Abstract:
The recent trade wars among the G7 countries may have begun to shift the world trading
structure with significant consequences for international cooperation in the areas science and
technology. International trade wars not only limit the access, through tariffs, to goods and
services but also the technologies that embody those goods. Small developing countries in the
Caribbean that has vested interest in the prosperity of the US, given their historical legacy,
primary source of collaborative projects and the hub for Caribbean goods are likely to be the
most affected. As the WTO agreements prevent the discrimination between trading partners,
the surge in tariffs are not exclusive to China and is likely to be applied in developing countries.
The ongoing tug-of-war between the US and China could have drastic implications for
struggling Caribbean economies that see them as engines of growth and development. In this
paper, we look at the relevance of CARICOM in progressing towards an innovative
powerhouse for the Caribbean countries in an uncertain environment of post-Trump and post-
Brexit. The paper is divided into two sections. The first deals with CARICOM exports and
imports as well as their important trading partners. The other section complements by analyzing
the different sources of FDI, and international agreements. In the paper, we argue that the trade
war can act as a catalyst for Caribbean countries in not just diversifying their exports, but also
looking towards emerging markets in the global south. We further propose that widening of
regional cooperation by CARICOM with other intergovernmental organizations can cushion
the effects of disruptive global problems like the international trade war.
