Caribbean, satellite image. North is at top. The Caribbean comprises over 7000 islands in the Caribbean Sea between the Gulf of Mexico and the USA to the north, Central America to the west and South America to the south. Cuba (upper left) is the largest of the Caribbean islands and lies close to the coast of the USA, with whom the country has a trade embargo. South of Cuba is the island of Jamaica. To the east of Jamaica lies the island of Hispaniola. This island is divided into the nation states of Haiti on the west of the island and the Dominican Republic in the west.