BRIDGETOWN, Barbados — The CARICOM Private Sector Organization (CPSO) welcomes and strongly supports the decision taken at the sixtieth regular meeting of the Council for Trade and Economic Development (COTED) for the alteration of the Common External Tariff (CET) on paints and varnishes to 35 percent, effective July 1, 2026.
This decisive policy move follows comprehensive industry research which confirmed that persistently underpriced imports from extra-regional countries have placed severe and sustained pressure on the Region’s paint manufacturing sector. These extra-regional imports have distorted the market, undermined domestic production and threatened employment and investment, jeopardizing the long-term viability of one of CARICOM’s key manufacturing value chains.
Dr Patrick Antoine, CEO and technical director of the CPSO, speaking on the COTED Decision, said:
“The alteration in the CET to 35 percent represents a necessary and timely intervention for the paint and varnishes industry. This decision will set us on a pathway to level the playing field for CARICOM manufacturers, safeguard regional jobs, and ensure that investment in quality production is not undermined by unfair trade practices.”
The CPSO commends Kerrie Symmonds, minister of foreign affairs and foreign trade of Barbados, and chair of COTED for his visionary leadership and steadfast commitment to ensuring a rules-based, equitable trade environment that supports regional production and enables CARICOM’s industrial development.
The decision by COTED minsters, is expected to catalyze approximately USD 200 million in investments in the CSME paints and coatings sector over the next three years. Already, investments in plant expansions have been undertaken by paint manufacturers in Saint Lucia, Grenada, Suriname, and Jamaica, where a new innovative facility was commissioned in March of this year.
The CET adjustment highlights a broader regional need. Dr Antoine noted:
“The requirement for CARICOM to operationalize a Community-wide regime of trade defense measures to safeguard regional producers from unfair trade practices, which will emerge in the routine context of international trade.” He also indicated that while three CARICOM member states maintain competent authorities capable of addressing unfair trade practices at the national level, an effective coordinated mechanism to respond in instances where the CSME market was impacted, remained lacking.
The CPSO stands ready to support member states with implementation of the COTED Decision by July 1, 2026. The CET adjustment is consistent with the objectives of the CARICOM trade regime to strengthen production and trade in the CSME, providing regional manufacturers with the scale required to achieve efficiency gains, thereby strengthening their ability to compete in extra-regional markets.
The decision was the result of region-wide collaboration. The CPSO was tasked with coordinating the technical work underpinning the request for the CET alteration for paints and coatings by paint manufacturing companies in the Organization of Eastern Caribbean States (OECS), with strong support from manufacturers in all the More Developed Countries (MDCs). The CPSO CEO, remarked that this action, which commenced with the smallest of manufacturers, and secured the support of the COTED ministers, after thorough analysis, was an effective demonstration of the benefits of CARICOM.
The CET alteration comes as CARICOM advances its Industrial Policy framework, amidst a resurgence of regionalism, rising global tensions and the imposition of the US reciprocal tariff of 10 percent on CARICOM exports. In this context, the move to strengthen tariff protection for key industries such as the paints and coatings sector, represents both a necessary defense and proactive step toward deeper regional integration.
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