The Organisation of Eastern Caribbean States is exploring ways to lower food prices across the region by expanding imports from the Dominican Republic and suspending tariffs on selected goods, Prime Minister Gaston Browne announced Saturday.
According to Antigua News Room, Browne made the disclosure following the 78th Meeting of the OECS Authority, where reducing the cost of living emerged as one of the bloc's key priorities alongside energy cooperation and regional transportation.
The OECS Commission has been directed to identify products that can be sourced more competitively from the Dominican Republic and assess whether the Common External Tariff can be suspended on those items to bring prices down for consumers.
"The OECS Commission has been asked to do a study to look at a list of goods that are competitive within the Dominican Republic — basic items, food items that we need — and to ask for suspension of the Common External Tariff to make sure those goods can come in even cheaper than CARICOM products," Browne said.
The prime minister said the proposal is designed to ease the financial burden on households as Caribbean governments continue to grapple with inflation driven by global conflicts and supply chain disruptions.
"This is especially important considering the escalation in the cost of living, initially as a result of the war in Ukraine and now as a result of the situation in Iran," Browne said. "We're looking for alternatives because almost invariably, whenever you have these global conflicts, these wars, the small vulnerable countries here in the Caribbean suffer disproportionately."
Browne said diversifying the region's supply chain would make OECS member states more resilient and less dependent on traditional markets. He pointed to the economic fallout from the COVID-19 pandemic and the war in Ukraine as examples of how external events have driven up prices across the Caribbean.
"We have to position ourselves to be a little more resilient so that the impact is not as great as it would have been in the past," he said.
The prime minister described the push to expand trade with the Dominican Republic as part of a broader OECS strategy to strengthen commercial ties beyond the traditional CARICOM market. He noted that leaders also discussed increasing trade with Central and South American nations as part of wider efforts to improve regional food security.
"We recognize the importance of exploring alternative markets, especially in South America, Central America and the Dominican Republic," Browne said.
If approved, the tariff suspensions could allow selected Dominican Republic food products to enter OECS markets at reduced prices, potentially lowering grocery costs for consumers across the sub-region.
