ABSTRACT
This chapter reviews post-war development strategies in Caribbean Community (CARICOM), outlines important features of the new trade environment, and presents strategic options for CARICOM. Trade in services accounts for an increasing share of world trade. This structural change in world trade is changing the determinants of competitive advantage. The new trade environment presents formidable challenges and dilemmas for the small vulnerable states of the CARICOM. The intensified competition generated by multilateral trade liberalisation and the emergence of regional trade blocs is increasing the risk of economic marginalisation of CARICOM states. The preferential trade arrangements that have supported the region's inefficient industries are being eroded by multilateral trade liberalisation. In addition, the region is involved in negotiations for free trade within the Free Trade Area of the Americas (FTAA) and with the European Union. Membership of regional blocs like the proposed FTAA will require significant adjustment on the part of CARICOM states, and will entail further erosion of policy autonomy.
