Introduction

• Author: Edwin Laurent
• Pages: 11-14

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Introduction

The world of international trade can appear abstract and far removed

from everyday life. The very terms used, the CSME, EPAs, the FTAA, might

seem to mystify rather than enlighten. Many people are therefore content to

ignore trade negotiations, disputes and agreements, viewing those matters as

concerning only Governments and big businesses. Increasingly, however, these

processes are defining not only commercial and trading relations among

countries, but also economic activities within countries themselves. Quite

ominously, they constrain governments’ flexibility on an increasing range of

economic policy issues.

In the 21st century no country can expect to be an “island unto itself”,

shut off from and indifferent to the external economic environment. This is

particularly true in the Caribbean Community (CARICOM)1, whose

Members’ economies have, from earliest colonial times, been open to and

reliant on international trade. The quality of life of their people, their security

and standard of living have always depended upon the international situation

and external developments. Rather than producing for themselves the things

that they need, these countries have earned their livelihood through producing

goods for sale abroad; initially a variety of commodities, ranging from cane

sugar, rum, minerals, rice and bananas, to light manufactured goods, and

now, increasingly, to the provision of services for foreigners, principally

tourism. Their exports of goods have been principally to Europe, the Caribbean

and the USA. Their imports are more varied, coming from the USA, Japan,

Europe, Latin America, China and several other sources. Services are sold

principally to North America and Europe. The income from the sale or export

of the narrow range of goods and services that they produce is used to purchase

INTRODUCTION