CARICOM leaders promise action as households feel cost-of-living pressure

As households continue to feel the squeeze from rising cost of living, CARICOM leaders and the private sector have agreed on a series of measures to reduce import costs, improve regional transport links, remove trade barriers and explore ways to make essential goods more affordable.

The commitments emerged from the second High-Level Breakfast Dialogue between CARICOM Heads of Government, the CARICOM Private Sector Organisation (CPSO) and the OECS Business Council (OBC), held in Saint Lucia during the 51st Regular Meeting of the Conference of CARICOM Heads of Government.

Held under the theme “Meeting the Affordability Challenge: Toward a Proactive Agenda for Member States and the Private Sector”, the July 6 discussions brought together more than 120 senior private sector representatives, leaders from 13 CARICOM member states, organised labour, development partners and regional institutions.

Participants examined practical measures to address rising costs, including reducing transportation and logistics expenses, diversifying imports, increasing regional investment and strengthening links between tourism and local industries.

A major focus was improving movement within the region, with leaders agreeing to advance plans for a regional ferry service operated by the private sector.

The session agreed on a September 2026 deadline for establishing the regulatory framework needed for the mutual recognition of insurance, licences and road taxes — measures considered essential to finalising arrangements for the service.

In the interim, leaders agreed to advance arrangements for a regional ferry service to be operated by the private sector.

The meeting also welcomed the start of operations by Executive Air Cargo, which has begun transporting agri-food products between CARICOM member states.

Leaders and private sector representatives also addressed barriers affecting trade within the region, agreeing to a “pairwise” approach to tackle the 57 non-tariff barriers identified by businesses as restricting intra-regional trade.

Under the arrangement, countries implementing the barriers will work directly with affected states, with support from the private sector and relevant government agencies, to develop time-bound solutions.

The meeting also examined ways to lower costs through import diversification, noting that the region could save about US$2 billion through diversification of a portion of non-fuel imports.

Participants also recognised the potential for further savings as Caribbean countries transition towards renewable energy and reduce dependence on imported fuel.

Short-term measures to ease pressure on consumers were also discussed, with Barbados Prime Minister Mia Mottley making “an explicit call for a formal tripartite compact among Governments, the private sector and organised labour, covering a basket of essential products.”

According to the release, Mottley also called on businesses to accept lower profits on essential goods to help reduce the burden on CARICOM consumers.

The discussions also focused on mobilising regional savings for investment in areas such as renewable energy, desalination, battery storage and port infrastructure.

Participants agreed that investment opportunities should be published on a common regional platform to make them more accessible, with agriculture identified as an area requiring further focus.

The meeting further renewed support for completing the Tourism Linkages Project, which aims to strengthen connections between tourism and regional agriculture, manufacturing and services.

On climate policy, private sector representatives reaffirmed support for climate action while raising concerns about the potential impact of the International Maritime Organisation’s Net-Zero Framework on Caribbean consumers, small island developing states and the tourism sector.

To ensure follow-through, the session agreed to establish working groups with defined timelines and measurable targets to monitor implementation of the commitments.

The CPSO will work with the CARICOM Single Market and Economy (CSME) Prime Ministerial Sub-Committee to advance the agreed agenda.

The meeting concluded with a commitment from governments, the private sector and organised labour to pursue practical measures aimed at delivering “meaningful benefits for the people of the Community.”

(St. Lucia Times)