Caribbean economist and macroeconomic adviser Dr Kari Grenade is urging Caribbean countries to take immediate and future actions to liberate the region “from the bondage of economic insecurity”.
This includes lobbying at the highest level for changes to the proposed United States (US) policies which will hurt Caribbean economies, actively exploring alternative markets from which goods can be imported, as well as alternative trading partners, supply chains, and delivery routes, and increasing intra-regional trade.
Countries in the region should also establish “a full-fledged Caribbean economic union by 2045”, including the eventual use of a single currency.
The Grenada-born economist made her recommendations in a recent analysis titled Economic Shock And Awe: How Can The Caribbean Respond?, published after United States President Donald Trump announced increased tariffs, including a ten per cent tariff for most Caribbean countries.
“Caribbean policy makers must pool expertise and consolidate negotiation strategies to engage high-level counterparts in the US with a view to making the case for exemptions and waivers for the region in relation to the proposed million-dollar fee on Chinese vessels docking in US ports, given the potentially devastating impacts on cruise tourism as well as goods exports,” she suggested.
“The region must also actively explore alternative markets from which goods can be imported, as well as alternative trading partners, supply chains, and delivery routes. Increasing intra-regional trade and promoting self-sufficiency in certain products such as poultry, livestock, and coffins for example must be prioritised.
“Additionally, the feasibility of establishing formalised strategic alliances between importing firms in the areas of bulk purchasing and consolidated shipping should also be actively explored,” she stated.
Grenade also called on Caribbean governments to “deal frontally and potently to cushion the impact of a possible stagflationary environment (low growth and high inflation)”.
“The region has to start contemplating bold actions and the transformative shifts in policies, practices, institutions, and mindsets that will be required for full economic union. Policymakers must start laying the groundwork soonest,” Grenade said. (SC)
