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National Export Strategy

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National Export Strategy Government of Saint Lucia SAINT LUCIA NATIONAL TRADE STRATEGY 2020-2024 SAINT LUCIA NATIONAL TRADE STRATEGY: 2020–2024 This National Export Strategy was developed following the process, methodology and technical assistance of the International Trade Centre (ITC) within the framework of its Trade Development Strategy programme. ITC is the joint agency of the World Trade Organization and the United Nations. As part of the ITC mandate of fostering sustainable development through increased trade opportunities, the Export Strategy section offers a suite of trade-related strategy solutions to maximize the development payoffs from trade. ITC-facilitated trade development strategies and roadmaps are oriented to the trade objectives of a country or region and can be tailored to high-level economic goals, specific development targets or particular sectors, allowing policymakers to choose their preferred level of engagement. The views expressed herein do not reflect the official opinion of ITC. Mention of enterprises, products and product brands does not imply the endorsement of ITC. This document has not been formally edited by ITC. The International Trade Centre (ITC) Street address: ITC, 54-56, rue de Montbrillant, 1202 Geneva, Switzerland Postal address: ITC Palais des Nations 1211 Geneva, Switzerland Telephone: + 41- 22 730 0111 Email: [email protected]: http://www.intracen.org ACKNOWLEDGMENTS AND DISCLAIMER The National Export Strategy (NES) of Saint Lucia was developed under the aegis of the Government of Saint Lucia and in particular under the leadership, financial support and technical assistance of International Trade Centre (ITC), CARICOM Development Fund (CDF) and Export Saint Lucia. The document benefited particularly from the inputs and guidance provided by the members of the ITC team and Saint Lucia’s core committee that steered the formulation of the NES. Technical support and guidance from the International Trade Centre was provided by Marion Jansen, Alberto Amurgo Pacheco, Olga Khomula, Quan Zhao, Subhrendu Chatterji, Pablo Lo Moro, Lyndell P St. Ville, Olivier Van Lieshout, and Anton Said. The International Trade Centre wishes to acknowledge with deep gratitude the dedication of Export Saint Lucia and the Ministry of Commerce, International Trade, Investment, Enterprise Development and Consumer Affairs, the Navigator, National Consultant, other Government Ministries, Stakeholder and affiliate agencies, and the Saint Lucian general public for assistance and inputs for this document. FOREWARD The Government of Saint Lucia is proud and elated to present Saint Lucia’s National Export Strategy (NES). This strategy is a marriage of the policy of our Government, the wishes of the people (as expressed through numer- ous consultations) and the goals and ambitions of diverse and very active manufacturing and service sectors. The Development of the NES was charged to the Trade Export Promotion Agency, now Export Saint Lucia, a unit that “punches well above its weight” as lauded by Arancha González, former Executive Director of International Trade Centre (ITC). The ITC was instrumental in the development of the NES and has been a loyal partner and friend to Export Saint Lucia and the Government and people of Saint Lucia for many years. The predecessor of this NES was established in 2004 and focused on the capacity of the country to produce and offer to its many export partners, the commodities and services that were in demand at that time. Fast forward to 2020, with global preferences changing, demand versus supply and the need to keep our customers happy, we were forced to reassess and redesign the process, leading to the development of Saint Lucia’s National Export Strategy 2020. The NES development process called for a meeting of heads, a meshing of thoughts and ideas, many tedious hours of work and iterations of the final product. We would not stop consultations until we were sure that every voice was heard and every opinion considered. This strategy had to be inclusive, after all, it was not Export Saint Lucia’s strategy, nor was it that of ITC or the Government, it was that of the Nation. Out of the various consultations came a list of sectors that we all agreed should be the focal point of Saint Lu- cia’s export aspirations for both goods and services. I am very proud that one of these sectors is the craft sector. We are a Nation with a rich cultural heritage which is enthused in our craft, our art, our music and our fashion, all of which we are eager to share with the world. Our manufacturing sector is growing and was deemed vital to the survival of our export sector and hence included in this strategy. The NES lays out a detailed roadmap for faster export growth and acknowledges that things need to be done differently to ensure a higher contribution from export and trade to our Gross Domestic Product. It will continue to champion the traditional sectors while incorporating innovation to ensure export sectors are less vulnerable to market variations. The NES focuses on the short and medium term approaches aimed at growing the export sector of Saint Lucia through a well-coordinated process and the optimal use of the country’s resources and capabilities. The NES also provides a unique window of opportunity for Saint Lucia to modernize and start a new cycle of economic prosperity. I would like to thank all those directly involved in the process including the Government of Saint Lucia, The Ex- ecutive Director of ITC and all other ITC personnel, Export Saint Lucia all other affiliate agencies of Saint Lucia’s Ministry of Commerce. I would like to offer special thanks to the CARICOM Development Fund (CDF) for their support and applaud them for the invaluable work that they continue to do in our Region. We look forward with great alacrity and expectation to the implementation of the NES, the expected and much desired growth of Saint Lucia’s Export portfolio and ultimately its positive impact on our Country’s economy. Hon. Bradley Felix - Minister of Commerce, Industry, Investment, Enterprise Development and Consumer Affairs. CONTENTS Acknowledgments and disclaimer Acronyms EXECUTIVE SUMMARY 1 PRIORITY SECTORS 2 PRIORITY CROss-CUTTING FUNCTIONS 10 TRADE AND INVESTMENT 20 TRADE IN GOODS AND SERVICES 21 INVESTMENT 29 ECONOMIC ENVIRONMENT 34 MACRO-ECONOMIC ENVIRONMENT 34 LABOUR FORCE AND SKILLS 36 NATIONAL STRATEGIES, POLICIES, AND DONOR ACTIVITY 40 NATIONAL STRATEGIES AND DEVELOPMENT PLANS 40 TRADE POLICY FRAMEWORK 43 NATIONAL TRADE SUPPORT NETWORK 48 KEY COMPETITIVENESS CONSTRAINTS 54 THE WAY FORWARD 62 VISION AND STRATEGIC OBJECTIVES 62 PRIORITY SECTORS AND CROSS-SECTOR FUNCTIONS 66 SELECTION CRITERIA 66 LIST OF PRIORITY SECTORS 67 DEVELOPMENT TRAJECTORY 68 NATIONAL LEVEL PLAN OF ACTION 70 SECTOR STRATEGIES 79 INFORMATION AND COMMUNICATION TECHNOLOGY 79 CREATIVE INDUSTRIES 86 TOURISM 94 FOOD AND BEVERAGES 104 RENEWABLE ENERGY 115 TRADE SUPPORT FUNCTIONAL STRATEGIES 122 TRADE FACILITATION AND LOGISTICS 122 INNOVATION 134 SKILLS DEVELOPMENT AND EDUCATIONAL SERVICES 147 ACCEss TO FINANCE 157 IMPLEMENTATION MANAGEMENT FRAMEWORK 167 REFERENCES 171 Appendix 1. Countries with export potential 173 LIST OF FIGURES Figure 1 : Logical framework of the roadmap 2 Figure 2 : Logical framework of the renewable energy strategy 3 Figure 3 : Logical framework of the ICT strategy 5 Figure 4 : Logical framework of the creative industries strategy 7 Figure 5 : Logical framework of the tourism strategy 8 Figure 6 : Logical framework of the Food and Beverage strategy 9 Figure 7 : Logical framework of the educational services and skills development strategy 11 Figure 8: Strategic and operational objectives of the NTS trade facilitation strategy 13 Figure 9 : Logical framework of the innovation strategy 15 Figure 10 : Logical framework of the Access to Finance strategy 17 Figure 2 : Overall level of statistical capacity ( scale 0 – 100 ) 20 Figure 3 : Openness to trade, 2000-2015 21 Figure 4 : Trade in goods ( left ) and trade in goods and services ( right ) 22 Figure 5 : Revealed Comparative advantage ( left ) and Trade Performance Index, 2015 ITC ( right ) 22 Figure 6 : Exports of manufactured goods, Saint Lucia ( US $ million ) 23 Figure 7 : Imported goods, 2008-2014 23 Figure 8 : Exported goods, 2008-2014 25 Figure 9 : Actual and predicted exports, gravity estimation 25 Figure 10 : Decomposition of export growth in Saint Lucia, 2005-2015 26 Figure 11 : Market reach of Saint Lucian exports 26 Figure 12 : Share of parts and components in exports and imports, Saint Lucia, 2002-2015 27 Figure 13 : Technological classification of exports, Saint Lucia, 2005-2015 28 Figure 14 : Saint Lucia’s exported services, 2008-2015 28 Figure 15 : Foreign Direct Investment to Saint Lucia, 2004-2015 29 Figure 16 : Capital inflows to Saint Lucia, 1989-2015 29 Figure 17 : Ease of doing business ranking, Eastern Caribbean countries 30 Figure 18 : Rankings on Doing Business topics - Saint Lucia ( Scale : Rank 190 centre, Rank 1 outer edge ) 31 Figure 19 : GDP and GDP growth, Saint Lucia, 1989-2015 34 Figure 20 : Current account balance, 2000-2013 35 Figure 21 : Labour force participation rate ( % ) by age and gender 36 Figure 22 : Composition of employment in Saint Lucia by type of economic activity, 2015 36 Figure 23 : Output per worker, Caribbean countries, 2015 ( GDP constant 2011 International $ in PPP ) 37 Figure 24 : Job Gap by Major Commercial Area Sept - Nov 2012 37 Figure 25 : Qualification requirements of job vacancies ( left ) and qualifications
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