Trade Preferences for Developing Countries: An Analysis of Canada's Trade with the Caribbean Basin

Abstract

SUMMARY This paper analyzes the potential impact of Canada's newest trade preference agreement with the Caribbean Basin. The analysis shows that overall static trade expansion gains are limited to £536,000 per year and are confined to a narrow range of commodities. Greatest potential is found to exist in fresh vegetables, cocoa and chocolate products and sauces. The analysis also shows that more than 87% of the gains from trade expansion will redound to the benefit of Jamaican entrepreneurs.