Trade and Development Issues in CARICOM: Key Considerations for Navigating Development

This collection of CARICOM-specific research represents a spectrum of writing on interrelated themes of trade, growth, debt and the environment as it applies to development prospects in the Caribbean. The contributors include a mix of researchers, at various levels of experience and institutional representation, who utilize theoretical and empirical perspectives to examine key concerns of policymakers and other stakeholders. The editors have organized the discussions in such a way as to sequence thought about the region which emphasizes the peculiarities of smallness and openness in the context of a globalized world. The importance of economic integration regionally and integration into established global production value chains are highlighted. This type of strategy becomes obviously relevant especially in the post–Covid-19 recovery processes. Trade and Development Issues in CARICOM represents a point of reference for regional policymakers and thinkers to contemplate the multifaceted nature of regional growth and development.

CONTRIBUTORS: Antonio Alleyne, Dillon Alleyne, Ramesh Chaitoo, Anthony Gonzales, Rebecca Gookool-Bosland, Roger Hosein, Troy Lorde, Winston Moore, Machel Pantin, Michelle Scobie, Ranita Seecharan, Damie Sinanan, Nirvana Satnarine Singh

• Language: English
• Publisher: The University of the West Indies Press
• Release date: Apr 11, 2022
• ISBN: 9789766408800

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Preface

This book collates the contributions of various Caribbean authors to the existing body of literature on trade and development using a series of empirical perspectives to emphasize these links in the region. In today’s world trade cannot be discussed meaningfully unless it is related, inter alia, to growth, integration, the environment, debt and investment. Within our limited available means, only some of these themes could be selected, but the work of the Trade and Development Unit of the University of the West Indies (UWI) Department of Economics, of which this book is a product, has been pursuing these themes with varying success over the last ten years.

The introduction of greater robustness in the empirical work on trade was also paramount in the authors’ minds. The latter strikes at the very foundation of the discussion of trade in the region, and, as a start, the authors seek to provide more evidence-based analysis of some of these subjects.

A good place to start was on the concept of comparative advantage, which is widely used in the region with the aim of establishing whether the basic theoretical conditions for the use of this concept hold for the region. As a result, the empirical validity of the Hillman condition is explored after first outlining the revealed comparative advantage (RCA) index and evaluating whether the Hillman condition is met for six CARICOM economies and thus their RCA values are an accurate reflection of their comparative advantage position.

No doubt as well, another useful introduction was to provide some background to CARICOM itself by means of a short overview of its evolution and trade performance. Brevity was underscored here and the focus was more on the behaviour of regional trade since its inception, which is in sync with the overarching concentration on the role of trade in development in this book.

The selection of themes comprises both old and new ones as the authors found that one needed to revisit some former debates and try to bring some additional insights in view of the expansion of knowledge over the years. The pros and cons of trade strategy were one of those themes. Although subjected to lengthy discussion in the region, we found it necessary to return to the notions of export-led growth and import substitution. On the former, controversy still lingers as to the extent to which the export sector has successfully stimulated growth through productivity in other sectors. Using a simple Cobb–Douglas production function, the impact of the export sector on the non-export sector is analysed to determine the effect of exports on the countries’ economic growth rates via changes in productivity.

The above analysis is juxtaposed with a study of the feasibility of regional import substitution as a strategy for sustainable development in the Caribbean. The approach taken towards the latter is evidence-driven in so far as it relies heavily on trade data over a long period to determine to what extent and in what product categories intraregional production and trade can replace extraregional imports. Consideration of the latter topic was driven to some extent by observed tensions in international trade today and the rise of protectionism in some quarters.

The enduring preoccupation with the sustainability of export competitiveness in small countries naturally followed from the above, and consequently, both an assessment of intra-industry trade within and outside CARICOM was pursued along with the use of the Trade Competitiveness Analysis of Nations (TradeCAN) framework to identify those sectors of the CARIFORUM countries within the context of the CARIFORUM–EU Economic Partnership Agreement for which trade is either expanding or declining in dynamic sectors and stagnating sectors. The main purpose is to suggest relevant policy approaches to benefit from rising star sector experiences and to reverse the decline in missed opportunities sectors.

The work on intra-industry trade breaks new ground since generally the expectation is that such trade is negligible or non-existent in developing countries, especially small ones. As a result, most analysts tend to bypass this topic of research without realizing that the determinants of both North–South and South–South intra-industry trade are more complex, with implications even for small developing countries.

In view of the large number of service economies in the Caribbean Community and in order to complement the emphasis on goods trade above, a review of the services trade picture and trade and investment policies of selected CARICOM states is undertaken. The objective is to provide some comparative perspective with similar developing countries. In this regard, the performance of Mauritius was regarded as a useful benchmark. The focus is on non-tourism services and on the policy or administrative changes to drive investment in this sector which has remained low compared to tourism.

Against the above background, the authors moved directly into investigating the depth of CARICOM integration with a view to assessing the degree of institutional integration and the extent to which it fostered the growth of trade and market integration for the promotion of intraregional and extraregional trade. In line with the Balassa approach, the various waves of policy reform are delineated and measured by an indicator which is then related to trade deepening as represented by indicators as the share of intraregional trade, trade intensity, trade openness and world trade integration. The main goal of the latter examination is to provide some meaningful measurement of the degree of actual regional integration as against what was targeted and discover the extent to which what has been attained institutionally facilitated the goals for increasing intra- and extraregional trade.

The discussion is then completed with some insights into trade and the environment as well as an investigation into the regional debt situation. As small island developing states (SIDS) depend on trade for their development, trade policy is tied to environmental policy and outcomes. The complex networks of relationships between trade and the environment and the environment and trade in four areas of relevance to SIDS, climate change, sustainable fishing, biodiversity and biosafety, and the marine environment, are therefore explored. Bio-trade is a relatively new trade–environment frontier and one that will become more important for Caribbean SIDS in the near future. Some treatment had to be given it. This exercise is therefore ambitious as it attempts to cover the spectrum of debate on trade and the environment in a broader manner.

The chapter on Caribbean debt is more devoted to isolating the factors determining the current debt burden. As such, it concentrates on loose fiscal policy as well as a number of structural factors, inter alia, a declining export capacity, the responses to climate change and frequent natural disasters in the region. It draws on a number of studies which discuss the role of these factors in explaining the debt accumulation in the region. In relation to trade, the lack of a strong export capacity and the impact of the current account deficit in determining the fiscal deficit are identified in the relevant cases in terms of their impact on the debt burden. Finally, the chapter points to the uniqueness of Caribbean debt and the need for a policy initiative that would resolve this situation in a sustainable way. Its proposed solution makes interesting reading considering the earlier piece on trade and the environment where climate change was discussed.

As discussed above, the main themes in this book relate to trade competitiveness, trade performance in goods and services, trade development strategy, regional integration, world trade integration, trade and the environment, and the debt overhang. An effort had to be made to pull them together to benefit from the overlapping coherence and synergies that stem from such a range of themes. The significance of the specialized nature of these subjects had, however, to be respected while doing so.

The book benefits from the expertise and experience of Roger Hosein, Rebecca Gookool-Bosland, Anne-Marie Mohammed, Ramesh Chaitoo, Dillon Alleyne, Machel Pantin, Anthony Gonzales, Ranita Seecharan, Antonio Alleyne, Troy Lorde, Winston Moore, Michelle Scobie, Damie Sinanan and Nirvana Satnarine-Singh. They are all trade specialists working in various capacities in the academic and policy worlds. As a group, they provide a mixture of thought that allows the book to achieve some relevance in the current trade debate without losing its main objective of being a scholarly work. A large measure of gratitude is due to these contributors and peer reviewers who took time from their busy schedules to see this work brought to fruition. Recognition is also due to the efforts of technical staff and research teams without whom this work may not have seen the light of day.

The task of writing this book began in 2018 and took roughly two years. It required a fair amount of perseverance, as promises and delivery of work tended to vary considerably. In some cases, it was no longer possible to wait for the texts even though the deadline was extended on several occasions. The authors came to understand how difficult it was for some of these persons to finally complete their contribution and are hoping that in the next round they may find it more opportune to come on board.

Each draft chapter was peer reviewed by two scholars in the field. Suggested changes were made and checked by the main editors. A few contributions were rejected and could not be carried without substantive revision for which the authors did not have the time. No concession was made to authors who did not meet the guidelines since it was felt that the final arbiter would be the scholarly standards that had to be upheld. All the contributors to this book have a solid track record in publishing and were fully aware of the need for compliance. In this way the authors had no difficulty with the contributors finally selected.

The table of contents not only offers a listing of the topics but is also designed with a sequence in mind to read the book as the various topics have been grouped in a way to optimally gain from their synergies. We are confident that this book will appeal to academics, policymakers, students, researchers and others working on trade and development in the region.

1.

Insights into the Evolution of the CARICOM’s Trade

RANITA SEECHARAN AND ROGER HOSEIN

International Trade and the CARICOM Economies

Fifteen Caribbean economies (most of them small island developing states (SIDS)) formed a trading bloc called the Caribbean Community (CARICOM) that came into force in 1973 with the signing of the Treaty of Chaguaramas. The CARICOM stands on four pillars: economic integration, human and social development (functional cooperation), foreign policy coordination and security that form the base of a number of diverse activities to be adopted by each member state. Article 4 of the Treaty of Chaguaramas distinguished the CARICOM states into two groupings with fifteen full members:¹ more developed countries (MDCs) and less developed countries (LDCs). Six countries, namely, The Bahamas, Barbados, Guyana, Jamaica, Suriname, and Trinidad and Tobago were classified as MDCs, while the remaining nine member countries were categorized as LDCs. The remaining states are; Antigua and Barbuda, Belize, Commonwealth of Dominica, Grenada, Republic of Haiti, Montserrat, Federation of St Kitts and Nevis, Saint Lucia, and St Vincent and the Grenadines.²

With the exception of Haiti and Belize, all the LDCs are members of the Organization of Eastern Caribbean States (OECS) which is a subregional economic union.

The distinction between MDCs and LDCs does not follow the international UN classification of developed, developing and less developed countries. There are no clear established criteria for this distinction. In general, however, Caribbean MDCs are typically larger in market size and more developed relative to LDCs as evidenced by higher GDP per capita higher Human Development Index (HDI) rankings, lower poverty levels and a greater adoption of technology. The LDC group of countries is further segmented into the Eastern Caribbean Currency Union (ECCU), comprising the six independent OECS states (see table 1.1). The ECCU is a monetary union whose members share a central bank (common monetary policy) and a currency which has a fixed peg to the US dollar. All ECCU economies are small, tourism-driven and are highly vulnerable to weather-related shocks.

Notwithstanding its diverse composition, the CARICOM is a small market, necessitating the export of goods and services to ensure the survival of local industries and the preservation of domestic employment. Such dependence on trade, however, exposes SIDS to international price shocks and competition on a global scale. The Caribbean SIDS have historically adopted a dependence on international trade stemming from their commercial exportation of sugar under a hinterland–metropole arrangement and executed by preferential trade agreements that allowed CARICOM countries to receive prices higher than other exporters for similar goods such as sugar.

CARICOM countries currently benefit from market access in the form of asymmetrical reciprocity in the European Union under the Economic Partnership Agreement. Previously, before 2008, market access was governed by special non-reciprocal trade arrangements in the form of the Lome and Cotonou Agreements. In the United States and Canada, special non-reciprocal trade agreements such as the Caribbean Basin Initiative (CBI) and the Caribbean–Canada Trade Agreement (CARIBCAN) respectively, have and continue to provide market access for CARICOM to these countries.³ These special non-reciprocal trade agreements violate the most fundamental principles of its rules, those of non-discrimination and reciprocity, and require a World Trade Organization (WTO) waiver to become established. For these reasons, the region has begun to engage its North American partners concerned with an extension of the waiver and seeking a reciprocal arrangement (WTO 2015). After several rounds of negotiations since 2007 with Canada, no free trade agreement (FTA) has been reached to replace the existing CARIBCAN arrangement (WTO 2015). Consequently, at the request of Canada, the WTO extended the CARIBCAN waiver until 2023 (WTO 2015). Under the CBI, duty free access into the US market is expected to remain in effect until 2020 or until an FTA is negotiated between both parties.

Faced with the grim prospect of erosion and eventual elimination of preferential market access for their major agricultural exports, coupled with obligations under the WTO to liberalize their domestic markets in goods and eventually services, policy strategies centred on export competitiveness were recognized as critical for the region’s survival. The process of trade liberalization has, however, highlighted the region’s weak competitive position; to not only compete in the extraregional market but also to defend domestic markets against foreign goods. Competitiveness is an overarching problem facing the regional trade sector and is a consequence of international and domestic factors, more so the latter, due to high production costs, limited technology adoption, increased costs and constraints of doing business, low labour productivity, a worsening investment climate due to increasing levels of crime and violence, institutional challenges, ageing port infrastructure, corruption, insufficient access to business financing, inadequate supplies of foreign currency to meet immediate supplier commitments and overvalued exchange rates, in some countries. On the regional sphere, Caribbean scholars have long recommended that deliberate steps needed to be taken for countries to engage in production integration by pooling regional resources, thereby enlarging productive capacity and product range, ultimately translating into increased competitiveness for CARICOM firms. Buy-in for this strategy continues to be a challenge.

The link between trade, growth and development is richly rooted in decades of literature (for example Feenstra 1990; Frankel and Romer 1999; Rodrik 1999). Despite contentious views, there is agreement that trade cannot be viewed as a stand-alone policy. It must be embedded into a broader development strategy and agenda for inclusive and sustainable growth. According to Bilal (2012), trade can bring about development. But the path from trade to inclusive and sustainable growth, and ultimately to development, can be a tortuous one, full of obstacles and pitfalls … trade and other economic reforms must be tailor-made to the specific conditions and characteristics of the country or region where they are undertaken. Khadan (2015) noted that international trade is one of the most important drivers of economic growth for developing countries, including the Caribbean, and that while trade agreements are a necessary condition for increasing Caribbean exports, it is not a sufficient condition. Focus should instead be placed on innovative means of reducing input costs, reducing structural gaps to be better able to transform production systems and optimize resource allocation, increased innovation and research and development, development of a harmonized suite of incentives, export financing strategies and the integration of renewable energy sources in the region’s energy matrix.

This chapter serves a documentary purpose, by providing details on the guiding policies governing intra-CARICOM trade, the status of economic integration in the CARICOM and the evolution of the CARICOM’s trade patterns.

CARICOM’s Trade Policy Regime

The CARICOM’s Trade Policy Regime is guided by provisions under the CARICOM Treaty. These provisions constitute, in the first instance, the establishment of a Common Protective Policy with respect to third countries. Specifically, this policy provides for the establishment of a Common External Tariff (CET). In 1992, a four-phase implementation of the CET was established which called for the reduction of the CET rates over a five-year-phasing-down period commencing 1 January 1993 and ending 1 January 1998 (IDB, 2005). The first phase of the four-phase implementation process spanned January to June 1993, the second phase spanned January to June 1995, the third spanned January to June 1997 and the fourth spanned January to June 1998.

The rate structure of the CET distinguished, firstly, between the tariff rates to be progressively reduced by MDCs of the CARICOM and those to be reduced by LDCs. Secondly, a distinction was made in rates between products which were inputs into the production of other products, that is, primary and intermediate products as well as capital goods, and those of final goods. A further distinction was adopted between those goods which were deemed to be competing with similar products produced within the region and those which were regarded as non-competing. Of the former, if regional production of a good or immediate regional production potential of this good from existing capacity amounted to over 75 per cent of regional demand, then a similar good, imported from outside the CARICOM membership, would be considered a competitor or a competing substitute. Where the good did not satisfy the 75 per cent minimum, then the import of similar products originating from non-CARICOM countries would be deemed to be non-competing. Accordingly, tariff rates were assigned using this categorization along with a timetable for implementation (see table 1.2).

Table 1.2. Tariff Rates Assigned to Categories and Period of Application

Source: Caribbean Trade and Investment Report (CARICOM 2000).

Within the categories of inputs and final goods, specific products were identified as requiring special treatment in regard to the assigning of tariff rates. Among these products were agricultural and agro-industrial goods including live animals, vegetables, fruits, nuts, fertilizer and soil preparation machinery; goods of which a significant proportion of the output of the producing enterprises are destined for third country markets, for example urea and plywood; other goods deemed to be sensitive on the grounds of their cost-of-living importance such as certain meat and fish products, butter, cheese, medicaments and educational materials; safety equipment, namely fire-fighting apparatus and life jackets; goods which are inputs into the provision of important social services such as health and education and those goods that are important sources of import duties for member states, namely, alcoholic beverages and cigarettes (CARICOM Secretariat 2009).

The second set of provisions within the CARICOM’s Trade Policy Regime governs the liberalization of trade in goods among CARICOM states. Such internal liberalization was to be achieved through the application of prohibitions as set out in the CARICOM Treaty against the use of protectionist measures by member states, including tariffs and quotas on goods which are of common market origin. The rules of origin (RoO) define criteria under which a good would qualify for duty treatment when traded intraregionally. Accordingly, goods qualify for Common Market Origin if they are wholly produced within the Common Market or produced partly from materials imported from third countries, provided that they have undergone substantial transformation within the Common Market. Goods may be classed as substantially transformed if either they are classified under a different tariff heading than the materials used for their production or if they achieve a prescribed level of local or regional value added.

Under the wholly produced criterion, several products have been identified under the RoO as needing to meet this condition in order to qualify for common market treatment and must be adhered to by both MDCs and LDCs. Live animals born and raised in the common market are a typical example.

MDCs and LDCs are also required to satisfy the same qualifying criteria for (1) the change in tariff heading rule; (2) goods produced from regional materials; (3) goods produced from materials of specified HS headings; (4) goods produced from materials not included in a specified HS heading; and (5) goods produced by specified process. For those products where the stipulated criterion is the percentage value added, the value of non-common market materials that can be utilized in the production of the good is limited to a specified percentage of the export price of that item. The prescribed percentages vary among items, with LDCs typically granted concessionary terms for production of cheese and chocolate confectionary, for example (Caribbean Trade and Investment Report; CARICOM 2000).

The third set of provisions under the CARICOM’s Trade Policy Regime relate to the special treatment of LDC goods under the RoO so as to enable them to better benefit from the integration arrangement. Specifically, in a selected number of product areas, goods manufactured in LDCs are required to adhere to less stringent conditions relative to MDCs in order to qualify as CARICOM goods. Additionally, under this provision LDCs are permitted access to MDC markets under conditions they would not satisfy if conditions similar to those applied to MDCs were to be observed.

Economic Integration in the Caribbean

Caribbean countries are a group of geographically close, highly open, small states. These criteria of smallness and closeness coupled with limited resources and shared historical experiences inspired the integration movement within this region. There have been many proponents of Caribbean regional economic integration over the last few decades, initially with a focus on the trade aspects of integration, particularly, since the Caribbean’s pattern of trade (a function of the region’s structure of production) has traditionally been oriented to extraregional markets (Girvan 2006). A reorientation of the structure of production to significantly alter the existing pattern of intraregional trade was thus contemplated by Caribbean scholars and formally articulated in an early study by Demas (1965) and McIntrye (1971), who impressed that, for the Caribbean, the main benefits from integration are derived from the freeing of trade and from the development of complementary structures of production and demand.

Caribbean economies have undergone several permutations of economic integration arrangements spanning the West Indian Federation to the Caribbean Single Market and Economy (CSME), see table 1.3. The formation of the West Indian Federation in 1958 was one aimed at Caribbean countries obtaining political independence from Britain as a single federal state (Lewis 2008). This arrangement collapsed not long after, with the withdrawal of the two largest members, Jamaica and Trinidad and Tobago, who instead opted for self-governance. In 1965, another attempt at economic integration was considered, through the Caribbean Free Trade Association (CARIFTA) agreement, which sought to improve the economic conditions and development levels of Caribbean member states. CARIFTA was later replaced by the Caribbean Community (CARICOM) in 1973. Regional integration in the Caribbean further deepened as CARICOM members, in 1989, agreed to establish the CSME.

Table 1.3. Economic Integration Initiatives: From CARIFTA to the CSME

Source: Girvan (2010).

The broad objectives of the CSME include full employment of CARICOM labour and the other factors of production and competitive production leading to greater variety, quality and quantity of goods and services, thereby providing greater capacity to trade with other countries. The CSME arrangement was therefore envisioned as an integrated development strategy to be implemented in phases. The first phase, the implementation of CARICOM Single Market (CSM) was achieved on 1st January 2006 following agreement by six member states. To date, twelve CARICOM member states are participants of the CSM. The second phase of the CSME arrangement, that is, the Single Economy was initially expected to be implemented in 2008.

At the eighteenth Inter-Sessional CARICOM Heads of Government Conference in 2007, recommendations for the phased implementation of the Single Economy were accepted. The Single Economy was therefore formulated to be implemented in two phases, with Phase 1 (the consolidation of the Single Market and the initiation of the Single Economy) expected to have taken place between 2008 and 2009. While some progress has been made, elements of Phase 1 are yet to be completed. Consequently, Phase 2, which involved the completion of the Single Economy, anticipated to have taken place between 2010 and 2015, has essentially been placed on pause (Girvan 2013).

In July 2017, the Conference of Heads of Government approved an Implementation Plan for the CSME (2017–2019) (CARICOM 2018), one that coincided with the CARICOM Strategic Plan (2015–2019) (CARICOM Secretariat 2014). The CSME Plan details the level at which measures required under the Revised Treaty of Chaguaramas have been implemented and outlines timeframes within which implementation is to be accelerated.

The timeframes in the plan are as follows:

Immediate to short term (up to six months): Measures that could be implemented immediately. Implementation of these measures has been outstanding for some time and implementation would not include much effort and can be undertaken instantly. For example: Amendment of legislation to recognize Haiti as a member of the community participating in the CSM.

Medium term (up to one and a half years): The measures in this category are considered priority actions to be taken by the individual member states. Implementation of these measures has been outstanding for some time and implementation has significantly begun. For example: Comprehensive Review of the CARICOM CET and RoO.

Long term (up to two and a half years): These measures are already work in progress and implementation would require a little more effort to ensure successful implementation. In most instances capacity building and institutional strengthening are required. Policy guidance may need to be received in several instances. For example: The acceptance of photo (and machine-readable) identification (ID) for intraregional travel.

Special considerations (SC): These are the measures that have to be considered against guidance that is to be provided by the conference. Once the guidance is received, a programme of action/implementation plan is to be developed and agreed to, after which implementation will take place.

CARICOM’s Intraregional Trade Profile

Economic activity in the CARICOM has transitioned from plantation agriculture to a concentration in the services and natural resource sectors. Trade and production, however, remain indelibly linked, with the former being among the main sources of revenue for CARICOM countries.

Fig. 1.1. CARICOM’s export and import profile, 2001–2017

Source: Author’s construction using data from the United Nations Commodity Trade Statistics Database in 2018, https://comtrade.un.org/db/.

The CARICOM’s total export mix is comprised of, on average, 85 per cent of exports to the non-CARICOM market and 15 per cent to the CARICOM market.

On the import front, 89 per cent of total CARICOM imports come from the extraregional market, while 11 per cent is sourced intraregionally. The rest of this section is dedicated to a deeper view of the CARICOM’s intraregional trade profile (See Figure 1.1 above).

For several decades following the entering into force of the CARICOM arrangement, intraregional trade remained flat and largely balanced. In 1973, intraregional exports accounted for 10 per cent of total exports by CARICOM countries, while intraregional imports constituted 7 per cent of the CARICOM’s total imports. By 2008, intraregional exports and imports amounted to over 16 per cent and 12 per cent, respectively, of total CARICOM export and import respectively.

From 2005 onwards, there was a sharp rise in intra-CARICOM exports predominantly on account of two factors (See Figure 1.2 below). In the first instance, this period coincided with the second oil boom (2002–2008), which saw a jump in oil prices and a surge in natural gas production (and prices) in Trinidad and Tobago (Hilaire, Henry and Ramlochan 2012). The latter was due to construction of the Atlantic liquid natural gas plants in Trinidad and Tobago, with the first train being completed in 1999, the second in 2002, the third in 2003 and the fourth in 2005. Concurrently, there was a rapid increase in ammonia, methanol and urea production by 213.3 per cent, 100.9 per cent and 31.5 per cent, respectively between 1998 and 2009. From mid-2014, WTI oil prices began to decline from over US$100 per barrel to below US$30 by early 2016. Prices have since recovered, reaching over US$60 per barrel at the end of 2017.

Fig. 1.2. A historical view of intra-CARICOM trade, 1973–2017

Source: Author’s construction using data from the United Nations Commodity Trade Statistics Database in 2018, https://comtrade.un.org/db/.

The second factor relates to the CARICOM’s formal adoption of the CSME concept in the Revised Treaty of Chaguaramas in 2001 and, more specifically, the establishment of the CSM in 2006. The elimination of restrictions on regional mobility of labour and capital coupled with the right of establishment of CARICOM-owned businesses in any member state without restrictions also supported the rise in intraregional trade.

On an individual country basis, CARICOM exports are dominated by its MDCs, with Trinidad and Tobago exporting US$26,852.6 million (table 1.4) or 75 per cent of total CARICOM exports over the last seventeen years. The LDCs in aggregate accounted for US$1,705.2 million or approximately 4.7 per cent of total CARICOM exports over the time period under study. Of this, 3.6 per cent was exported by the OECS bloc.

Notwithstanding Trinidad and Tobago, other significant performances were recorded by Barbados, Suriname and Guyana; which collectively made up 18 per cent of intraregional exports. As it related to the LDCs, among the more notable performances were St Vincent and the Grenadines (US$499 million or 1.4 per cent), Belize (US$413.8 million or