The Caribbean tries to increase trade with Africa as established channels falter
The secretary-general of the Caribbean bloc said on Monday that the countries there want to “decisively” increase their trade chances with Africa because things are about to get uncertain with their main trade partners.
WHY IT’S IMPORTANT
In a time when nationalism is on the rise, stronger trade ties with Africa would be a big change for an economy that depends a lot on trade with the U.S., Canada, and Europe.
Washington put a 10% tax on almost all of its trade partners in April. It has been using its power to change Caribbean policies about things like Cuban health care and programs that let people become citizens by investing money in the country.
IMPORTANT QUOTE
Cara Barnett, Secretary-General of the Caribbean Community (CARICOM), said at the start of the AfriCaribbean Trade and Investment Forum in Grenada, “We must firmly open the door to more trade between our regions.”
“CARICOM trade with the Continent must grow beyond the current levels of less than 3% of our overall trade, particularly with the uncertainty that currently looms over trade with traditional partners.”
DUE TO THE NUMBERS
New data from the Observatory of Economic Complexity (OEC) shows that the U.S. is CARICOM’s biggest trade partner.
According to OEC statistics, the U.S. bought a quarter of the $38.8 billion that the bloc sent abroad in 2023 and sold 39% of the $43.4 billion that it brought into the region.
SETTING
Countries in the Caribbean are still very sensitive to global economic shocks like inflation and pandemics because they depend on tourism, food and fuel imports, and natural disasters.
Barnett said that the area has already worked with Africa on efforts that have so far failed to get former colonizers to pay for slavery and for rich countries to pay for climate change, which hurts small island states more than it helps.
