WILLEMSTAD – Trade between Curaçao and Trinidad and Tobago remains remarkably limited despite the geographical proximity of the two Caribbean economies. Less than one percent of Curaçao’s total merchandise trade currently involves Trinidad and Tobago, according to a joint study by the Central Bank of Curaçao and Sint Maarten (CBCS) and the Central Bank of Trinidad and Tobago.
The study points to considerable opportunities for expanding economic relations between the two countries, particularly as Curaçao seeks closer integration with the Caribbean region.
Since Curaçao became an associate member of the Caribbean Community (CARICOM) in July 2024, greater attention has been given to strengthening trade ties with countries within the regional bloc. Curaçao and Trinidad and Tobago are now exploring possibilities for a new trade agreement that could remove some of the obstacles currently limiting commerce.
According to the central banks, the two economies have characteristics that could make them complementary trading partners.
Trinidad and Tobago has a well-developed industrial and energy sector and is particularly competitive in chemical products, fuels and financial services. Curaçao, meanwhile, has potential in areas including processed foods, medical instruments and digital services such as information technology and telecommunications.
Despite these opportunities, bilateral trade remains a very small part of Curaçao’s overall international commerce. The findings suggest that geographical proximity alone has not been sufficient to create strong commercial links between the two markets.
The central banks identify several barriers that would need to be addressed if trade is to expand. These include tariffs, administrative procedures at customs and limitations in maritime transportation between the islands.
Reducing tariffs and simplifying customs procedures could make it easier and less expensive for businesses to export products between the two countries. Improved shipping connections would also be important, particularly for merchandise trade where transportation costs can significantly affect competitiveness.
A targeted trade agreement could therefore provide a framework for addressing these obstacles while giving companies in both countries better access to each other’s markets.
For Curaçao, closer economic ties with Trinidad and Tobago could also support efforts to diversify an economy that remains strongly dependent on a limited number of sectors. Greater regional trade could create new opportunities for local producers and service providers while reducing some of the island’s dependence on more distant markets.
The study suggests that stronger bilateral trade could ultimately benefit more than the two countries involved. Expanding commerce between Curaçao and Trinidad and Tobago could also contribute to deeper economic integration between Curaçao and the wider Caribbean following the island’s entry into CARICOM as an associate member.