ABSTRACT
This chapter deals with the implications for the small states in the Caribbean of the proposals for a Free Trade Area of the Americas (FTAA) made at the 1994 Miami Summit. It provides a brief summary of the principal economic constraints imposed on small states by their size and the implications for their growth and development. The chapter outlines the orthodox theory of economic integration and the principal economic and political costs and benefits that arise from participation in regional trade agreements (RTAs). This is followed by an analysis of the theory of economic integration as it pertains to small states as well as a discussion of the implications of the critical economic constraints identified. The chapter considers briefly the past participation and experience of small states in RTAs. It assesses the likely effects of the participation of small Caribbean states in the FTAA and the key policy choices that they face.
