The Dragon in the Caribbean: the future of CARICOM-China trade relations

Abstract

Over the years, the trade performance of CARICOM states has decreased as a result of poor direct investment inflows, increasing global competition and the dependence of CARICOM states on their long-standing relationships with Europe and the US. The East Asian market is one of the fastest-growing regions in the world and has been highlighted as a potential region for CARICOM states to diversify their export markets. China is the largest entity within this market and is one of the world’s largest trading nations. China’s economic prowess has growing influence, and coupled with the erosion of CARICOM’s traditional trading relationships, it is essential to explore the possibility of engaging in deeper economic relations with China. Ultimately, this article proposes the creation of a comprehensive economic and trade agreement between CARICOM and China, based on a model agreement developed between Canada and the European Union. Therefore, this article will: outline the current economic relationship between CARICOM and China, and assess its impact; identify the parties’ interests; explain the concept of a comprehensive economic and trade agreement; explore the possible effects of entering into such a comprehensive economic and trade agreement with China; and, lastly, offer considerations on provisions that can be included to ensure the viability of the agreement.