Promoting Agricultural Trade in CARICOM

Abstract

Economic theory has established that the basis for international trade is the welfare gains available to trading partners on account of the economic efficiencies obtainable, with specialisation influenced by the comparative advantage to be had. Decisions on trade by economic agents are informed by the policy environment within which they operate, for their economic benefit. Analysis of intra-CARICOM trade data reveals a greater propensity for extra-regional rather than intra-regional agricultural trade, despite the recognized natural resource base in many CARICOM countries. Examination of the countries’ trade data, within the Standard International Trade Classification (SITC) food groups, gives an indication of national food demand profiles. Reviews of trade and production data suggest comparative production capabilities. An evaluation of the comparison of food demand profiles and countries’ production capabilities provides an indication of issues that warrant attention in elaborating a policy framework to promote increased agricultural trade within CARICOM. Case study analyses’ illustrate the potential for increased intra-regional agricultural, pointing to specific issues that ought to be addressed. Many of these require national level attention involving multi-party collaboration while some can benefit from regional level collaborative measures.