The United States in the post-World War II period has been the major economic partner of the Caribbean Community (Caricom), as is evident in the flows of trade, investment, tourism and migration.

Within this economic relationship, US trade policy has an important impact on the economic growth of Caricom countries because it provides preferential access to the US market for exports from eligible Caribbean countries.

We believe strongly that the economic development of Caricom is in the national interest of the United States because it is a foundation for peace, democracy and development in the region and a partial antidote to drug trafficking and transnational crime.

The US is the largest trading partner of Caricom, although its share of the region’s trade has declined due to diversification. US-Caricom trade takes place within the framework of the Caribbean Basin Trade Promotion Act (CBTPA), which is in force until September 2010. The CBTPA allows imports from Caricom to enter the United States free of duty.

We have taken note of the fact that Caricom has written to various members of the US House and Senate indicating its support for a bill — S2978 — sponsored by senators Ron Wyden (Democrat-Oregon) and Bill Nelson (Democrat-Florida) to extend the duration of the CBTPA to September 2013.

The governments of Caricom have argued that the continuation of preferential market access will be beneficial to their economies.

Of course, market access by itself is not a panacea, but is an opportunity and one which Caricom, unfortunately, has not made the best use of. Like the Economic Partnership Agreement (EPA) with the European Union it should be supported by development assistance. Renewal of the CBTPA, we suggest, should be accompanied by US development assistance, in order to ensure maximum benefit to both sides.

It is worthy of note that the US development assistance to Caricom countries, with the exception of Haiti, has declined from the mid-1980s. The United States should significantly increase its development assistance to Caricom countries to support trade. Such assistance would help the countries to bounce back more quickly from the serious adverse impact of the global financial crisis on their small vulnerable economies.

The decline in US aid, it is also important to emphasise, has been accompanied by the rise in importance to the region of economic aid from Venezuela and China. Where there is increased aid, there is increased trade and increased influence.

We believe that US development assistance should also focus on improving the international competitiveness of the private sector. There are private sector synergies between the United States and Caricom which are yet to be brought into existence to the benefit of both their economies.

Linking local firms and US corporations through joint ventures and corporate alliances would increase trade and investment. The United States should, in collaboration with the governments and private sectors of Caricom countries, provide a pool of funds for encouraging corporate collaboration.