An agreement to encourage relationships between companies and private industry groups in the United States and Caricom member states was one of the major trade deals signed during last week's visit to T&T by US Vice President Joseph Biden. The Framework on Trade and Investment (TIFA) will facilitate for trade and investment between the US and the regional trading block.
Biden said he was aware that island nations face unique challenges and added that the US administration's goal is "not simply growth, but it's growth that reaches everybody."The two parties agreed to improve and facilitate an increase in foreign direct investment. The agreement also takes into account the respective levels of development and growth, as well as the geographic dispersion of Caricom member states.This agreement adds to several US-Caricom trade initiatives already in place
Last year, US imports from the region under the Caribbean Basin Initiative totaled more than $11 billion, representing a 178 per cent increase over the past decade. US exports equaled nearly $12 billion, representing a 133 per cent increase over the past decade.The Export-Import Bank of the US (Ex-Im Bank) committed more than $44 million in loans and guarantees that supported an energy project off the coast of T&T and a solar power generation system in Barbados.
The Organisation of American States (OAS) and the University of Texas at San Antonio, with funding from the State Department, are supporting the adaptation of the US Small Business Centre model in five Caribbean countries–Belize, Jamaica, St Lucia, Barbados, and Dominica.Institutions that support small and medium enterprises will be strengthened to provide better services to SMEs with the objective of generating more jobs in the Caribbean and facilitating greater regional trade, including with the US and Latin America.
The US has concluded Open Skies Air Transport Agreements with six Caricom members, greatly increasing options for airlines, passengers, and shippers and helping promote increased travel and trade, enhance productivity, and spur high-quality job opportunities and economic growth.
Under the Energy and Climate Partnership of the Americas (ECPA), the Department of Energy is engaging the Caribbean hotel and hospitality sector to shape a greener energy market by embracing energy efficient and renewable energy technology solutions and supporting government efforts to advance clean energy policies.
Connecting the Americas 2022, an ECPA initiative, has supported Ministerial-level public/private dialogues for reducing Caribbean dependency on imported fossil fuels for power generation, which contributes to the Caribbean paying among the world's highest electricity prices. Donors have funded six analytical and pre-feasibility studies exploring the commercial and technical viability of inter-island interconnections that could facilitate renewable energy development, particularly geothermal in the Eastern Caribbean.
The State's Power Sector Programme will provide technical assistance to advance geothermal and inter-island connections in the region and the US is in discussions with Caribbean officials regarding specific areas of technical cooperation in support of Connect 2022. Leaders will next meet during the Caribbean Renewable Energy Forum in October to discuss potential gas and renewables expansion.
The State Department in partnership with Purdue University, also under ECPA, is collaborating with Partners of the Americas and the University of the West Indies to develop solar energy demonstration projects and a business plan competition to support further development of solar technologies in the Caribbean.
The OAS, with funding from the State Department, has worked in six Caribbean countries to support renewable energy demonstration projects, technical assistance toward energy policy implementation, and a feasibility study on possible electricity interconnection between St Kitts and Nevis and Puerto Rico, a US commonwealth.