are not required to reciprocate by lowering duties on Canadian imports, reflecting the agreement’s original development-oriented rationale: to enhance the region’s export capacity, promote economic development, and stimulate regional integration. The arrangement is subject to a World Trade Organisation (WTO) waiver, which was most recently extended in 2023 for another ten year period (until 2033).

    Despite this favourable arrangement, CARICOM’s trade performance with Canada has seen signs of stagnation. According to data gleaned from ITC’s Market Access Map, bilateral trade between CARICOM and Canada was valued at just US $1.2 billion in 2024. This is relatively modest when compared to CARICOM’s trade volumes with other partners. Notably, CARICOM enjoyed a trade surplus with Canada until 2019, but that dynamic has since reversed and Canada now enjoys a surplus with the region. CARICOM countries’ margin of preference in the Canadian market has declined as Canada has concluded agreements with other partners and its tariffs have lowered. Moreover, utilization rates of CARIBCAN preferences vary significantly across countries, with some utilising the preferences for significant shares of their exports and others failing to capitalize on the access afforded. CARICOM’s share of Canadian imports has declined, from 0.17% in 2014 to just 0.09% in 2024. Conversely, Canada’s share of CARICOM’s imports also dropped from 2.5% in 2014 to 1.5% in 2024.

    Digging deeper into the data reveals more about what is being traded and where opportunities lie. CARICOM’s leading exports to Canada include gold, aluminum, methanol, rum and spirits, root crops and seafood. On the flip side, Canada exports oil, wheat, iron ores, medicines, and meats to the Caribbean. According to ITC’s Export Potential Map, there remains significant unrealized export potential—estimated at around $1.4 billion. Gold alone, in its unwrought, non-monetary form, represents a good portion of this untapped potential. There may also be scope to expand exports of products like Caribbean rum, especially as Canadian consumers seek alternatives to U.S. products, including spirits and other alcoholic beverages.

    On the services side, tourism, commercial services and transportation services form the bedrock of the Canada–CARICOM relationship. Canadian banks have a long history in the region and for Barbados, Canadian firms are the major players in its global business sector. Travel remains one of the most vital service links, with Canada emerging as the region’s second-largest source market in 2024, sending 3.3 million visitors—a 4% increase from 2023, although still below pre-pandemic figures. With Canadians traveling less frequently to the US due to geopolitical tensions between these two countries, there is real potential for the Caribbean to capture more of this outbound market through targeted marketing, improved airlift, and creative offerings such as multi-destination packages. The education link is also noteworthy. Many CARICOM nationals study at Canadian institutions, bolstering ties through Mode 2 (consumption abroad) services trade.

    In addition to bilateral trade and services, Canada and CARICOM share values that manifest in their joint positions on the multilateral stage on issues like climate action, support for the Sustainable Development Goals (SDGs), and championing on-going and badly needed reform of the rules-based multilateral trading system. As global multilateralism comes under increasing strain, these alignments become even more critical.

    Some concrete recommendations

    The 2023 Canada–CARICOM Strategic Partnership, launched at the Ottawa Summit, marked an important milestone. This framework creates a permanent mechanism for structured dialogue and coordination—a platform we must now leverage more ambitiously. There are several immediate and medium-term actions worth considering.

    First, we need to better understand and address the reasons behind the low utilization of CARIBCAN by firms in beneficiary countries and territories and ensure evidence-based interventions to remedy this. This might involve empirical research in partnership with institutions like the University of the West Indies. Technical assistance to help exporters meet rules of origin, the simplification of customs procedures, and the creation of digital trade platforms or business missions could strengthen small and medium-sized enterprise (SME) readiness. As most CARICOM countries’ exports (except those exempted from the baseline tariff) now face additional 10% tariffs in the US market where they might have entered either duty-free or reduced rates of duty under the Caribbean Basin Initative (CBI) programmes, some CARICOM exporters will be seeking alternative markets for their products and Canada’s market of 40 million people and where most CARICOM goods can enter duty-free under CARIBCAN, beckons.

    Second, the question of whether CARIBCAN should be modernized or replaced with a reciprocal but development-sensitive agreement must be considered seriously before it is up for renewal of the waiver in 2033. While negotiations for a reciprocal trade agreement began in 2007, they eventually stalled due to divergent priorities. Today’s changed global landscape may offer a window to revisit the idea, possibly with a WTO-compatible trade and development agreement better tailored to CARICOM and Canada’s current needs.

    Third, Canada and CARICOM could benefit from updating their bilateral investment treaties (BITs) to reflect contemporary standards. Most are older generation BITs which prioritise investor protection over promoting and facilitating investment for sustainable development. In the absence of the negotiation of an FTA with a comprehensive investment chapter, Canada and CARICOM countries with which it has BITs should consider renegotiating their BITs and integrating development-friendly provisions, environmental safeguards, and mechanisms that encourage responsible investment.

    Fourth, greater attention should be paid to emerging sectors like digital trade, creative industries, fintech, scientific research and development, and digital health. These are areas where Canadian and Caribbean firms can collaborate meaningfully, and where mutual capacity-building could lead to innovation and job creation. I am always reminded of and inspired by the story of Barbadian-born scientist, Dr. Juliet Daniel, who is doing significant cancer research in Canada. This shows that the possibilities do indeed exist, especially given the strong ties between many Canadian universities and The UWI here in the Caribbean.

    Fifth, Canadian tourism is on a growth trend towards its pre-pandemic levels but could be boosted not just through more aggressive marketing in Canada, but through product innovation and better coordination across the region. Multi-destination tourism packages, for instance, could offer Canadians a richer Caribbean experience while distributing tourism benefits more evenly within CARICOM.

    Finally, the new Canada–CARICOM Strategic Partnership should also be used as a platform for closer multilateral coordination, including on WTO reform to strengthen the rules-based multilateral trading system. Although the Liberal Party in Canada won the elections in the just concluded election, there is a new Prime Minister and it remains to be seen to what extent he will continue some of the work of his predecessor.

    In all of this, the Caribbean diaspora in Canada and the Canadian community in the Caribbean serve as vital bridges that can drive trade, investment, cultural exchange, and policy dialogue, and are important players and allies as we seek to strengthen this relationship.

    In a world increasingly shaped by geopolitical unpredictability and economic volatility, deepening our economic relationship with Canada is not simply a reactive response. It is a logical and strategic one. Canada is already a valued partner with shared values, historical ties and a demonstrated commitment to inclusive and sustainable development. But the current level of trade and investment does not yet reflect the true potential of this relationship. There is considerable scope for deeper growth.

    Let me thank the Canada Caribbean Institute for the great work it is doing on fomenting this relationship, including its advancement of thinking on forging deeper Canada-Caribbean ties in the backdrop of Trump 2.0, as well as some of the concrete policy recommendations it has highlighted in a recent blog post. In these headwinds of global uncertainty, we should view Canada as not just a buffer in times of crisis, but as a cornerstone in our efforts to build a more resilient, prosperous, and sustainable CARICOM. Strengthening this partnership is more than a policy option—it is a strategic imperative.

    Alicia Nicholls, B.Sc., M.Sc., LL.B. is an international trade and development specialist with over 15 years experience and is the founder of the Caribbean Trade Law and Development Blog.

  • Statement from Chair of CARICOM, Hon. Mia Amor Mottley on Impact of the Global Crises on the Caribbean

    Statement from Chair of CARICOM, Hon. Mia Amor Mottley on Impact of the Global Crises on the Caribbean

    (CARICOM Secretariat, Turkeyen, Greater Georgetown, Guyana – Friday, 4 April 2025)  –

    The transcript of the Statement from the Honourable Mia Amor Mottley, Chair of the Caribbean Community (CARICOM) on the impact of the global crises on the Caribbean.

    I speak to all our Caribbean brothers and sisters today, not as the Prime Minister of Barbados, but in my capacity as Chair of the Caribbean Community.

    Our world is in crisis. I will not sugarcoat it. These are among the most challenging of times for our region since the majority of our members gained their independence. Indeed, it is the most difficult period our world has faced since the end of World War II, 80 years ago. Our planet faces a climate catastrophe that worsens every year. We have a cost-of-living crisis that has been bedevilling us since the disruption of supply chains, when the COVID-19 Pandemic triggered the shutdown of the majority of countries.

    Misinformation, disinformation and manipulation are relevant. The mental health crisis is causing hopelessness among many of our young people, and regrettably, crime and fear are on the rise. We’re fighting wars in the Holy Land, in Europe and in Africa. Countries are distrustful of countries and neighbours are distrustful of neighbours. The international order, the international system, my friends, is in great danger of collapse, and now we are on the precipice of a global trade war.

    Our Caribbean economies are largely reliant on imports. Just go to the supermarket or visit the mall or the hardware shop or the electronic store, and you will see that most of the things there are not produced in this Region. Many of those commodities are either purchased directly from the United States of America or passed through the United States of America on their way to the Caribbean region. That, my friends, is a legacy of our colonial dependence. Together with colleague Heads of State and Heads of Government, we have been working to diversify ourselves away from this dependence.

    We’ve already started to reap some successes, especially in the field of agriculture, for example, but we still have a long way to go. As we do this work, we have to be mindful that those recent announcements that have been made in the last few days will impact us very directly as a Region and as a Caribbean people.

    We are working and will continue to work to become more self-sufficient, but I want every Caribbean man and every Caribbean woman to hear me. This trade war and the possibility of a US $1 million to $1.5 million levy on all Chinese made ships entering US harbours will mean higher prices for all of us at the corner shop, higher prices at the supermarket, higher prices at the electronic store, higher prices for us at the shop, higher prices for us at the restaurant, higher prices for us at the current dealership and beyond.

    A lot of Caribbean people will think that these things that you are seeing on television news or reading about are far away and “They don’t impact on me.” A lot of people think “I’m just a farmer”, “I’m just a schoolteacher”, or “I’m just a mechanic.” They say, “I live in Saint Lucy in Barbados”, or “I live in Portmore in Jamaica”, or Kingstown in St Vincent, or Arima in Trinidad or Basseterre in St Kitts & Nevis, or San Ignacio in Belize.

    “These problems are far away from me, and they don’t impact me.” That is what you will hear them say. But the reality, my friends, is that if you buy food, if you buy electronics, if you buy clothes, it will impact you. It will impact each of us.

    My brothers and sisters, our Caribbean economies are not very large. So, we are, and have always been, at the whims of global prices. If Europe and China and the U.S. and Canada and Mexico are all putting tariffs on each other, that is going to disrupt supply chains, that is going to raise the cost of producing everything, from the food you eat, to the clothes on your back, to the phone in your pocket, to the car you drive down the road, to the spare parts that you need for critical infrastructure. That means higher prices for all of us to pay, and sadly, yes, this will impact all of us, regardless of what any of our Caribbean governments will do.

    We could lower our tariffs to zero in CARICOM, and it will not make a lick of difference, because our economies are small and vulnerable. This crisis, my friends, will impact not only goods, but it may also have a large spillover effect on tourism. We suggest that the region takes steps to sustain the tourism industry as likely worsening conditions and many of our source markets will have negative impacts on people’s ability to travel. We call on our regional private sector and the tourism sector to come together and to work with governments to collaborate for an immediate tourism strategy to ensure that we maintain market share numbers as a region.

    My friends, I pray that I’m wrong, and I’m praying that cooler heads prevail across the world, and leaders come together in a new sense of cooperation, to look after the poor and the vulnerable people of this world, and to leave space for the middle classes to chart their lives, to allow businesses to be able to get on with what they do and to trade.

    But truly, I do not have confidence that this will happen.

    So, what must we do?

    First, we must re-engage urgently, directly, and at the highest possible level with our friends in the United States of America. There is an obvious truth which has to be confronted by both sides. That truth is that these small and microstates of the Caribbean do not, in any way or in any sector, enjoy a greater degree of financial benefit in the balance of trade than does the United States. In fact, it is because of our small size, our great vulnerability, our limited manufacturing capacity, our inability to distort trade in any way, that successive United States administrations, included, and most recently, the Reagan administration in the early 1980s went to great lengths to assist us in promoting our abilities to sell in the United States under the Caribbean Basin Initiative. We will see how these tariffs will impact on that. That spirit of cooperation largely enabled security, social stability and economic growth on America’s third border in the Caribbean, or as we have agreed as recently in our meeting with Secretary of State Rubio, what is now our collective neighbourhood.

    Secondly, we must not fight among each other for political gain. Because my dear brothers and sisters, as the old adage  goes “United, we stand and divided, we fall.”

    Thirdly, we must redouble our efforts to invest in Caribbean agricultural production and light manufacturing. The 25 by 2025 initiative, ably led by President Ali, seems too modest a target now, given all that we are confronting. We must grow our own and produce our own as much as possible. We can all make the decision to buy healthy foods at the market instead of processed foods at the supermarket.

    Fourthly, we must build our ties with Africa, Central and Latin America, and renew those ties with some of our older partners around the world, in the United Kingdom and Europe, and in Canada. We must not rely solely on one or two markets. We need to be able to sell our Caribbean goods to a wider, more stable global market.

    My brothers and sisters, in every global political and economic crisis, there is always an opportunity. If we come together, put any divisions aside, support our small businesses and small producers, we will come out of this stronger.

    To our hoteliers, our supermarkets and our people, my message is the same. Buy local and buy regional. I repeat, buy local and buy regional. The products are better, fresher and more competitive in many instances. If we work together and strengthen our own, we can ride through this crisis. We may have to confront issues of logistics and movement of goods, but we can do that too.

    To the United States, I say this simply. We are not your enemy. We are your friends. So many people in the Caribbean region have brothers and sisters, aunties, uncles, grandmothers, grandfathers, sons and daughters, God children living up in Miami or Queens or Brooklyn or New Jersey, Connecticut, Virginia, wherever. We welcome your people to our shores and give them the holidays, and for many of them, the experiences of a lifetime.

    I say simply to President Trump; our economies are not doing your economy any harm in any way. They are too small to have any negative or distorted impact on your country. So, I ask you to consider your decades-long friendship between your country and ours. And look to the Caribbean, recognizing that the family ties, yes, are strong. Let us talk, I hope, and let us work together to keep prices down for all of our people.

    My brothers and sisters, there’s trouble in our Caribbean waters, but the responsibility each and every day for much of what we do and what much of what we grow must be ours, if we take care of each other, if we support each other, if we uplift each other, and if we tap into the strength and innovation of our common Caribbean spirit, we will see this through.

    Our forefathers faced tribulations far worse than we will ever do and yes, they came through it.

    My friends, my brothers and sisters, we can make it.

    We shall make it.

    God bless our Caribbean civilization.

    Thank you.

  • Caribbean-African Trade: The Unfinished Bridge

    Caribbean-African Trade: The Unfinished Bridge

    Ashley Williams, Guest Contributor

    The Premise

    History left a fracture where a bridge should have been. The Caribbean and Africa—two regions tethered by blood, yet disconnected by trade.
    For centuries, we have exchanged culture, music, and resilience, but not commerce at scale. That was by design.

    Today, we are positioned to correct that. Not as an afterthought, not as a side conversation, but as a deliberate economic force.
    The Caribbean and Africa are two sides of the same coin—one rich in resources, the other rich in financial infrastructure and global access.

    The question is not if this bridge will be built. The question is who will control its foundation.

    The Case for Reconnection

    For decades, Caribbean nations have been locked into trade cycles dictated by former colonial powers.  Our largest exports still head to North America and Europe.
    Our tourism models remain dependent on Western economies. Even our food supply is largely imported from outside the region.

    Africa, too, has been locked into extractive economic relationships—its vast resources flowing outward, while financial control remains offshore.
    China, the EU, and the U.S. have embedded themselves as dominant players in African trade. Yet, the Caribbean is absent. Why?

    Because we have not yet moved as a collective force. But when we do, the system changes.


    Strategic Synergies: What We Bring, What They Bring

    Caribbean economies are small but agile. We are financial architects. We design offshore structures, manage global wealth, and maneuver regulatory frameworks like second nature.
    Africa, on the other hand, is  a sleeping giant—a landmass of opportunity, with raw materials, energy potential, and scale.

    The synergy is undeniable. The Caribbean is the financial brain, Africa is the industrial body.


    1. Financial Infrastructure & Alternative Investment 


    The Bahamas is a financial powerhouse—one of the world’s most recognized offshore banking hubs. Africa is experiencing a fintech revolution, leapfrogging traditional banking systems.

    – Caribbean Strength: We control regulatory frameworks, offshore finance, and structured investment models. 
    – African Strength: Digital banking, mobile finance, and large-scale investment needs. 
    – Opportunity: A Caribbean-African sovereign wealth fund that structures investments in real estate, energy, and infrastructure across both regions. 

    2. Renewable Energy & Power Independence
    Both regions suffer from high energy costs and dependency on fossil fuels. Africa has solar farms the size of cities, untapped hydroelectric power, and access to rare minerals needed for battery storage. 

    – Caribbean Strength: Expertise in solar-powered desalination, grid management, and sustainable energy policies. 
    – African Strength: Raw materials, large-scale renewable energy projects, and battery storage potential. 
    – Opportunity: Co-owned energy companies** that provide off-grid power solutions for both regions—drastically reducing reliance on external energy suppliers. 

    3. Food Security & Agricultural Trade 
    The Caribbean imports **80% of its food.  That is a liability. Africa has the land and the output to close this gap. 

    – Caribbean Strength: Trade logistics, duty-free zones, and financial structuring. 
    – African Strength: Large-scale agricultural production, natural farming conditions. 
    – Opportunity: A direct agricultural pipeline, moving fresh, organic African produce into the Caribbean food supply chain. 

    4. Real Estate & Infrastructure Development 
    Both regions have a real estate boom, but capital access remains a challenge. The Bahamas understands luxury development and foreign direct investment. Africa needs urban expansion and commercial real estate projects. 

    – Caribbean Strength: Investment-friendly real estate laws, residency incentives, and luxury market expertise. 
    – African Strength: High demand for commercial and residential expansion. 
    – Opportunity: A Caribbean-African Real Estate Fund that funnels investment capital from both regions into large-scale developments.


    Breaking the Barriers: The Playbook 

    This is not a matter of potential, but of execution. The barriers are not structural; they are psychological and logistical.

    1. Trade Agreements & Economic Alignment 
    The African Continental Free Trade Area (AfCFTA) exists. CARICOM exists. The link between the two is missing. 
    Bilateral agreements must eliminate tariffs, streamline import/export regulations, and incentivize direct Caribbean-African trade flows.

    2. Direct Shipping & Air Cargo Routes 
    Right now, Caribbean-Africa trade requires detours through Europe or the U.S. That is not sustainable. We need dedicated trade hubs in The Bahamas, Barbados, and Jamaica to serve as logistical entry points for African goods. 

    3. Digital Trade & Blockchain Integration 
    Africa leads in mobile banking. The Bahamas leads in blockchain-friendly regulation. Smart contracts, blockchain-based supply chain verification, and digital trade platforms can bypass traditional barriers and create frictionless commerce. 

    The Bahamas as the Financial Bridge 

    The Bahamas is uniquely positioned to be the Caribbean-African trade epicenter. It is one of the world’s most respected financial jurisdictions, a tax-neutral hub, and a global player in wealth management and fintech.

    What must happen next? A formalized Caribbean-African Investment Forum. A platform that: 

    – Connects investors with African-Caribbean projects.
    – Structures investment vehicles for real estate, energy, and agriculture. 
    – Expands digital banking solutions to enable smooth financial transactions. 

    The Bahamas can lead this movement. Not by asking permission, but by building the infrastructure.

    Conclusion: The Shift is Inevitable 

    This is not just about trade. This is about rewiring the economic power flow. 
    For too long, both regions have been extraction zones—raw materials, cheap labor, offshore finance—flowing outward, never cycling back. 

    The cycle ends here.

    This is about control. Control of capital, control of supply chains, control of our economic future. 

    Africa is rising. The Caribbean is evolving. And when these two forces align, the game resets. 

    The only question that remains is: Who moves first?

    Ashley Williams is an attorney, strategic visionary, and key figure in the rise of The Bahamas and the founder of WilliamsAdvise.

  • 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.