CARICOM’s orientation in external trade negotiations and resilience building

Abstract

This chapter provides a description of CARICOM's orientation in the various external trade negotiations. In so doing the chapter argues that there may be a need to revisit CARI COM' s stances in external trade negotiations, and proposes a more offensive approach focusing on improving access to export of services rather than the defensive one calling for the retention of goods trade barriers. In the region there remains excessive fear that liberalisation will result in undermining the fundamentals of especially the smaller economies and weaken their fiscal systems. However, while there may be a basis for such fear, not sufficient attention is being given to the opportunities that may be realised from liberalisation. The chapter also discusses the connection between trade policy and economic resilience and argues that unless the specialisation agenda is taken seriously, the prospects for building economic resilience will remain weak. The building of economic resilience in small economies like those of CARICOM can be enhanced if trade policy is conducive to market flexibility and sound macroeconomic policies, permitting enterprises to specialise in those areas where they compete effectively.