How Caribbean community could save $1.3bn by shifting imports away from the U.S
The Caribbean Community (CARICOM) could unlock annual savings of US$1.3 billion if member states diversify their import sources beyond the United States, according to new estimates from the CARICOM Private Sector Organisation (CPSO).
The findings were presented during a hybrid forum titled “Derisking CSME Imports: Examining the Scope for Goods Market Fulfilment from Non-Traditional Sources,” hosted in collaboration with the Eastern Caribbean Central Bank (ECCB) in St Kitts and Nevis.
Currently, nearly 70 percent of CARICOM’s final imported goods, valued at US$7.7 billion, come from the United States, making the region Washington’s third-largest import partner. While this reliance has long provided stability, it has also deepened CARICOM’s trade imbalance with the U.S., particularly as reciprocal tariffs drive up costs.
CPSO’s study revealed that the goods trade deficit between CARICOM and the United States grew by about US$200 million from 2022 to 2023, followed by an additional US$300 million in 2024.
Dr. Patrick Antoine, CEO and technical director of the CPSO, argued that rebalancing trade through non-traditional import sources could help buffer CARICOM economies from mounting U.S.-linked costs. Exploring markets in Asia, Latin America, and Africa would not only reduce dependence on a single partner but also strengthen food and goods security across the region.
“By diversifying supply chains, CARICOM states can cut costs, reduce vulnerabilities, and capture new opportunities for regional integration,” Antoine told the forum.
Projections indicate the deficit could expand by another US$500 million by 2025, even before factoring in tariff hikes.
This story is written and edited by the Global South World team, you can contact us here.
