Caribbean Leaders Summit Addresses Regional Freight
Caribbean leaders have gathered for a summit to address regional freight infrastructure, tourism, and the impact of evolving US policy. The event signals increased strategic attention on US-Caribbean trade corridors. Outcomes from the summit are expected to influence customs processes, trade facilitation, and infrastructure investment in the region.
- At the 49th CARICOM Summit in July 2025, Barbados Prime Minister Mia Mottley called for a "regional freight revolution," announcing that two member states were in advanced negotiations to acquire cargo aircraft to improve the movement of essential goods. A private-sector-led regional ferry project was also presented as a way to democratize inter-island travel and transport. - Intra-regional trade among CARICOM nations remains stagnant, accounting for only 13.9% of the bloc's total exports, with the majority (86.1%) directed to external markets. High shipping costs, inefficient port services, and customs delays are major barriers, sometimes making it more expensive to ship goods to a neighboring island than to countries outside the region. - A significant challenge for Caribbean logistics is the one-way flow of commercial goods; cargo ships often travel south to the islands fully loaded but return north empty. This imbalance makes northbound shipping prohibitively expensive, with Caribbean shipping rates estimated to be three times higher than the cost of moving a container across the Pacific. - A recent U.S. Supreme Court decision on February 20, 2026, struck down the "Liberation Day" emergency tariffs imposed in 2025, which had subjected many Caribbean goods to a new 10% tariff, overriding previous duty-free access under the Caribbean Basin Initiative. However, the Trump administration responded by implementing a new 10% global tariff under the Trade Act of 1974, creating continued uncertainty for Caribbean exporters. - The World Bank's 2023 Logistics Performance Index ranked most Caribbean nations between 2.3 and 2.7 on a five-point scale, significantly below the European Union's average of 3.5. This reflects persistent challenges in the quality of trade and transport-related infrastructure and the efficiency of customs and border management. - Port infrastructure is a critical bottleneck, with port handling charges in the Caribbean estimated to be two to three times higher than at similar ports globally. These high costs are compounded by operational inefficiencies and competition for space between cruise ships and cargo vessels. - Leaders are exploring new trade partnerships beyond traditional corridors, including strengthening ties with Africa. A recent Africa-Caribbean summit focused on creating a unified trade framework to foster new economic relationships in sectors like fintech, agriculture, and renewable energy.
