Caribcan arrangement extended to 2033

Canada has got approval from the World Trade Organisation (WTO) to extend the Caribbean-Canada trade agreement (Caribcan) until December 31, 2033.

A release from the Trade and Industry Ministry said Caribcan grants TT’s exporters access to more than 38 million consumers in the Canadian market, a significant portion of which represents the Trinidad and Tobago diaspora in Canada.

With the Caribcan arrangement, Canada is now considered an important trading partner for TT, as seen by the increase in trade between the two countries.

The release added that in 2016, exports to Canada stood at $405 million and has since increased to $936 million in 2022. In 2021, TT was recorded as the single largest exporter to Canada among Caribcan beneficiaries.

In that year, 98 per cent of TT’s exports – methanol, rum and biscuits – entered Canada duty-free under the Caribcan arrangement, showing its importance in supporting export growth and diversification goals.

Caribcan is a non-reciprocal economic and trade development assistance programme offered to Commonwealth Caribbean countries and territories by the Canadian government since 1986.

The agreement being non-reciprocal means Caribbean countries are not required to provide duty-free access to Canadian products. But it allows for duty-free access into the Canadian market for most commodities from Commonwealth Caribbean countries, including TT.

The objectives are to enhance Commonwealth Caribbean trade and export earnings, improve trade and economic development prospects of the region, promote new investment opportunities and encourage enhanced economic integration and co-operation.

The ministry said it is keen on increasing TT’s utilisation of the arrangement, and exporters are encouraged to employ the benefits of Caribcan to expand exports to the Canadian market.

The release added that to ensure that Caribcan remains available to countries like TT, Canada is required to periodically obtain a waiver from the WTO. In May, the WTO granted the waiver that would allow Canada to continue the Caribcan arrangement until 2033.

The ministry also expressed its appreciation to the government and people of Canada for their continued support to TT and other Caribcan beneficiary countries.