Overcoming Constraints: Advancing the 2023 Canada-CARICOM Strategic Partnership

The special relationship between Canada and the Caribbean Community (CARICOM) remains a critical component of the development of the region. Beyond simply a consequence of regional foreign policy and a source for development assistance to the region, Canada and CARICOM have remained connected throughout the years through the shared ideals of democracy, rule of law, respect for human rights, and the rules-based international system. Combined, these ideals allow for alignment of policy where Canada and CARICOM can be strategic partners in charting a path through complex geopolitical issues. However, domestic constraints often challenge CARICOM’s ability to realize the benefits of programmes and partnerships. This Trading Thought argues that CARICOM must overcome the inertia that plagues the region and actively seek the operationalization of the 2023 Canada-CARICOM Strategic Partnership.

Partnering Beyond Development Assistance

The 2023 Canada-CARICOM Strategic Partnership is a cooperative framework that allows for consistent and structured dialogue that supports collaborative action by both Canada and CARICOM in the specified areas of health, environment, defence, trade, development, and finance. As the then Prime Minister of Canada Justin Trudeau noted, the Strategic Partnership allows for both Canada and CARICOM to address important challenges together, emphasizing the importance of working together. Exemplifying the deep friendship between Canada and CARICOM, the then current Chair of CARICOM, Prime Minister Roosevelt Skerrit of Dominica, highlighted Canada’s advocacy on behalf of the region within spaces where CARICOM has no voice.  This Strategic Partnership is therefore critical as countries adapt to a new global landscape characterized by the unilateral imposition of tariffs, with companies worldwide grappling with the consequences of uncertainty and unpredictability.

This new reality has dictated that countries, which were once dependent on the United States (U.S.) market for their goods, seek to expand their scope of trade through diversification of their trading partners, moving away from a singular focus on traditional markets. As both Canada and CARICOM seek to diversify their portfolios and secure the building blocks of economic growth, trade relations with traditional partners should not be deprioritized.

Indeed, the 2023 Canada-CARICOM Strategic Partnership presents an opportunity for not only expanding Canadian investment into the region but also CARICOM member state investment into Canada within cross-cutting sectors such as health and trade. Deeper partnerships in combating non-communicable diseases and antimicrobial resistance (AMR) could become even more critical, given the apparent pending imposition of tariffs on pharmaceuticals entering the U.S., which could result in significant disruptions to the pharmaceutical supply chain. Further, Canada could utilize the Strategic Partnership as a framework to implement friendshoring within the CARICOM region for green products needed by CARICOM member states and Latin America, linking trade, environment and development policy.

While there are multiple opportunities and significant potential for financial prosperity for both Canada and CARICOM, the Strategic Partnership appears to have had little progress since its launch at the October 2023 summit between Canada and CARICOM, in Ottawa. This inactivity adds to the already sluggish trade relationship between Canada and CARICOM.

Constraints are Vulnerabilities

The domestic constraints of import dependence, small market size, limited human resources, limited economic base, aversion to risk and the influence of private sector “big business”, also considered structural vulnerabilities of small states, should not perpetuate inertia in advancing the Canada-CARICOM Strategic Partnership. As externalities like the implementation of the America First Trade Policy and the continued war in Europe have reshaped the geopolitical calendar and preoccupied countries across the globe over the past 22 months, no country can afford to allow its vulnerabilities to prevent transformation from vulnerability to growth.

The ability to overcome such domestic constraints lies within both political will and revised industrial policies. Commitments of limited financial resources are insufficient to address the systemic issues that plague member states and metastasize each year. This discourse of constant inertia due to constraints must be reoriented to reflect the changing global narratives. A new way of thinking that prioritizes an ideology of innovation through self-determination, capacity building and policy coherence is required among CARICOM member states if benefits are to be realized from partnering with Canada.

For small states like CARICOM, as global trade continues to move away from liberalization, giving rise to increased inequality and discriminatory trading practices, the Strategic Partnership provides a formal mechanism to address Canada’s complex provincial trade environment, which creates market access barriers for CARICOM products. Further, the Strategic Partnership offers commercial diplomacy opportunities for market diversification in services and specialized products, supporting Canada’s trade diversification efforts.

While the location, shared heritage, common values, increased business potential, existing diplomatic ties, and shared challenges present Latin America and Africa as attractive partners for deeper trade relations, the 2023 Strategic Partnership allows CARICOM member states to craft a new development pathway with a partner who shares the same values. For Canada, operationalization brings additional multilateral support through the building of coalitions to address global challenges, enhancing the cachet of its soft power.

The 2023 Strategic Partnership presents CARICOM with the opportunity to redefine its relationship with Canada.  This partnership can be the platform for moving towards new industrial policies predicated on health, education, trade, and artificial intelligence. As priorities shift and externalities take precedence, CARICOM can be the catalyst for operationalizing the Strategic Partnership. This deliberate action will succeed if the collective private sector within CARICOM is positioned to rapidly take advantage of opportunities arising from the partnership, and if Canada responds favourably by providing clear steps for navigating its complex regulatory environment, resulting from the divided structure of the Canadian market.

The bilateral meeting between Barbados’ Prime Minister Mia Amor Mottley and Canadian Prime Minister Mark Carney on the sidelines of the United Nations General Assembly 2025, underscores the value of the Strategic Partnership, with both leaders expressing interest in its renewal in aid of trade diversification and enhanced collaboration on regional security.

The 2023 Canada-CARICOM Strategic Partnership presents a dynamic opportunity for CARICOM member states to transform persistent domestic constraints, build resilience and deepen existing relations with one of the region’s most valued partners within the western hemisphere. The small state vulnerabilities of import dependence, small market size, limited human resources, limited economic base, aversion to risk and the influence of private sector “big business” should not drive inertia that leads to eventual stagnation. Political will, a rejuvenated industrial policy that harnesses innovation and a proactive regional private sector will allow for the rapid operationalization of the Strategic Partnership and the re-prioritization of the health, education, trade, and environmental sectors on which progressive and innovative societies are built. This will allow the region to not only enhance market access but increase economic diversification and solidify economic security.

Kai Lillia Hazlewood, B.Sc., M.Sc. (Dist.), is an International Trade Policy and Brand Strategist and a 2025 graduate of the Master’s in International Trade Policy Programme. She can be reached at klhazlewood@gmail.com.