Amid escalating global trade fragmentation and mounting protectionist pressures, Caribbean corporate executives are issuing urgent calls for enhanced regional integration, framing it as an economic imperative rather than merely strategic ambition. This consensus emerged during pivotal addresses at the Jamaica Stock Exchange’s Regional Investments and Capital Markets Conference, where industry leaders outlined the critical need for coordinated action.
Jerome Smalling, Chief Executive of JMMB Bank, highlighted how geopolitical tensions and evolving trade policies threaten to fracture Caribbean cohesion without deliberate coordination efforts. “Our focus must remain on mitigating the detrimental effects of a potentially divided Caribbean,” Smalling asserted. “A unified regional approach, facilitating the seamless movement of capital, talent, and services, proves fundamental to the area’s sustainable growth and development.”
Smalling cautioned that regional fragmentation would undermine the Caribbean’s capacity to attract investment and navigate economic shocks, particularly as global capital adopts increasingly selective allocation strategies. These concerns intensify against a backdrop of rising tariffs, remittance taxes, and policy uncertainties that elevate cross-border transaction costs.
Frank James, Group Chief Executive of GraceKennedy, confirmed that multinational corporations already experience tangible impacts from growing trade friction. “New tariffs and remittance taxes are creating operational challenges, increasing trade expenses, and generating transaction barriers,” James reported.
James explained that these pressures, compounded by climate-related disruptions and geopolitical volatility, compel Caribbean enterprises to reconfigure supply chain architectures and market access strategies. For GraceKennedy, this has translated into aggressive diversification across regional markets and supply networks to avoid over-reliance on individual nations.
“Recent crises demonstrate how disruptions rapidly propagate between markets,” James observed, emphasizing the necessity of building operational flexibility. This strategic shift has motivated GraceKennedy to invest in robust regional supply chains and accelerated market pathways throughout the Caribbean.
Smalling advocated for expanding integration beyond merchandise trade to encompass capital markets, financial services, and export-focused small and medium enterprises. He positioned financial institutions as crucial enablers of cross-border investment and regional operational support.
“A robust, inclusive, and efficient capital market remains indispensable for development,” Smalling stated, noting rising demand for cross-border financial solutions as businesses and households seek risk management and regional opportunity access.
Both executives concurred that the Caribbean’s response to global uncertainty will define its economic resilience through the next decade. James urged businesses and policymakers to distinguish between uncontrollable global forces and strengthenable regional systems.
“We derive optimism from comprehending immutable factors while concentrating on alterable elements,” James remarked.
Smalling framed the situation as ultimately concerning coordination: “Economies thrive when businesses and households prosper,” he concluded, maintaining that cross-border cooperation proves essential for sustaining growth.
As global trade turns inward, Caribbean leadership concludes that the region’s optimal defense resides not in fragmented national reactions but in deepened integration across capital, services, and markets.
