The slide presentation is about Canada influence in the Caribbean economies, specially in the CARICOM countries

1. INTERNATIONAL RELATIONS
OF THE CARIBBEAN
Canada and the Caribbean
Dr. Jacqueline LAGUARDIA MARTINEZ

3. • History and cultural heritage as colonial
possessions
• First colonies in Canada were founded in
the early XVIII century
• Major links with the Anglophone
Caribbean and, in a lesser extent, with
the French Caribbean
Canada and the Caribbean

4. North America in 1750

5. Trade and military links
Port of Halifax
Its naval facilities
served the British
Navy to secure
colonial control in
the Caribbean
islands and as a
main door for
Terranova cod
exports to the
British possessions
in the Caribbean
and to Cuba

6. Triangular Trade

7. Early XX Century: Poor trade exchange
• USA hegemony in the continent: the Caribbean is
perceived as the next frontier
• Canada is immersed in a process of national
construction
• Despite the benefits of the common relation due to
the Preferential Tariff Regime within the Britain
Empire (1898, 1900, 1904, 1907) and a Trade
Agreement between Canada and the West Indies
from 1920, the Caribbean-Canada trade was
insignificant

8. • The Bank of Nova Scotia opened its first
international branch outside the U.S. in 1889, in
Kingston, Jamaica
• In 1926 two-thirds of Canadian branches abroad
were based in the Caribbean
• Most of these branches were located outside the
Anglophone Caribbean, in territories of major
interest to the USA: Cuba, Haiti, Puerto Rico and
the Dominican Republic (144 branches, only 44 in
the USA)
But significant financial presence

9. Prime Minister Lester Pearson (1963-68)
• Incorporation of the new independent states in
the Caribbean to the Commonwealth
• Traveled the Caribbean and invite the Caribbean
states to the Conference in Ottawa in 1966:
a.To stimulate the relations with Canada
b.To promote trade (Commonwealth Caribbean
Canada Trade and Economic Committee, First
Meeting in February 1967 in Saint Lucia)
c. To channel aid funds to the Caribbean

10. Pierre Elliot Trudeau (1968- 1984)
• Considered the Father of the Modern Canada
• New principles and practice of the Canadian foreign
policy (independent from the USA and UK): Third
Option / North-South instead of East-West
• 1970: Foreign Policy for Canadians
a. Europe, Latin American and the Caribbean
b.International Aid and Cooperation: creation of the
Canadian International Development Agency (CIDA)
and the International Research Development Center
(IRDC)
c. Middle power: Canada as “the largest of the smallest
powers and the smallest of large powers”

11. Trudeau and the Caribbean
• The Caribbean is a priority in Canada foreign policy
• Special relation with leaders in the area: Manley and
Fidel
• Increasing aid funds: transport, public healthcare,
scholarships
• Military cooperation: training programs (coastguards,
military) and participation in the reconstruction of the
Guyanese police force
• Opened Canada to Caribbean migration when UK
enforced restrictions to receive Caribbean immigrants
• Canada joined the Caribbean Development Bank
• 1979: Trade and Economic Cooperation Agreement
(Conference Canada –CARICOM in Jamaica)

12. • Alignment with the USA (Middle Power?)
• Hemispheric projection (Open Regionalism)
• Cooperation in neo-liberal economic reform
• Main sectors:
a.Trade and economical relations (finance and
banking)
b.Democratic Governability
c. Security (40% drugs in Canada enters from the
Caribbean)
d.Disaster Management
Progressive changes since the late 80’s…

13. Mechanisms
• Regional organizations
• Bilateral relations
• Special Programs
• Cooperation for Development (facing the South-
South Cooperation)
• Caribbean diaspora in Canada
• Joint Trade and Economic Committee (JTEC)
• Canada-CARICOM Summits (last in 2007)

14. Canada’s interests on the Caribbean
• To promote national interests
• To avoid frictions with the USA
• To promote economical relations (trade and
investment in the mining sector, banking)
• Main pillars of Canada’s International
Development Cooperation
1.Democratic Governability
2.Prosperity – Economic Cooperation (Single
Market)
3.Security (Natural Disasters)

15. Source: Antonio Romero “Relaciones Económicas…” in Conexión Canadá-Caribe,

16. Main actions in the XXI Century
• July, 2007: Announcement of 600 millions CAN dollars for
ten years as regional aid and negotiate a FTA
• Increased presence in Haiti (no debt, cuota in the CDB)
• 20 millones CAN dollars assignation for the Program of
Extreme Events Risk Management in the Caribbean
• Antidrug Program
• Creation of the Caribbean Public Health Agency (CARPHA)
in 2011
• Inter American Regional Program (Economic Growth and
Children and Youth)
• Announcement of representing the Caribbean interests in
the G-20 Meetings

17. Canada-CARICOM: Exports and Imports
Canada
Exports
2006 2007 2008 2009 2010
Rest of the
World (%)
99,85 99,84 99,81 99,79 99,80
CARICOM (%) 0,15 0,16 0,19 0,21 0,20
CARICOM
(thousands
USD)
593.044 676.835 854.591 661.379 755.256
Canada
Imports
2006 2007 2008 2009 2010
Rest of the
World (%)
99,71 99,64 99,63 99,62 99,60
CARICOM (%) 0,29 0,36 0,37 0,38 0,40
CARICOM
(thousands
USD)
1.020.718 1.373.703 1.531.254 1.226.222 1.570.445
Source: Antonio Romero “Relaciones Económicas…” in Conexión Canadá-Caribe,

18. Canada CARICOM: Trade Balance
(thousands USD)

19. Canada Export Destinations in CARICOM (%) 2010
Source: Antonio Romero “Relaciones Económicas…” in Conexión Canadá-Caribe,

20. Canada Import Origins in CARICOM (%) 2010
Source: Antonio Romero “Relaciones Económicas…” in Conexión Canadá-Caribe,

21. CANADA-CARICOM Trade
• Canada exports: manufactures, foodstuffs,
and processed materials (newsprint,
meslin /wheat, medicaments, telephone
equipment, salt fish, copper wire, electrical
equipment, potatoes)
• Canada imports: gold, petroleum and
alumina (75 % of the total). Also ferrous
products, rum, roots and tubers, beer, bakery
products, liqueurs, sauces and condiments,
nutmeg, and frozen fish

22. Canada – CARICOM trade instruments
• 1979: CARICOM-Canada Trade and Economic Co-
operation Agreement and its Protocols
• 1998: Protocol on Rum
• 1985: Caribbean-Canada Trade Agreement
(CARIBCAN): grants unilateral duty free access to
eligible goods from beneficiary countries in the
Commonwealth Caribbean (waiver of WTO)
• General Preferential Tariff of Canada
• WTO Most Favored Nation (84% CARICOM
exports!!!!!! in 2007)
• Negotiation of a FTA!!!

23. Canada – CARICOM FTA: issues to considered
• Major implementation costs for CARICOM
• Canada exports to CARICOM duty free affects the
fiscal income and could replace domestic producers
in sector where Canada has more competitiveness
• Services: tourism and international financial
services do not need an FTA
• New framework for bilateral economic, political,
social and cultural relations (not only aid but
development)
• The EU would be entitled to invoke the EPA’s MFN
clause to demand similar treatment than Canada

24. Pushing in the negotiations for:
• Duty free facilities for agricultural products, clothing, rum,
cultural and creative services, workers, etc.
• More generous rules of origin (only 60% in CARIBCAN)
• Advocate in favor of economic and sustainable
development and the validity of the principle of special and
differential treatment through:
• Asymmetrical obligations in favor of CARICOM states;
• Progressive liberalization of goods and services trade; and
• Cooperation including technical and financial assistance to
facilitate adjustment to liberalization, and trade facilitation,
notably to build capacity for exports by the predominantly
small firms in the CARICOM region

25. Source: Antonio Romero “Relaciones Económicas…” in Conexión Canadá-Caribe,

26. Source: Antonio Romero “Relaciones Económicas…” in Conexión Canadá-Caribe,

27. Canadian Investments
• Bilateral Foreign Investment Protection
Agreements (FIPA)
Trinidad & Tobago (July, 1996)
Barbados (January, 1997)
• November 2008, Canada CARICOM Business
Forum: Few CARICOM firms attended

28. Limits to Canada-Caribbean relations
The close relations with the USA: Tension between
sovereignty and strategic interests
•40% of the GDP generation depends on the
economical links with the USA)
World Economic Crisis
•More selectivity criteria to aid resources allocation
•More selectivity in accepting immigrants (qualified
work force)
Tendency to promote “assistancialism” rather than
capacity building

29. Bibliography in English
1. Ramesh Chaitoo, “Time to Rethink and Re-
energize Canada-CARICOM Relations”, in
Caribbean Journal of International Relations &
Diplomacy, Vol. 1, No. 1, February 2013: pp.39-67
2. Norman Girvan, The Caricom-Canada FTA: What’s
the hurry?, March 23, 2009
3. Winston H. Griffith, “CARICOM Countries and the
Caribbean Basin Initiative”, in Latin American
Perspectives, Vol. 17, No. 1, Caribbean Crisis and
Global Restructuring. (Winter, 1990), pp. 33-54.