STRATEGIES FOR CARICOM STAKEHOLDERS
January2025
TABLEOFCONTENTS
ExecutiveSummary
The Trump Administration’s renewed focus on bilateral relations and economic growth against the backdrop of countering Chinese dominance in manufacturing and other geopolitical headwinds—presents both challenges and opportunities for CARICOM nations. With shifting trade policies and technological advancements, Caribbean companies, not-for-profits, venture capital firms and governments must use this disruption to reimagine strategies to elevate productivity and competitiveness. This paper outlines actionable strategies to do so, by enhancing trade capacity, leveraging AI, and building strong and secure export networks, all while strengthening partnerships with key stakeholders, such as diasporas, throughouttheUSandCanada.
WhyThisMatters
Though prescriptive for managing a Trump-led United States, these strategies go beyond securing economic growth for the short term; they represent a path toward long-term regional stability and strengthening regional, if not global influence. By adopting innovative technologies like AI, securing trade routes, and empowering SMEs, CARICOM can:
Enhance Competitiveness: By building capacity among regional businesses to engage with a global market; Foster Resilience: Through security frameworks that protect infrastructure and data from evolving threats; Unlock Economic Potential: By maximizing internal and external partnerships, generating jobs, reducing trade deficits, and elevating regional GDP; and Attract Investment: By demonstrating to international investors that CARICOM is a stable, innovative, and forwardlooking market.
Building Trade Capacity through AnchorInstitutionStrategies
Anchor institutions universities, hospitals, and other large entities —can play a pivotal role in fostering local and international trade. Their established networks, research capacities, and access to resources create unique opportunities for CARICOM stakeholders. Successfully implemented anchor strategies, such as the Greater University Circle Initiative (GUCI) in Cleveland, Ohio, demonstrate the potential financial impact: $392.8 million USD in procurement spending, 1,800 new jobs, and $4 billion USD in total new investment to the region over a decade (ending in 2014).
Facilitate University and Corporate Partnerships to drive innovation in agriculture, blue and orange economics, finance, health care, technology (particularly AI), and more.
Develop Regional Hubs for healthcare services and medical tourism.
Support Local Procurement, SME incubators, and workforce development initiatives.
Leveraging Fractal AI to Improve Outcomes
Artificial intelligence, when applied effectively, can revolutionize operations, health care, manufacturing, trade, investment, and public engagement strategies across the board. Using the most innovative, modular platforms available on the market today such as the EHCOnomics platform, stakeholders can unlock AI’s full potential without the traditional challenges of cost, complexity, and unreliable data outputs.
Retail Inventory Management: A retail chain experiencing seasonal demand spikes can automatically adjust its forecasts using live sales data, external factors (e.g., weather, social trends), and fractal insights, improving inventory accuracy by 80%.
Financial Fraud Detection: AI can reduce novel fraud incidents by 70% by automatically detecting anomalies in real time, adapting to new fraud tactics.
Critical Healthcare Diagnostics: A hospital or health network can automatically uncover viral strains 90% faster using real-time patient data analysis and anomaly detection.
Strengthening Regional Trade withinCARICOM
A robust internal trade network buffers CARICOM from volatile U.S. policies. Improved infrastructure, harmonized regulations, and diaspora engagement are critical to fostering economic resilience and competitiveness. CARICOM’s current combined GDP stands at approximately $119.5 billion USD, but research indicates that reducing trade barriers among member states could significantly enhance this figure. Addressing non-tariff measures and streamlining intra-regional trade processes are key to realizing this potential.
EconomicIntegrationWherePossible
Harmonization/Simplify Customs Processes: To facilitate cross-border trade. Reducing non-tariff measures would lead to improved market access and cost savings, unlocking billions in additional trade revenue.
Modernizing Ports and Supply Chain Networks :Would also facilitate further foreign investment.
StrengthenDiasporaTiestoDriveCommerce
Diaspora Bonds: Mobilize capital for investment in infrastructure, renewable energy, technology and other projects in the US and Canada.
Networking Councils: Foster collaboration between US and Canadian diasporas and local SMEs to share resources and market intelligence through diaspora associations and other fit-for-task forums.
Empowering SMEs for Venture FundingandGrowth
Small and medium-sized enterprises (SMEs) are the backbone of CARICOM economies but often face challenges in securing venture funding. Addressing these gaps requires a combination of policy incentives and capacity-building initiatives.
IncentVentureCapital
Using Tax Credits: To incent international investors to fund CARICOM SMEs.
Encouraging Public-Private Partnerships: To de-risk investments in emerging sectors like renewable energy.
BuildSMECapacity
Train SMEs: In business planning, financial literacy, digital marketing and other key capacities.
Credit Scoring Reforms: Incorporate alternative data to streamline financing applications.
Securing Export Trade Routes throughTrustedPartnerships
The unpredictability of U.S. tariffs underscores the importance of diversified export routes and partnerships with reliable distributors. Developing these networks is critical for sustained growth in key sectors.
SecureStrategicPartnerships
Sector-Specific Focus: Partner with distributors in agriculture, finance, health care, technology, etc through a diaspora approach.
Trade Agreements: Leverage existing agreements to minimize barriers and expedite market entry while pushing for new agreements where applicable.
Addressing Security Concerns AcrossCARICOM
Security is a critical enabler of economic growth, especially when expanding trade and adopting new technologies like AI. To strengthen productivity, CARICOM organizations must secure its trading routes, financial sector and other key infrastructure while fostering insights sharing across the region.
SecureTradeRoutes
Port Security Enhancements: Modernize port surveillance and screening technologies. A recent study by the World Bank estimates that improved port security can reduce shipping delays by up to 15%, saving the region an estimated $500 million annually in trade costs.
Anti-Smuggling Measures: Deploy AI within port frameworks to minimize illicit trade and protect legitimate commerce.
ContinueStrengtheningCybersecurity
Data Protection Standards: Implement regionwide cybersecurity protocols to safeguard sensitive trade and financial data.
Incident Response Systems: Establish rapid response frameworks to mitigate cyberattacks, potentially saving $2 billion in losses annually across CARICOM economies
CollaborateforSecurity
Intelligence Sharing: Create an intergovernmental security platform to share intelligence and coordinate responses to emerging threats.
Including Industry: Engage private sector stakeholders to co-develop security solutions, leveraging their expertise and resources
OurExpertise,YourSuccess
Though the short to medium term may seem daunting, Vermont Strategies has the competency, technology, and relationships to guide your organization as it seeks to enhance competitiveness, foster resilience, attract investment and unlock economic potential. Contact us today - let’s develop winning strategies together.
Contactustoday.
AbouttheAuthor
Kurtis Vermont is an entrepreneur and strategist with over 11 years of experience in business development, community development, and government Passionate about enhancing productivity to fuel economic growth, he has driven $7M in SaaS revenue, specializing in sales and marketing, public relations, and strategic communications.
Guided by the importance of service and good policy, he previously worked in federal and municipal politics managing stakeholder relations and policy for a senior MP from the GTA and a senior Toronto City Councillor, and has supported multiple candidates for provincial office. Kurtis excels at creating initiatives that educate, persuade, and inspire action. He can be reached at info@vermontstrategies.com
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