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Mr. Philippe Egoume Bossogo and Mr. Chandima Mendis
This paper analyzes trade in the Caribbean community (CARICOM) using a gravity model framework. The paper seeks to shed light on the dynamics of trade among CARICOM member countries, as well with the rest of world over 1980–99. Overall, the results show that intra-CARICOM trade has increased, suggesting that further regional integration is desirable. At the same time, CARICOM’s trade with the rest of the world has risen as well, fueled notably by the reduction of the arrangement’s common external tariff and despite the negative impact of the declining preferential access to EU markets for banana. In contrast, WTO membership does not appear to have had a positive impact on trade. Overall, it appears that trade liberalization is consistent with greater CARICOM trade integration.
Mr. Philippe Egoume Bossogo and Mr. Chandima Mendis

constrained trade among the larger CARICOM. Controlling for the latter, the ECCU is not trade creating among its members. Various changes in the EU banana regime, which have allowed greater access to the EU banana market for non-ACP producers, have negatively affected CARICOM trade. The region should thus diversify its export base. Cultural proximity as captured by the use of a common language is a strong trade-creating feature. Presumably, common language reduces transaction costs, thereby fostering trade. Economic and trading arrangements are trade