Recently, smaller member states of the Caribbean Community and Common Market (CARICOM) have expressed renewed concerns regarding unfulfilled promises of benefits and compensatory mechanisms that encouraged their participation in CARIFTA in 1968 and CARICOM in 1973. Larger economies such as Trinidad and Tobago, Jamaica, and Barbados have utilized CARICOM to gain preferential trade access to the smaller economies of the Organization of Eastern Caribbean States (OECS), while these smaller states face barriers to reciprocal access due to non-tariff obstacles and restrictive measures. Additionally, the implementation of the Common External Tariff (CET) has increased consumer prices for smaller states, limiting their ability to source more affordable goods from extra-regional markets.
The pressing need for a fairer distribution of benefits in regional integration was highlighted in the West Indian Commission’s 1992 Report, “Time for Action.” This report pointed out the disadvantages faced by smaller economies in trade relations within CARICOM and recommended stronger mechanisms for equitable participation. However, over three decades later, many of these suggestions remain unaddressed.
The CARICOM Single Market and Economy (CSME) was established to promote balanced regional economic integration, ensuring that smaller economies would not be disadvantaged. Although mechanisms like the CARICOM Development Fund (CDF) were intended to assist these nations, inconsistent contributions from larger members have rendered these efforts ineffective. Consequently, smaller economies struggle to diversify, modernize their industries, and compete fairly within the regional market. The CDF, designed to redistribute integration gains, continues to be severely underfunded due to sporadic contributions.
Another key aspect of CARICOM’s integration strategy is the free movement of labor, which aimed to offset the negative impacts of competition on small-scale manufacturing in the OECS. Unfortunately, this initiative has not significantly benefited nationals from smaller economies, as highlighted in the 2018 ILO Report on Caribbean Labor Mobility. The report revealed that migration trends heavily favor larger states, with Jamaica and Guyana being the primary beneficiaries of unskilled labor movement from 1975 to 2018.
In light of global economic uncertainty, reduced access to affordable financing, and the heightened challenges posed by climate change, it is crucial for CARICOM to emerge as a unified bloc. Instead, the persistent trade disadvantages facing smaller states continue to undermine regional solidarity, particularly affecting the members of OECS.
Despite decades of effort to realize a functional Caribbean Single Market and Economy (CSME), vital legal, structural, and compensatory frameworks remain underdeveloped or unimplemented. Even with the limited aspects of the CSME currently in place, Trinidad and Tobago has been the main beneficiary, exacerbating existing imbalances.
Responsibility for the stagnation of CSME advancement does not lie with regional public servants who have tirelessly championed regional integration efforts. Rather, it is attributed to political leaders prioritizing national sovereignty over collective progress. The reluctance of CARICOM governments to adhere to commitments under the Revised Treaty of Chaguaramas has left the potential of CARICOM unrealized for many citizens.
This setback extends beyond trade; CARICOM’s ability to coordinate foreign policy, once a significant strength, has weakened. Member states are increasingly susceptible to external influences, which has led to divisions that undermine regional interests, especially during times when unified action is essential to tackle existential threats.
The founders of CARICOM envisioned that deeper economic cooperation, a unified foreign policy, and collective bargaining would safeguard the region’s sovereignty and enhance prosperity for all member states. Their vision represents a critical framework for ensuring unity amid ongoing challenges.
Immediate reforms are essential to enhance CARICOM’s effectiveness and establish a truly equitable trading system. Suggested measures include: revitalizing the CARICOM Development Fund (CDF) by mandating contributions from larger states to ensure consistent funding; removing non-tariff barriers that impede exports from smaller economies; creating enforceable rules for labor mobility to guarantee equal migration opportunities for nationals from OECS; and strengthening CARICOM’s foreign policy coordination to prevent external exploitation of internal divisions.
Importantly, abandoning the regional integration movement is not an option. Despite its challenges, CARICOM remains a vital defense against global marginalization. Without it, member states risk becoming vulnerable to economic and political domination by larger powers.
The pathway to success lies in a revitalized CARICOM that fosters collaboration and delivers on its promises of fairness, equity, and mutual prosperity for all member states, regardless of size. As a long-time advocate for Caribbean integration aptly noted, addressing the pressing challenges facing the region requires the building of a stronger and more resilient CARICOM, while acknowledging existing limitations.
