The Trade and Economic Cooperation Agreement Between the Government of Canada and the Governments of the Member States of the Caribbean Common Market known as ("CARIBCAN") and ("Commonwealth Caribbean Countries Tariff program") is a

Canadian government The Government of Canada (), formally His Majesty's Government (), is the body responsible for the federal administration of Canada. The term ''Government of Canada'' refers specifically to the executive, which includes ministers of the Crown ( ...

non-reciprocal economic and trade development assistance programme established under the Customs Tariff Act, in 1986 by the

Parliament of Canada The Parliament of Canada () is the Canadian federalism, federal legislature of Canada. The Monarchy of Canada, Crown, along with two chambers: the Senate of Canada, Senate and the House of Commons of Canada, House of Commons, form the Bicameral ...

. The agreement was created to promote

trade Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market. Traders generally negotiate through a medium of cr ...

investment Investment is traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broade ...

and provide industrial cooperation through the preferential access of

duty-free A duty-free shop or store is a retail outlet whose goods are exempt from the payment of certain local or national taxes and duties, on the requirement that the goods will be sold to travelers who will take them out of the country, who will ...

goods from the countries of the Commonwealth-Caribbean to the Canadian market. The programme operates with a waiver from the

World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization headquartered in Geneva, Switzerland that regulates and facilitates international trade. Governments use the organization to establish, revise, and enforce the rules that g ...

, which normally prohibits unilateral programmes on preferential market access between countries. Features of the agreement also include: seminars for businesspersons of the

Caribbean The Caribbean ( , ; ; ; ) is a region in the middle of the Americas centered around the Caribbean Sea in the Atlantic Ocean, North Atlantic Ocean, mostly overlapping with the West Indies. Bordered by North America to the north, Central America ...

region to learn more about developing a market for their products in the Canadian market, a programme to expand exports capabilities by Caribbean businesses and also the assistance of

Industry Canada Innovation, Science and Economic Development Canada (ISED; ; )''Innovation, Science and Economic Development Canada'' is the applied title under the Federal Identity Program; the legal title is Department of Industry (). is a department of the G ...

in the Caribbean region for regional trade commissioners with the aim of trade promotion efforts to the Canadian market. According to the

Global Affairs Canada Global Affairs Canada (GAC; ; AMC)''Global Affairs Canada'' is the applied title under the Federal Identity Program; the legal title is Department of Foreign Affairs, Trade and Development (). is the department of the Government of Canada that ...

: the "CARIBCAN's basic objectives, then, are to enhance the Commonwealth Caribbean's existing trade and export earnings; improve the trade and economic development prospects of the region; promote new investment opportunities; and encourage enhanced economic integration and cooperation within the region." ; Exempted items The CARIBCAN agreement does not cover duty-free access for the following items: * footwear, * luggage and handbags, * leather garments, and * lubricating oils Other items are eligible for duty-free status if they can be certified as being either grown, manufactured or produced within the Commonwealth-Caribbean or Canada. The definition to be designated as Caribbean as its origin is; 'having a minimum input of 60 percent of the ex-factory price of the goods (including overhead and reasonable profits) originating within any of the Commonwealth Caribbean countries (or Canada). The goods must also be exported directly from the Caribbean to Canada with no other work carried out at foreign

transshipment Transshipment, trans-shipment or transhipment is the shipment of goods or containers to an intermediate destination, then to another destination. One possible reason for transshipment is to change the means of transport during the journey (e.g. ...

points. ; Countries covered under CARIBCAN *

Canada Canada is a country in North America. Its Provinces and territories of Canada, ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, making it the world's List of coun ...

Anguilla Anguilla is a British Overseas Territories, British Overseas Territory in the Caribbean. It is one of the most northerly of the Leeward Islands in the Lesser Antilles, lying east of Puerto Rico and the Virgin Islands and directly north of Sa ...

Antigua and Barbuda Antigua and Barbuda is a Sovereign state, sovereign archipelagic country composed of Antigua, Barbuda, and List of islands of Antigua and Barbuda, numerous other small islands. Antigua and Barbuda has a total area of 440 km2 (170 sq mi), ...

, the

Bahamas The Bahamas, officially the Commonwealth of The Bahamas, is an archipelagic and island country within the Lucayan Archipelago of the Atlantic Ocean. It contains 97 per cent of the archipelago's land area and 88 per cent of its population. ...

Bermuda Bermuda is a British Overseas Territories, British Overseas Territory in the Atlantic Ocean, North Atlantic Ocean. The closest land outside the territory is in the American state of North Carolina, about to the west-northwest. Bermuda is an ...

Barbados Barbados, officially the Republic of Barbados, is an island country in the Atlantic Ocean. It is part of the Lesser Antilles of the West Indies and the easternmost island of the Caribbean region. It lies on the boundary of the South American ...

Belize Belize is a country on the north-eastern coast of Central America. It is bordered by Mexico to the north, the Caribbean Sea to the east, and Guatemala to the west and south. It also shares a maritime boundary with Honduras to the southeast. P ...

, the

British Virgin Islands The British Virgin Islands (BVI), officially the Virgin Islands, are a British Overseas Territories, British Overseas Territory in the Caribbean, to the east of Puerto Rico and the United States Virgin Islands, US Virgin Islands and north-west ...

, the

Cayman Islands The Cayman Islands () is a self-governing British Overseas Territories, British Overseas Territory, and the largest by population. The territory comprises the three islands of Grand Cayman, Cayman Brac and Little Cayman, which are located so ...

, The

Commonwealth of Dominica Dominica, officially the Commonwealth of Dominica, is an island country in the Caribbean. It is part of the Windward Islands chain in the Lesser Antilles archipelago in the Caribbean Sea. The capital, Roseau, is located on the western side of t ...

Grenada Grenada is an island country of the West Indies in the eastern Caribbean Sea. The southernmost of the Windward Islands, Grenada is directly south of Saint Vincent and the Grenadines and about north of Trinidad and Tobago, Trinidad and the So ...

, the Co-operative Republic of

Guyana Guyana, officially the Co-operative Republic of Guyana, is a country on the northern coast of South America, part of the historic British West Indies. entry "Guyana" Georgetown, Guyana, Georgetown is the capital of Guyana and is also the co ...

Jamaica Jamaica is an island country in the Caribbean Sea and the West Indies. At , it is the third-largest island—after Cuba and Hispaniola—of the Greater Antilles and the Caribbean. Jamaica lies about south of Cuba, west of Hispaniola (the is ...

Montserrat Montserrat ( , ) is a British Overseas Territories, British Overseas Territory in the Caribbean. It is part of the Leeward Islands, the northern portion of the Lesser Antilles chain of the West Indies. Montserrat is about long and wide, wit ...

Saint Kitts and Nevis Saint Kitts and Nevis, officially the Federation of Saint Christopher (St Kitts) and Nevis, is an island country consisting of the two islands of Saint Kitts and Nevis, both located in the West Indies, in the Leeward Islands chain of the Less ...

Saint Lucia Saint Lucia is an island country of the West Indies in the eastern Caribbean. Part of the Windward Islands of the Lesser Antilles, it is located north/northeast of the island of Saint Vincent (Saint Vincent and the Grenadines), Saint Vincent ...

Saint Vincent and the Grenadines Saint Vincent and the Grenadines, sometimes known simply as Saint Vincent or SVG, is an island country in the eastern Caribbean. It is located in the southeast Windward Islands of the Lesser Antilles, which lie in the West Indies, at the south ...

, the Republic of

Trinidad and Tobago Trinidad and Tobago, officially the Republic of Trinidad and Tobago, is the southernmost island country in the Caribbean, comprising the main islands of Trinidad and Tobago, along with several List of islands of Trinidad and Tobago, smaller i ...

, and the

Turks and Caicos Islands The Turks and Caicos Islands (abbreviated TCI; and ) are a British Overseas Territory consisting of the larger Caicos Islands and smaller Turks Islands, two groups of tropical islands in the Lucayan Archipelago of the Atlantic Ocean and no ...

Impact

Research in 1992 indicated that CARIBCAN, Canada's preferential trade agreement with the Commonwealth Caribbean, had limited success in significantly expanding trade between the two regions. While Canada had historically been a key trading partner for the West Indies, its share of Caribbean exports and imports had declined over the decades due to factors such as trade barriers, import substitution policies, and shifting economic priorities. Although CARIBCAN, established in 1986, provided duty-free access for most Caribbean products, it had not significantly increased trade volumes or encouraged diversification beyond traditional commodities. The agreement faced criticism for excluding key labour-intensive industries such as textiles and footwear, though Canada had made some adjustments in response. By 1992, Canadian exports to the region remained largely concentrated in agricultural and resource-based goods, with Jamaica, Trinidad and Tobago, and the Bahamas as the primary trading partners. Despite CARIBCAN's modest impact on trade, Canada continued to have a strong presence in the Caribbean, primarily through tourism, investment, and development aid rather than merchandise trade.

Future

In 2023, Canada announced that the Commonwealth Caribbean Countries Tariff program (CCCT) would be expanded to include textiles and apparel products, which took effect on January 1, 2025. The

provided approval for CARIBCAN to be extended until December 2033. The programme was originally slated to be replaced by a full composite

Free Trade Agreement A free trade agreement (FTA) or treaty is an agreement according to international law to form a free-trade area between the cooperating state (polity), states. There are two types of trade agreements: Bilateralism, bilateral and Multilateralism, m ...

between CARICOM members and Canada, with reciprocal equal access for Canadian companies to the Caribbean market as well, but negotiations were abandoned in May 2015 with no plans to restart.

References

External link

Canada and the Caribbean Community (CARICOM)
Canada–Caribbean relations Foreign relations of Canada 1986 in Canada Organisation of Eastern Caribbean States Caribbean Community

Impact

Future

References

Further reading

See also

External link