CARICOM Urges Economic Diversification to Build Resilience

Caribbean Community (CARICOM) Secretary-General Carla Barnett has called for urgent economic diversification to reduce the region’s reliance on commodities, energy, and tourism amid mounting global trade uncertainty.

Speaking at the International Trade and Investment Conference in Georgetown, Guyana, Barnett highlighted the bloc’s structural vulnerabilities. Despite merchandise exports doubling to over US$39 billion in five years, the 2025 trade deficit lingered at US$3.3 billion, driven by heavy imports of food and capital equipment. Similarly, the US$7.2 billion services surplus in 2024 was overwhelmingly reliant on travel, while foreign direct investment stagnated at roughly US$4 billion annually.

To counter these concentration risks, Barnett emphasized deepening regional integration via the CARICOM Single Market and Economy (CSME). Strategic priorities include a unified regional industrial policy, expanded capital markets, and intra-regional tax coordination.

Externally, CARICOM is cultivating trade ties with Colombia, Brazil, India, and the African Union, while leveraging restored Caribbean Basin Initiative preferences. Long-term growth, Barnett noted, hinges on high-quality investment in agribusiness, renewable energy, and logistics to transform the region from a commodity-dependent bloc into a resilient, integrated market.