CARICOM leaders urged diversify trade in Trump era

Experts on Tuesday warned that the Caribbean Community must adapt swiftly to changing global economic dynamics, particularly in light of the US President Donald Trump’s “America First” agenda.

At a virtual panel discussion, regional scholars and diplomats stressed the need for digital innovation, stronger regional integration, and diversified trade partnerships to build economic resilience.

The experts underscored the urgency of proactive engagement as the Caribbean navigates the geopolitical ramifications of the Trump administration’s policies. The forum brought together analysts to examine the impact of these policies on Caribbean economies and communities, highlighting the region’s historical resilience and the necessity for strategic adaptation.

Ambassador Wayne McCook, assistant secretary general for the CARICOM Single Market and Trade, emphasised the region’s vulnerability to changes in US trade policy due to its heavy reliance on American markets. He warned that the use of tariffs as tools for economic and national security poses significant challenges for the region.

“The focus on tariffs as economic weapons presents risks for Caribbean economies deeply dependent on US trade,” Ambassador McCook explained. He also pointed to the potential linkage between trade agreements and immigration policies, raising concerns about the deportation of undocumented Caribbean nationals.

The Caribbean’s geographical proximity to the US has historically shaped its trade patterns. However, experts cautioned that continued dependence on a single market is increasingly risky.

Former director of the Institute of International Relations at the University of the West Indies Professor W Andy Knight urged Caribbean states to reconsider their trade strategies.

“It’s convenient to trade with the US, but over-reliance on a single supplier is dangerous,” Knight argued. “Trump’s policies should serve as a wake-up call for the Caribbean to diversify suppliers and explore new markets, reducing economic vulnerability.”

As part of efforts to diversify trade, Ambassador McCook highlighted ongoing initiatives to strengthen CARICOM-Africa trade relations.

“We have organised three Africa-Caribbean trade and investment forums with Afreximbank to connect CARICOM investors with African counterparts,” Ambassador McCook noted. However, he acknowledged that logistical challenges, particularly limited direct connectivity, continue to hinder progress.

“It’s a chicken-and-egg situation,” he explained. “Increased trade would justify greater airlift and cargo capacity, but the absence of direct routes limits the flow of goods.”

Professor Knight praised recent diplomatic efforts, including Barbadian Prime Minister Mia Mottley’s engagement with the African Union. He argued that emerging markets in Africa and Asia offer vast opportunities for Caribbean exporters.

“Africa is a rapidly growing market with a youthful population, presenting significant export potential for the Caribbean,” he said. “The 21st century belongs to Asia and Africa, not the US. To capitalise on this, we must strengthen regional integration to enhance our bargaining power and reduce dependence on external markets.”

While CARICOM is negotiating an updated trade agreement with Colombia, experts stressed that market access alone is insufficient.

Professor Justin Robinson, Pro Vice-Chancellor and campus principal of UWI Five Islands called for a balanced approach that strengthens supply-side capacity and enhances regional competitiveness.

“We must improve market access while simultaneously boosting our producers’ competitiveness,” Professor Robinson said. “It’s about creating a comprehensive strategy that addresses both demand and supply factors.”

Both Ambassador McCook and Professor Knight emphasised digital transformation as a critical tool for overcoming geographical constraints and enhancing Caribbean trade competitiveness. Professor Knight highlighted the potential of digital trade to open new markets and reduce dependency on US trade routes.

“In the digital economy, geography is less of a barrier,” he explained. “Investing in digital infrastructure and e-commerce platforms can help Caribbean businesses reach markets in Asia, Europe, and beyond. This is a strategic opportunity to modernise our trade relations.”

Professor Robinson echoed this sentiment, urging Caribbean leaders to adopt a forward-looking mindset and embrace a multipolar world. He argued that digital transformation is crucial for escaping geographical limitations and maintaining global relevance.

“Our leaders must emancipate themselves from outdated economic thinking—this is not the world of 1944,” Professor Robinson asserted. “If we don’t adapt, we risk being left behind in a rapidly evolving global economy.”

With CARICOM heads of government set to meet this week, panellists urged leaders to prioritise the following strategic initiatives:

• Regional integration – deepening CSME to reduce intra-regional trade barriers and increase collective bargaining power.
• Digital infrastructure – accelerating the development of digital payment systems and e-commerce platforms to enhance trade agility and competitiveness.
• Strategic partnerships – expanding trade agreements with Europe, Latin America, Africa, and Asia, while maintaining balanced relations with the US and China.
• Supply chain diversification – actively reducing dependency on US markets by exploring alternative suppliers and markets globally.

sheriabrathwaite@barbadostoday.bb