ST JOHN’S, Antigua (AP) – Caribbean countries should seek trade opportunities in tourism and information technology to counter the blow from cuts in European subsidies on agriculture, an International Monetary Fund official said yesterday.

Agustin Carstens, the IMF deputy managing director, said the region must look for new sources of economic growth following the EU’s recent decision to sharply reduce trade protection for Caribbean bananas and sugar.

“There might be some transitional impact (from subsidy cuts) and that’s why it is important to look into different sources of growth in the region,” Carstens said during a visit to Antigua.

Carstens said countries could do more to boost gains from tourism, already a main source of foreign income in the region.

He also suggested taking advantage of the region’s good telecommunications services to move into high-tech fields like information management.

The EU said last month it would introduce a euro176 (US$206) per ton tariff for bananas imported from Latin America starting next year in an effort to end a global trade dispute. Caribbean countries, which had wanted a higher tariff, said the measure would flood Europe with cheap Latin American bananas, driving smaller regional producers out of the market.

Caribbean countries also are upset about an EU plan to slash subsidies for Caribbean sugar growers, a move prompted by a ruling by the World Trade Organisation.