CARICOM and Venezuela: Trade and Investment

Abstract

The main purpose of the study is to investigate the scope and obstacles to increasing trade and investment flows between Venezuela and CARICOM as a result of the steps being taken to liberalize trade and investment and specifically stemming from the CARICOM/Venezuela Trade and Investment Agreement signed October 1992. As a result, basic questions for which answers were attempted are: Did liberalization of trade and investment in Venezuela and CARICOM lead to an increased intra-regional flow of goods and investments? Will the CARICOM/Venezuela Treaty stimulate trade and investment flows? What is the present and evolving structure of trade between CARICOM and Venezuela? What are the areas of potential comparative advantage between CARICOM and Venezuela? What are some of the main remaining obstacles to CARICOM expanding its exports into Venezuela? What policy measures are needed to achieve the objectives of CARlCOM/Venezuela Economic cooperation. In view of the limits of time and resources, not all these questions could have been pursued in the desired depth. The results, however, provide a basis for further enquiry.