Navigating Change: CARICOM’s Path to Sustainable and Resilient Trade in a Shifting Geopolitical Landscape

CARICOM Member states are navigating a complex multipolar crisis defined by shifting geopolitical alignments, increasing debt, escalating climate pressures, and accelerating biodiversity loss. 

Together, these systemic challenges pose significant risks to the region’s trade competitiveness and market access opportunities, potentially undermining economic resilience and sustainable development. 

Addressing these challenges requires coordinated policy responses that strengthen regional integration, preserve existing trade relations, diversify economic opportunities, and enhance adaptive capacity in the face of this global uncertainty.

Recent geopolitical realignments have reshaped CARICOM’s trade relations with key partners, altering market opportunities and exposing the region to new economic vulnerabilities. In response, the CARICOM Conference of Heads of Government, at its 48th Regular Meeting, underscored the importance of safeguarding market access with established partners, strengthening intra-regional trade arrangements, and diversifying external trade relationships. These priorities were reaffirmed at the 49th Regular Meeting (6–8 July 2025), where the Conference specifically addressed the CARICOM–US Caribbean Basin Initiative and emphasized the need for sustained dialogue with the United States to preserve the bilateral trade relationship. Importantly, the Conference also agreed to pursue new market opportunities with non-traditional partners, with particular focus on the African Union, Brazil, and India.

CARICOM strategies for preserving market access and enhancing competitiveness of Caribbean products in external markets

Positive external trade relations are a central pillar of CARICOM’s economic resilience strategy.

The snapshot of approaches CARICOM employs in its external trade relations, outlined below, underpins the Community’s efforts to preserve market access and enhance the competitiveness of Caribbean products, with the overarching aim of building a more resilient and sustainable trade agenda amid shifting geopolitical dynamics. 

a. Safeguarding market access with key trading partners

The United States of America (US) is the CARICOM region’s top trading partner accounting for over 40% of all CARICOM exports and slightly over 35% of all its imports in 2024 This trade relationship primarily favors the USA as evidenced by the USA trade surplus which stood at $7.4 billion in 2023, up from $7 billion in 2022.

CARICOM-US trade relations are primarily administered through the Caribbean Basin Initiative (CBI) Program. The CBI is a trade preference program launched in 1983 that consists of a series of legislative instruments. These instruments accord Caribbean Basin economies duty-free access, and in some instances quota-free access, to the US market for eligible products. The instruments include the Caribbean Basin Economic Recovery Act (CBERA), Caribbean Basin Trade Partnership Act (CBTPA), Trade Act of 2002, HOPE Act, HOPE II Act, HELP Act and Trade Preference Extension Act of 2015.

The CARICOM-US trade relations have recently been rocked by the changes in US foreign trade policy where the US has applied a 10% baseline tariff on CARICOM imports with a higher rate of 15% on imports from Guyana and Trinidad and Tobago. 

The recent shift in trade policy which has raised tariff barriers to trade is compounded by the underutilization of the CBI preferential trade scheme. CARICOM exporters have not consistently claimed preferences on CBI‑eligible exports to the US, which has limited the extent to which these products benefit from the available preferential treatment. The underutilization is asymmetrical across the region. While The Bahamas, Belize, Grenada, and Saint Lucia claimed CBI preferences on 90% or more of eligible goods in 2022,  Antigua and Barbuda and Aruba claimed CBI preferences on less than 10% of eligible goods in 2022. In the same year, Barbados claimed CBI preferences on exports worth $641,136 despite having CBI-eligible exports worth $3,736,729.

Notably, the CBI was scheduled for extension in September 2025. The CARICOM Conference of Heads of Government welcomed the tabling of a request by the US for a five‑year WTO waiver, extending the CBI until 30 September 2030.

CARICOM exporters should leverage the CBI preferences to promote utilization of the CBI and overall growth in the region’s exports to the US. There are several Caribbean products that are CBI-eligible and for which there is significant market demand in the USA. Examples of these products include cocoa and rum. 

Cocoa: The Caribbean is internationally recognized as a cocoa producing region and is highly regarded for its fine and aromatic cacao bean yields. Prior to the recent imposition of ’Liberation Day’ tariffs, unprocessed cocoa bean imports into the USA (HS 18010000- Cocoa beans, whole or broken, raw or roasted) were subject to an MFN duty of zero, whereas processed cocoa products (HS 1806) were subjected to a variety of MFN duties depending on the HS code. 

Cocoa is a CBI-eligible product that is subject to duty free access under the CBI scheme. Therefore, processed cocoa products from CARICOM member states were accorded this zero-rated preferential tariff treatment which increases the competitiveness of the CARICOM exports of processed cocoa products into the US. Despite this competitive advantage, the utilization across the region has been uneven. Trinidad and Tobago stands out as a positive example of this utilization. Trinidad and Tobago exported $3.8 million of cocoa products to the USA in 2022, primarily as finished chocolate products, under CBERA preferences. From 2021-2022, imports from Trinidad and Tobago of cocoa under the CBERA program accounted for 66.7% of imports of cocoa from CBERA countries.

Against this background and given the importance of the US market to CARICOM trade, CARICOM has sought to preserve market access and promote growth in the region’s exports to the USA.

b. Strengthening existing trade partnerships

CARICOM has also moved to update and consolidate existing bilateral trade agreements as part of the region’s response to the significant changes in regional and international trade and economic environment. This approach is illustrated by the ongoing negotiations between CARICOM and Colombia to update the CARICOM-Colombia Trade and Economic and Technical Cooperation Agreement (TECA).

Colombia is CARICOM’s third largest trading partner in Central and South America. The total value of CARICOM exports to Colombia stood at $166.38 million in 2024, up from $103.66 million in 2023 but down from $225.5 million in 2022.

In November 2025, CARICOM and Colombian trade negotiators concluded the third round of negotiations to update the TECA given the growing importance of South-South cooperation in building resilient and diversified trade systems.

c. Exploring new trade partnerships- CARICOM’s move to foster trade relations with the African Union 

In response to geopolitical shifts that have threatened market access in the bloc’s traditional partner markets, CARICOM has prioritized strengthening trade ties with new partners. Accordingly, CARICOM Heads of Government have agreed to pursue new market opportunities with non-traditional trading partners, including the African Union (AU), as part of a broader strategy to diversify and secure the region’s trade relationships.

As such, CARICOM and the AU have intensified efforts to strengthen cooperation and deepen integration between their respective regions. This commitment was evident at the recently concluded 2nd Africa-CARICOM Summit, held in September 2025, where African and Caribbean leaders agreed to advance Afro-Caribbean trade and investment, deepen regional integration, and pursue other strategic objectives.

This collaboration builds on earlier interregional discussions on issues including the common pursuit of reparatory justice for Africans and people of African descent, culminating in the signing of a CARICOM-AU Memorandum of Understanding in October 2024. In the absence of a formal trade agreement between the two regional blocs, the MOU serves as a critical framework for guiding technical dialogue and coordinated action aimed at expanding trade and investment.

Closer cooperation presents meaningful opportunities to increase trade between CARICOM and Africa. Despite the substantial market sizes and complementary demand and supply dynamics across both regions, trade flows have remained modest. In 2024, CARICOM’s imports from Africa totaled USD 214.75 million, while exports to Africa reached USD 844.39 million, resulting in a positive trade balance of USD 629.64 million in favor of CARICOM.

From 2022 to 2024, CARICOM’s imports from Africa have been dominated by fossil fuel products, primarily petroleum gas, hydrocarbons, and byproducts of crude oil (classified under HS Codes 2711 and 2714). While these figures reflect the current structure of CARICOM-AU trade, there is significant opportunity to diversify and expand market access, particularly in the bioeconomy sector, with a focus on agricultural products. 

Given that CARICOM is a net food importer, and Africa is actively working to harness its vast agricultural potential to become a net food exporter, there is scope for Africa to increasingly supply the CARICOM region. This shift could help fill gaps left by declining trade with traditional partners and foster stronger South-South cooperation in building resilient and sustainable trade systems between the two regions.

d. Compliance with emerging sustainability regulations implemented by key trade partners 

Emerging sustainability regulations in the European Union (EU) are reshaping the landscape of EU market access, with direct implications for CARICOM’s external trade relations. Examples of these regulations include the Carbon Border Adjustment Mechanism (CBAM) and the Corporate Sustainability Due Diligence Directive (CSDDD). These measures introduce new compliance thresholds related to carbon intensity, supply chain due diligence, and product sustainability, which Caribbean exporters must now navigate to maintain competitiveness. While the Economic Partnership Agreement (EPA) between CARICOM and the EU already signaled the importance of aligning with EU environmental frameworks, the new regulatory wave intensifies this imperative. 

In addition to headline sustainability regulations such as CBAM and CSDDD, EU compliance frameworks like the revised EU Fisheries Control Regulation are expected to have more immediate and direct impacts on CARICOM bioeconomy exports, particularly fish and seafood products. The updated Fisheries Control Regulation (EU 2023/2842), which entered into force in January 2024, strengthens traceability, monitoring, and enforcement standards for all fishing activities supplying the EU market. It introduces the CATCH certification system, which requires EU importers to submit catch certificates using the EU CATCH tool for fishery products entering the EU market. This measure is intended to prevent importation of illegal, unreported, and unregulated fishery products. The CATCH system will become mandatory by January 2026.

Consequently, CARICOM’s exports face increasing pressure to demonstrate low environmental impact and traceable, ethical production practices. 

Given the volume and composition of CARICOM-EU trade flows (in 2024, the EU was CARIFORUM’s second-largest goods trading partner after the USA) and the particular exposure of fisheries products, these regulations risk becomingde facto market barriers unless the Region proactively adapts its standards, certification systems, and support mechanisms for producers.

Turning inward: Developing a regional policy framework to foster sustainable and resilient trade within the CARICOM Community

CARICOM has a broad but fragmented regulatory and policy framework that addresses sustainability and resilience of intraregional trade within the Caribbean region. This policy framework is founded on the Revised Treaty of Chaguaramas establishing the CARICOM. The Treaty includes provisions on fisheries management and development, natural resource management and environmental protection. On the services side, the Treaty includes provisions on sustainable tourism development.

Beyond the Treaty, CARICOM has advanced efforts to build a sustainable and resilient trade agenda through targeted policy initiatives. The Caribbean Community Common Fisheries Policy (CCCFP) establishes a unified framework for the sustainable management of marine resources across member states. In addition, the Environment and Natural Resources Policy Framework (2022–2032) was developed in response to the region’s unique vulnerabilities to global environmental change and the escalating climate crisis. This framework seeks to safeguard CARICOM’s natural assets while simultaneously promoting socio-economic development in the face of these global challenges. 

Furthermore, ongoing regional consultations on the Draft CARICOM Ocean Governance Policy reflect continued engagement. Notably, stakeholder discussions in July 2025 addressed critical issues such as sustainable ocean resource management, marine spatial planning, and maritime security.

The push towards designing a sustainable trade agenda for CARICOM is gaining momentum.

Furthermore, CARICOM has taken steps to promote its adaptive capacity and strengthen the trade resilience of the Community by enhancing internal market access opportunities for Caribbean products. The steps include: 

I. Vision 25 by 2025– this is a long-term socio-economic partnership that was established to reduce the Region’s rising food import bill by 25% by 2025. The initiative prioritizes improving intra-regional trade by eliminating barriers to trade, improving logistics, promoting cross-border investments, and increasing access to alternate finance and insurance. The product scope covers key CARICOM agricultural commodities including poultry meat, eggs, corn, rice, soya, coconuts, fruits, root crops, herbs, and spices.

Several policy initiatives were also developed to supplement this initiative. To date, the Initiative has supported the approval and implementation of the Trade Policy for Animal and Animal Products (TPAAP), Regional Agricultural Health and Food Safety Policy, Sanitary and Phyto Sanitary (SPS) Guidelines for Trade in 19 special agricultural commodities, and the adoption of an Alternate SPS Dispute Settlement Mechanism. Additionally, the Initiative has led to an estimated 24% increase in food production across the Region. The increase has been supported by infrastructural investments in cold storage, farm-to-market access roads, solar dryer facilities, loan approval, and the establishment of dairy facilities.

In February 2025, the Vision 25 by 2025 was extended to 2030 to account for the uncertainties created by the current global trade arena and the devastating effects of natural disasters on agricultural output in the Region.

II. Alternate SPS Dispute Settlement Mechanism- The CARICOM Council for Trade and Economic Development (COTED) adopted a proposal from the Caribbean Agricultural Health and Food Safety Agency (CAHFSA) in 2022 to establish a procedure for resolving disputes between CARICOM member states concerning the application of Sanitary and Phytosanitary (SPS) measures. This procedure enables member states to address SPS-related disputes at the technical level through conciliation. Although the outcomes of this process are non-binding, they may be submitted to COTED if the disputing parties choose to escalate the matter.

The specialized forum is designed to encourage member states to resolve SPS disputes through technical dialogue before seeking formal consideration by COTED. In this way, the procedure is expected to enhance intraregional trade in agricultural products by facilitating efficient dispute resolution processes related to agricultural health and food safety standards.

III. Free movement- The Enhanced Cooperation in Free Movement of CARICOM Nationals opens the door to a wider regional market for service providers, particularly in bioeconomy sectors such as eco-tourism, wellness, and nature-based cultural experiences. By removing mobility barriers, the initiative enables service entrepreneurs to scale operations across multiple jurisdictions, fostering inclusive and sustainable growth in key sectors. This model also sets a precedent for other member states to join, expanding the reach and impact of CARICOM’s single market vision.

The breadth and diversity of CARICOM’s trade-related policies and initiatives challenge the notion that its approach to sustainable and resilient trade is primarily reactive to Global North priorities. Instead, the frameworks outlined in this section, from fisheries and environmental governance to SPS coordination and free movement position CARICOM as a proactive policy developer shaping its own agenda for sustainable and resilient growth. This internal momentum reflects a deliberate effort to craft regionally relevant solutions rather than adopt externally imposed models. 

Strengthening CARICOM’s negotiating voice 

CARICOM is strategically positioned at the intersection of numerous regional and international platforms that it can leverage to amplify its negotiating voice, both collectively as a bloc and individually through member states with access to specific forums. This layered access enables CARICOM to pursue sustainable and resilient trade-driven economic growth by channeling its interests through multiple avenues of influence.

Small but mighty- approximately 12% of all WTO members are CARICOM countries (15 member states and 5 associate member states) while an estimated 10% of all UN members are CARICOM countries.

CARICOM can leverage these groupings to advance shared regional priorities. This strategy was evident at the WTO’s MC13, where CARICOM coordinated regional positions and engaged through coalitions and groupings such as the G90 and ACP. For instance, 13 CARICOM member states form part of the G90 accounting for just over 15% of the group membership.

At the country level, CARICOM member states have utilized their diplomatic capacity to advocate for a more inclusive trade system through active participation in WTO forums. Barbados, for instance, currently coordinates the Informal Working Group on Micro, Small and Medium-sized Enterprises (MSMEs) which champions MSME participation in global trade. Jamaica coordinates the work on e-commerce including on a WTO Work Programme on E-Commerce. 

Against this background, CARICOM should leverage its capacity both as a regional bloc and through its group memberships to advocate for its negotiating priorities in promoting sustainable and resilient trade. This can be done through active engagement in WTO platforms such as the Trade and Environmental Sustainability Structured Discussions (TESSD) and the Committee on Trade and Environment (CTE). a

With emerging sustainability regulations and rising nationalist economic policies increasingly impacting CARICOM trade, the Community has an opportunity to make targeted statements at MC14 and within these forums, either as a bloc or through country memberships in the various groupings, on how such measures affect its economies.

Matthew Wilson is the Ambassador and Permanent Representative of Barbados to the United Nations, World Trade Organization and other International Organizations in Geneva. He chairs the WTO MSMEs Working Group and currently coordinates the Africa, Caribbean, Pacific group in Geneva.

Brian Kelly Nyaga (Kelly) is a specialist in international trade law and policy, with experience in policy advisory and consultancy roles across the field. He holds an LLM in International Law from the Geneva Graduate Institute (IHEID) and is admitted as an Advocate of the High Court of Kenya.