Caribbean economies in the FTAA negotiations

Abstract

This chapter discusses the issue of special and differential treatment for small states, focusing on Caribbean economies in the context of the ongoing negotiations for the creation of a Free Trade Area of the Americas (FTAA). It discusses the threats and opportunities to small economies posed by their high dependence on international trade, referring to concerns regarding the Caribbean region's banana industry. The author argues that the threats to small states arising from liberalisation are extraordinary and therefore special and differential treatment for such states is justified, and explains the different forms in which such treatment can be realised. He suggests that CARICOM should make the case for asymmetric phased-in implementation of commitments under the FTAA and moreover, it should seek exemptions from tariff liberalisation for certain commodities.