Import diversification can save Caricom States over $US 1-billion annually- Report

The Caribbean Community Private Sector Organisation (CPSO) has estimated that CARICOM Member States could achieve annual savings of US$1.3 billion by diversifying their import sources away from the United States, particularly as escalating reciprocal tariffs increase costs and expand the regional trade deficit.

The region currently serves as the US’s third-largest import partner. Nearly 70% of final imported goods—valued at US$7.7 billion—originates from the US, the CPSO said.

These findings were presented on September, 10, 2025 during a hybrid forum titled “De-risking CSME

Imports: Examining the Scope for Goods Market Fulfillment from Non-Traditional Sources.”

The event was hosted by the CPSO in collaboration with the Eastern Caribbean Central Bank (ECCB) at the Bank’s Headquarters in St. Kitts and Nevis.

CPSO CEO and Technical Director, Dr. Patrick Antoine, presented findings from a comprehensive study revealing troubling trends in the Region’s goods trade deficit with the United States. The deficit increased by approximately US$200 million between 2022 and 2023, followed by an additional US$300 million increase from 2023 to 2024. Projections indicate a further US$500 million expansion between 2024 and 2025, even without considering the tariff impacts.

The new tariff regime, imposing 10% to 15% duties on previously duty-free goods, will drive costs upward by a significant degree. The study projects that with the implementation by the US of 15% reciprocal tariffs on Trinidad and Tobago and Guyana in July, the region’s projected export revenue loss would increase to US$653.6 million.

“While trade openness supports economic activity and consumer welfare, over-dependence on a single source of imports clearly does not benefit us,” Dr. Antoine emphasized.

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