Economic Integration

Economic integration is both a pillar and a core objective of the Caribbean Community (CARICOM), grounded in Article 6 of the Revised Treaty of Chaguaramas. The Treaty identifies accelerated, coordinated and sustained economic development and convergence, full employment of labour and other factors of production, and the organisation for increased production and productivity among the fundamental goals of the Community. The primary vehicle for advancing economic integration is CARICOM’s flagship initiative, the CARICOM Single Market and Economy (CSME).
The Single Market component of the CSME is centred on the removal of trade barriers among Member States, the free movement of eligible categories of workers, and the right of establishment for businesses across the Community. While the full free movement of labour, achieved by 4 Member States in 2025, remains the goal, eligible categories of workers are being expanded to facilitate trade in services.  The Single Economy component envisages deeper integration through the harmonisation of macroeconomic policies and enhanced fiscal coordination, among other measures.
Several critical economic sectors have been identified as central to achieving effective economic integration within CARICOM:

Agriculture
As a key sector in most CARICOM Member States, agriculture remains central to the Region’s development agenda. The sector is guided by the Vision 25x25+5 initiative, which aims to reduce the Community’s food import bill by 25 per cent by 2030. This objective is to be achieved through increased regional agricultural production, improved intra-regional trade, and the creation of sustainable economic opportunities, with a focus on priority products, climate-smart agricultural practices, and strategic investments in transport, storage, and other supporting infrastructure.

Tourism
Tourism is the leading industry in many CARICOM countries and holds significant economic importance for the integration process. The sustainability of the sector is particularly critical for small, ecologically fragile states within the Community. Key areas of focus include regional tourism marketing, tourism product development, regional air transport, and supportive financial and investment policies. Increasing emphasis is also placed on strengthening linkages between tourism and other productive sectors, including agriculture, entertainment, and manufacturing, to maximise regional value-added.

Transportation
Safe, efficient, and cost-effective transportation is a fundamental element of CARICOM’s integration architecture, given the geographic dispersion of Member States and their reliance on maritime and air links. Transportation is essential to facilitating the movement of people, goods, and services, and to supporting key industries such as tourism and agriculture. The sector has assumed increasing importance in the Region’s development, with instruments such as the Multilateral Air Services Agreement (MASA) providing a framework to foster competition and entrepreneurial development in air services. Maritime transportation is also a critical component of Vision 25x25+5, and steps are being taken to operationalise dedicated regional ferry services to facilitate easier movement of goods, alongside ongoing work to establish the necessary regulatory and administrative arrangements.

Industry
The development of industry, particularly manufacturing, has long been a priority of CARICOM. Article 52 of the Revised Treaty provides for the establishment of a Community Industrial Policy, and in 1985 Heads of Government approved the CARICOM Industrial Programming Scheme, which became effective in 1990. The Scheme sought to promote the allocation and establishment of industries across the Community and to encourage increased use of regional raw materials. Current efforts are focused on advancing industrial development through the CARICOM Industrial Policy and Strategy, which is entering the implementation phase after approved by the HGC. This comprehensive framework aims to accelerate regional industrialisation, diversify economies, and build resilience by targeting twelve priority sectors and seven cross-cutting enablers. In the context of the evolving global environment, the Policy and Strategy will position the Region to deepen economic diversification, strengthen internationally competitive production of goods and services, and foster sustainable growth and prosperity.