The Impact of Southern Regional Trading Arrangements on Trade Regime Bias: Some Evidence for CARICOM

Abstract

Trade regime bias, in particular anti-export bias, is likely to be a feature of 'southern' regional trading blocs of small, relatively inefficient countries, with relatively high external tariffs. This paper explores the reasons for this, and provides evidence of the pattern of trade regime bias prevailing in two CARI COM countries, Barbados and Trinidad. The paper also investigates the extent to which trade regime bias can be lowered through country-specific policy reforms, such as the lowering of non-tariff barriers, and the extent therefore to which regional commitments may constrain trade policy reform in developing countries.