The World Trade Organization (WTO) has granted Canada permission to extend the Caribbean-Canada trade agreement (Caribcan) until December 31, 2033.
According to a release from the Trade and Industry Ministry, Caribcan gives TT exporters access to more than 38 million Canadian consumers, a major number of whom are members of the Trinidad and Tobago diaspora.
As a result of the Caribcan agreement, Canada is now seen as an important commercial partner for TT, as evidenced by a rise in commerce between the two nations.
According to the announcement, exports to Canada were $405 million in 2016 and are expected to reach $936 million by 2022. TT was the single highest exporter to Canada among Caribcan beneficiaries in 2021.
Under the Caribcan arrangement, 98 percent of TT’s exports – methanol, rum, and biscuits – entered Canada duty-free that year, demonstrating its relevance in supporting export growth and diversification goals.
Caribcan is a non-reciprocal economic and trade development assistance program administered by the Canadian government to Commonwealth Caribbean countries and territories since 1986.
Due to the non-reciprocal nature of the agreement, Caribbean countries are not bound to grant duty-free access to Canadian exports. However, it gives duty-free access to the Canadian market for most commodities from Commonwealth Caribbean countries, including Trinidad and Tobago.
The goals are to increase Commonwealth Caribbean trade and export revenues, strengthen the region’s trade and economic growth prospects, promote new investment opportunities, and foster greater economic integration and cooperation.