Challenges to Caribbean Integration

Trading among the Caribbean countries have become costly. This reduces import and export of
the products among these countries, affecting consumers choices. In order for the Caribbean
region to eliminate these challenges, the process of economic integration was developed.
According to Vaidya (2023) “Economic integration refers to the collaboration of two or more
countries to limit or eliminate trade restrictions and encourage political and economic
cooperation.” This process allows regional markets to trade their resources more steadily with
less government intervention. The Caribbean integration faces many challenges upon its
execution.
The challenges faced by the Caribbean integration range from the effects of natural disasters, a
shortage of resources, complex access to financing, and challenges in advertising produces in the
dynamic world, ack of enough capital to do trade, divisions among the states, lack of common
market, poor road networks etc. (choose three from this list). However, the challenges of
economic integration can be overcome through intra-regional trade and policy coordination or
agreements which will help regional small economies build greater resilience and scale, and
strengthen their bargaining power at the regional level. Two kinds of these agreements are
Bilateral and Multilateral agreements. Bilateral agreement is an agreement between two parties
or countries whereas multilateral agreement involves many countries (Law Teacher, 2019).
Bilateral agreements bind two countries together resulting in their mutual agreement on various
trading activities. Multilateral allows buyers and sellers have vast market to be served and to buy
their goods from.
Despite these agreements, the geographical characteristics of the region may bean obstacle to
integration. Two of these obstacles are Trade Diversion and Employment shifts and reduction.
Trade diversion may divert small countries’ economies and land and contribute to member
countries. They will trade among themselves only and not with other countries that are striving in
the trading business. With Employment shifts and reduction, member States can shift production
to their cheap labor markets causing workers to relocate to get better jobs and wages.
To ensure the success of regional businesses, citizens can contribute. Three ways in which they
can do so are to invest in invest in local and regional business, become great entrepreneurs, and
engagement in collaboration. In investing in local and regional business, persons will support
local small businesses to expand. In becoming great entrepreneurs, persons will own business
and create employments for others, who will in turn make their businesses successful. By their
engagement in collaboration, businesses can support other business by sharing means of
overcoming challenges and keeping the business alive.

As can be seen, greater cooperation is the key to overcome Challenges to Caribbean Integration.
This will ensure the furthering of regional integration in the Caribbean.
Vaidya D. (2023) https://www.wallstreetmojo.com/economic-integration/

Law Teacher (2019) https://www.lawteacher.net/free-law-essays/international-law/international-

trade-agreements-eu-bilateral-or-multilateral-international-law-essay.php