The Tribune

By EARYEL BOWLEG

Tribune Staff Reporter

ebowleg@tribunemedia.net

CARICOM has launched a comprehensive review of the region’s trade relations with the United States as Caribbean leaders brace for potential challenges stemming from shifting US trade policies.

Jamaican Prime Minister Andrew Holness described the situation as a “grave concern”, stressing the need for the region to be prepared.

The announcement came during the 48th Regular Meeting of the Heads of Government of the Caribbean Community, held in Barbados on Friday.

The review, expected to be completed within three to four months, will assess the possible effects of US trade policy changes and provide a policy framework to guide regional governments.

“Many businesses have reached out. The private sector is indeed concerned,” Mr Holness said. “I believe that the posture of CARICOM is that we must be prepared.”

However, he cautioned against panic, noting that while disruptions are possible, policy shifts may also present new regional opportunities.

CARICOM’s trade negotiation office is leading the review, analysing risks and advising governments on how best to structure trade policies to protect regional interests while capitalising on any emerging benefits.

Mr Holness acknowledged speculation about potential US tariffs on Caribbean exports but said no official announcements had been made. The review will examine the possible fallout should such measures be introduced.

When asked whether CARICOM leaders plan to engage directly with top US officials, Barbados Prime Minister and CARICOM Chair Mia Mottley confirmed that discussions are ongoing with the US Special Envoy for Latin America and the Caribbean. She anticipates a high-level meeting in the near future.

Meanwhile, Guyana’s President Mohamed Irfaan Ali highlighted the challenges of rising food prices, which have been exacerbated by global market fluctuations.

He pointed out that in the past year, the cost of cereals, meat, dairy, vegetable oil, and raw sugar has surged — putting further pressure on Caribbean economies that depend heavily on imports.

He warned that 2025 could bring further instability due to climate-related disruptions, rising transportation and logistics costs, and uncertainties surrounding trade regulations.

He cited the recent 20 percent decline in US egg production following an outbreak of bird flu, which led to price increases.

“We’re discussing the impact of these challenges for the region, and important for us is to look at the full supply chain, to look at alternative supply routes, and to look at ways in which we can enhance and integrate our capacity and capability to withstand what could be a major shock in the global market,” he said.

He warned that if Brazil — another key food supplier — experiences similar disruptions, the region would face higher prices and supply shortages.

“These are the challenges that we will face, at least in the first half of this year, and we must be able to plan a strategy that would allow us to withstand them,” he said.