Enhancing India CARIFORUM Economic Relations and Prospects for Cooperation

more reliant on trade. The importance of trade for the region is reflected by the fact that economies have formed multiple trading blocs aimed at removing trade barriers, such as tariffs and quotas, among the member-states. The Caribbean Community and Common Market (CARICOM) and the Organization of Eastern Caribbean States (OECS) are the two most popular trade alliances in the region. Additionally, many islands have established preferential trade agreements with UK, Canada and members of the European Union. These trade agreements help in exposing economies in the CARIFORUM to wider markets. The total trade of CARIFORUM countries has grown by more than three-fold since the turn of century. Total trade in merchandise goods peaked at US$ 94.7 billion in 2019, before the COVID-19 pandemic shook the world and international trade collapsed as countries locked down borders to contain the spread of the coronavirus (Figure A) . Even then, exports have shown greater resilience compared to imports, which has meant that trade deficit has declined.

Figure A: CARIFORUM Countries’ Trade Over the Years (US$ billion)

Source: ITC Trademap; India Exim Bank Analysis

India’s Trade with CARIFORUM Countries India and the Caribbean countries have maintained historic and warm ties. India’s relations to the Caribbean can be traced back to at least the 19 th century, when Indian indentured labor arrived at the shores of the Caribbean countries to work on the sugar plantations. Presently, the Indo-Caribbeans comprise one of the largest ethnic group in many countries in the CARIFORUM. 3

3 Guyana, Trinidad and Tobago, Suriname

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Enhancing India-CARIFORUM Economic Relations and Prospects for Cooperation