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Trade, Economic and Welfare Impacts of the CARICOM–Canada Free Trade Agreement

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This paper estimates the trade, revenue and welfare effects of the proposed Caribbean Community (CARICOM)–Canada free trade agreement (FTA) on CARICOM countries, using a partial equilibrium model. The welfare analysis also takes into account the Economic Partnership Agreement, signed in 2008 by the CARIFORUM countries (CARICOM and the Dominican Republic) and the European Union. The revealed comparative advantage index, trade complementarity index, and transition probability matrices are used to examine the dynamics of comparative advantage for CARICOM country exports to Canada.

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