Notes that Caribbean countries are acutely conscious of their small size, judged by one or all of the criteria of land area, population or GDP, and this impels them to join a larger trading group for fear that they might otherwise be denied a place in the mainstream of international activity. Discusses the lack of preparedness of many small countries for entry into the FTAA, and proposes internal and external policy options which may be chosen for this purpose. Suggests that in order to mitigate the short term transitional costs of entry and enhance their ability to participate in the new grouping, small countries should try in the prior negotiations to secure some transitional arrangements regarding internal policies, measures to increase the production of exportable goods, and joint negotiating strategies.

3/7/00 M2LMGR