Editorial | Advancing CARICOM

At their summit in Jamaica earlier this month, Caribbean Community (CARICOM) leaders implicitly acknowledged that given current global volatility and fragmentation, traditional strategies are no longer sufficient.

The new, and rapidly changing environment – including disruptions in supply chains, fluctuating commodity prices, and intensifying geopolitical competition – insists on a coordinated response by the region’s small and vulnerable economies.

It is not that CARICOM has achieved nothing in the more than 50 years since the 1973 Treaty of Chaguaramas that established the community. Moves towards transforming the group into a genuine single market; efforts at liberalising the movement of skilled labour in the region; and the inauguration of the Caribbean Court of Justice (CCJ), to whose civil and criminal jurisdiction some members have acceded as their apex court, are among the standout achievements.

However, overall advancement has often been impeded by political hesitancy, challenges in implementation, and fears over surrendering national autonomy. The Organization of Eastern Caribbean States (OECS) has demonstrated more consistent dedication to integration compared to the wider CARICOM group.

At Montego Bay, in keeping with what appears to be a new sense of urgency, four members – Belize, Barbados, Dominica, St Vincent and the Grenadines – utilised an amendment to the CARICOM treaty that allows a minimum number of agreeable participants to move ahead on initiatives, leaving room for others to catch up later – agreed to go full bore on the full free movement of each other’s citizens in their respective territories from October.

ADVANCED DISCUSSIONS

The Summit also advanced discussions on, among other things:

• expanding trade and cooperation with Africa, including plans for a CARICOM–Africa summit in September;

• the establishment of regional ferry services in the eastern and northern Caribbean; and

• the development of a telecommunications strategy.

Notable progress was achieved in formulating industrial, telecommunications and education policies and addressing digital vulnerabilities impacting youth.

In the context of post-pandemic realities, including climate crises, economic shocks, and shifting geopolitical alliances, the limitations faced by small states operating independently are increasingly evident. No individual Caribbean nation possesses the leverage to secure optimal trade agreements with major powers, or to effectively manage price volatility, or maintain self-sufficient supply chains. Therefore, a revitalised and effective integration project, particularly the realisation of the CARICOM Single Market and Economy (CSME), is essential.

The CSME, therefore, represents an economic necessity rather than merely an aspirational vision of unity. Its full implementation would enable key developments, including:

• free movement of capital to enhance regional investments, facilitate pension portability, and deepen financial markets:

• robust infrastructure to support the free movement of goods and services and enable producers to scale operations competitively;

• free movement of people across the entire community (not only the current signed-up members) to address labour market needs and skill gaps; and

• harmonised external policies, including unified tariffs, regional trade agreements, and coordinated engagement in multilateral forums.

Collectively, these elements position the CSME as both a mechanism for internal resilience and a vehicle for strengthening the region’s international negotiating power.

HINDERED CONSENSUS

Reluctance among political leaders to delegate authority to supranational institutions, coupled with apprehensions about disproportionate influence or benefits among member states, have hindered consensus and enforcement of agreed protocols. National interests frequently supersede collective commitments. Further, insufficient public engagement has led to limited popular understanding of integration as a tool for enhancing employment, healthcare, education, and climate security.

To address persistent inertia and propel tangible outcomes, several actions are recommended: Strengthening the Caribbean Development Fund (CDF) capital availability remains a critical constraint on regional development. Established under Article 158 of the Revised Treaty of Chaguaramas (2001), the CDF supports member states, particularly those identified as less developed, through concessional finance and technical assistance.

Although hampered by underfunding, the Fund has contributed to significant infrastructure and resilience projects, with recent partnerships (example, the Afreximbank) indicating its evolving role in sustainable development. Expanding the CDF, potentially through increased member contributions and diaspora bonds, could finance broader infrastructure initiatives, support joint ventures, and function as a financial stabiliser during crises. Enhanced collaboration between Afreximbank, the Caribbean Development Bank, and the CDF could be used to foster deeper economic and trade integration.

Regional digital integration, including common e-commerce standards, cross-border fintech solutions, and a shared cloud data infrastructure, offers a cost-effective and impactful avenue for convergence. Such integration would facilitate trade, improve tax administration, and empower small and medium-sized enterprises.

Greater support for institutions, especially the CARICOM Secretariat, is imperative. Effective integration requires strong institutional frameworks capable of dispute resolution, compliance enforcement, and technical standardisation.

Ultimately, integration extends beyond economic considerations; it encompasses regional agency and sovereignty. In isolation, Caribbean states have limited influence on the global stage; collectively, they possess greater negotiating power, the ability to establish standards reflecting their interests, and enhanced capacity to safeguard sovereignty in emerging areas such as artificial intelligence, climate adaptation, and digital governance.

The vision of a unified Caribbean economy will be realised when regional leadership redefines integration not as a relinquishment of control, but as an embracing of collaborative leadership. Current geopolitical realities affirm that regional integration is a pragmatic necessity for nations historically divided yet intrinsically connected. Proactive, collective action is now required.