Caricom-Canada Trade Relations: Challenges, Opportunities and Recommendations for Strategic Partnership in a Changing Global Landscape

This policy brief examines the current state of trade relations between Canada and the Caribbean Community (CARICOM), identifying key trends, persistent challenges and emerging opportunities in an evolving global landscape. Despite longstanding diplomatic and economic ties and the preferences under the Canada-Caribbean Trade Agreement (CARIBCAN), trade flows between Canada and CARICOM Member States remain modest, and preference utilisation is low. While CARICOM once had a merchandise trade surplus, it now has a trade deficit with Canada. However, the region maintains a services trade surplus with Canada, mainly due to commercial services and travel services. Current geopolitical developments present challenges for both partners, but the new Canada-CARICOM Strategic Partnership and both partners’ push for diversification away from US-dependence present avenues for deepening engagement. The brief outlines four main strategic policy recommendations aimed at revitalising trade and economic cooperation, enhancing trade facilitation and capacity-building support for CARICOM states, as well as fostering greater private sector and diaspora engagement.