CARICOM leaders push cost-of-living solutions

July 14 2026

CARICOM Heads of Government have outlined a series of national and regional measures aimed at easing the rising cost of living across the Caribbean, as global prices continue to be driven by geopolitical tensions.

The issue was a major focus of the 51st Regular Meeting of the Conference of Heads of Government, held in Gros Islet, Saint Lucia, from July 5 to 8 under the theme, *”CARICOM: From Resilience to Renewal in a Changing World.”*

Among the measures discussed were reductions in taxes on fuel imports, adjustments to freight costs, lowering the cost of intra-regional cargo trade, expanding renewable energy, and accelerating the introduction of a regional ferry service to improve the movement of goods.

Speaking during a post-summit media conference, CARICOM Chairman and Prime Minister of Saint Lucia, Philip J. Pierre, said the discussions centred on improving the lives of Caribbean citizens.

“Our discussions over the past four days were guided by one central objective – ensuring that CARICOM delivers results that people can see and feel in their everyday lives,” he said. “During our deliberations, Heads of Government focused on the issues that matter most to the people of the Region. We agreed to strengthen regional cooperation to protect consumers, improve affordability, and explore additional measures that can provide relief to vulnerable households. We also agree to strengthen consumer protection and work together to address rising prices across the Community.”

Addressing the impact of inflation across member states, Pierre acknowledged that all CARICOM countries are facing similar challenges.

“Every island is suffering from an increase in the cost of living,” he said. “We decided to share the experience among ourselves. Several islands have taken certain measures to reduce the cost of living in their various islands. But there is one factor we have no control over, which is the price of fuel.”

He noted that Saint Lucia has removed value-added tax (VAT) from selected items to help ease costs for consumers.

Prime Minister of Barbados Mia Amor Mottley highlighted several initiatives implemented by her government, including a cost-of-living allowance for pensioners and a 30 per cent increase in welfare payments. She also said countries are working to provide consumers with real-time price comparison tools through mobile applications.

Mottley identified the proposed inter-island ferry service as a key initiative to lower regional shipping costs.

“We are now about to enter discussions, Prime Minister [Godwin] Friday from Saint Vincent and the Grenadines, Prime Minister [Kamla] Persad-Bissessar, and myself as lead on CSME (CARICOM Single Market and Economy), to see how best we can utilise one of the Trinidad vessels as a proof of concept while the private sector procures,” she said.

She added that CARICOM aims to complete the necessary regulatory work within three months, while private-sector efforts to source vessels could take up to a year.

Mottley further explained that she has undertaken “the responsibility of working with colleagues to be able to get the treaty arrangements for mutual recognition of licences, insurance, so that cargo vehicles can literally go on and come off where possible,” noting that the pilot project will also assess port infrastructure requirements.

Prime Minister of Trinidad and Tobago Kamla Persad-Bissessar said her country’s contribution would focus on reducing healthcare costs by making its national prosthetic centre and specialised children’s hospital accessible to CARICOM nationals at affordable prices, while also providing trained doctors to other member states.

“We’re talking about cost of living. And in this respect, in the medical field, if we partner together, again, we can bring down the cost of living,” she said.

Outgoing CARICOM Chairman and Prime Minister of Saint Kitts and Nevis, Dr. Terrance Drew, emphasised the importance of renewable energy in reducing living costs across the Region.

He said greater investment in wind, solar, geothermal and wave energy would help stabilise energy supplies and strengthen regional economies.

“Can really help, from our perspective, to transform the Caribbean, to transform the Region, and help us to get on a sustainable path of really managing the cost of living of all of our people here in the Region,” Drew said.

(CARICOM)