2014-2015

GUYANA THE NEXT ECONOMIC TIGER?

Trade finance Essential Fuel for Caribbean Butch Trade Growth Stewart The Story of Sandals: Life’s A Beach Tessanne Chin and Ready for Business The Voice of a Region

contents

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6 Message from the Chairman of the Board 7 Message from the Executive Director 8 Message from the Head of the European Union Delegation to Barbados and the Eastern Caribbean pulse of the caribbean

12 Understanding the State of Play: The region’s economic performance and the role of Caribbean Export 14 Enhancing Regional Growth Through Trade 16 Guyana: The Next Economic Tiger? 18 Trinidad and Tobago: Moving Beyond the Petro-Economy 20 Jamaica: From Debt to Development? 22 OECS: The Quest for Economic Resilience trade & export hot spots

26 The Unexploited Gateway to Brazil 30 Expanding Caribbean Exports to Fast Growing African Economies 34 Satisfying the German Demand for Caribbean Specialty Foods 40 Company to Look Out for: 10 Saints Brewery Company Limited our competitive advantage

44 Agro-processing: What’s Our Unique Selling Point? 48 Company to Look Out for: Marie Sharp’s Fine Foods Limited 50 The Caribbean Services Sector and the Opportunities Under the CARIFORUM-EU EPA 54 On the Right Track: MVP Boosting the Business of Sport 58 One-on-One with Two-Time Olympic Champion Shelly-Ann Fraser-Pryce 62 The Caribbean: Sun, Sea, Sand and Sport 66 The Creative Industries: Exploring Opportunites 70 The Voice of a Region: Tessanne Chin’s Rise to Prominence 74 Designing Haiti 76 Company to Look Out for: MAG’ ART 78 Creole Music Reaps Benefits for the Dominican Tourism Industry

2 www.carib-export.com clearing the hurdles

82 Evaluating the Main Challenges to Caribbean Private Sector Development 84 Dilemma of Difference 86 Trade Finance: Essential Fuel for Caribbean Trade Growth 90 Regional Food Safety in Focus: Insights with Technological Solutions Limited 94 Company to Look Out for: Baron Foods Limited 96 Building the Bridge to Mutual Recognition of Caribbean Professionals 100 Attracting Investment to Enhance Trade exporters’ insights

106 The Story of Sandals: Life’s A Beach and Ready for Business 110 Driving Success: The Automotive Art Strategy for Growth and Sustainability 114 Recipe for Success: Rainforest Seafoods on Serving the Region 118 Company to Look Out for: SMAKS Luxury Group Limited exporters’ tool box

122 Caribbean Export’s Suite of Services 124 Directory of Key Contacts for CARIFORUM Exporters appendix

129 Tabular Country Profile of each CARIFORUM State

credits

Produced by Publisher Sales and Advertising The Caribbean Export Development Agency Neysha Soodeen 1st Floor Baobab Tower [email protected] Warrens, St. Michael, Barbados BB22026 Toute Bagai Publishing Murl Walcott Tel. +1(246) 436-0578 MACO Magazines [email protected] Fax. +1(246) 436-9999 26 Kelly Kenny Street, Woodbrook www.carib-export.com Port of Spain, Trinidad Design and Layout Tel. +1(868) 622-0519 Jason Waithe www.macomag.com [email protected] www.macocaribbean.com

www.carib-export.com 3 CARICOM DEVELOPMENT FUND (CDF) The Barbados-based CDF was launched in 2008 as a development gone to the Public Sector while 45 percent have been applied to fund with a mandate to support “disadvantaged countries, regions enhancing competiveness in the Private Sector. The CDF works in and sectors” within the Caribbean Community (CARICOM) by close partnership with the public, private, non-Government and other providing grants and loans to Member States to ameliorate disparities development agencies to optimize the use of the Fund’s resources and dislocations resulting from the implementation of the CSME. for the benefit of the Member States.

The core activity of the CDF is its Country Assistance Programmes At the end of August 2014, the CDF had approved US $46.05 (CAPs), aimed at mitigating temporary economic constraints facing million for all eight eligible countries and disbursed a total of US these Member States. Fifty-Five percent of all approved CAPs have $19.8 million to these Member States.

HIGHLIGHTS OF THE CDF’S APPROVED COUNTRY ASSISTANCE PROGRAMMES (CAPs)

BELIZE: US $6.25 million - loan and grants to support MSME SAINT LUCIA: US $6.10 million for private sector financing, development in the Private Sector agricultural development and export promotion

DOMINICA: US $7.14 million for agricultural export development ST. KITTS AND NEVIS: US $3.99 million for financing SME’s, agricultural and financing to private sector entities development and energy efficiency in the manufacturing sector

GRENADA: US $ 3.76 million for energy efficiency in the tourism ST. VINCENT AND THE GRENADINES: US $7.47 million towards sector and financing private sector enterprises airport construction works at the Argyle International Airport

GUYANA: US $7.32 million towards upgrading farm access roads ANTIGUA AND BARBUDA: US $4.02 million for the redevelopment for agricultural development of the Lower St John’s Cruise Terminal and completion of the Learning Resource Centre

First Floor East SKYMall, Haggatt Hall, St. Michael Phone: 246-436-1849 Fax: 246-435-4037 Web: www.caricomdevelopmentfund.org

message from The Chairman of the Board

As members of CARIFORUM, we welcome providing potential investors with an insight the launch of the region’s first trade and export into the Caribbean business landscape. publication: Caribbean Export OUTLOOK by the Caribbean Export Development Our common quest for regional export Agency (Caribbean Export). This is a timely growth remains a powerful yet exciting publication, which is intended to help fill the challenge. Lessons learnt must be shared information gap experienced by our region’s and the innovativeness which resides in all exporters as they venture beyond their borders of us must be harnessed. We need to take a in search of new trade opportunities. close look at the things we do well, recognize where best we can add value, and determine The world of international trade is ever the goods and services that can be packaged changing and increasingly competitive. and branded with our “Caribbeaness.” Companies continually offer new products and services through innovation, countries This publication is a valuable step in the increase market access via trade negotiations, right direction, providing an effective and the establishment of new technical platform for the dissemination of useful barriers to trade cause manufacturing to trade information, and updates on regional become a truly international process with trade issues. We hope that it will stimulate a global value chain here to stay. Faced with awareness and help generate the necessary a myriad of challenges and trade dynamics, discussions on the way forward for the region, CARIFORUM exporters, who are sufficiently as an important member of the international informed with up-to-date pertinent trade data, trading system. are naturally best positioned to secure long term trading success. They are able to harness It is my hope that the regional private sector information to enhance their international will make full use of this publication, which competitiveness, seek niche opportunities, and represents the compilation of some of the gain inspiration from regional success stories. best trade research efforts of relevance to CARIFORUM. Congratulations are Caribbean Export OUTLOOK is intended extended to the staff of Caribbean Export to provide this necessary level of information who conceptualized this publication and have to facilitate the navigation of international made it possible. We all cheer the start of what trade by our regional exporters, whilst is set to be a longstanding tradition.

Christopher Lewis The Chairman of the Board The Caribbean Export Development Agency

6 www.carib-export.com message from The Executive Director

The Caribbean Export Development Agency that the region can capitalize on, while (Caribbean Export) is pleased to publish this readers can learn more about sectors such as inaugural edition of the Caribbean Export the creative industries and agro-processing OUTLOOK. Throughout its existence, under the section covering Our Competitive Caribbean Export has endeavoured to serve Advantage. Caribbean Export further the CARIFORUM private sector through a identifies a number of cross-cutting issues number of initiatives designed to increase and challenges facing exporters in Clearing competitiveness to enable businesses to enter the Hurdles, which is followed by Exporters’ new markets and take their brands to the world. Insights, where we take you on a journey with some of the region’s most successful exporters In order for Caribbean countries to take full to highlight some of the strategies they have advantage of the opportunities available under used in moving their businesses beyond their the CARIFORUM-EU Economic Partnership local markets. We conclude the publication Agreement (EPA) and other trade agreements, with an Exporters’ Toolbox, which contains we must increase the availability and use of valuable business contacts for exporters. high-quality information on markets of interest and ensure that it forms the basis of all trade- We hope that this publication will raise related decision making. There are currently awareness of key issues affecting the private no other regional publications dedicated to sector; provide information for planning providing trade-related information written firm-level and national-level export strategies; specifically for the private sector. The purpose engage stakeholders, whether policy makers or of producing this annual publication is to give trade promotion organisations, to improve the exporters timely and relevant information export environment for firms; and contribute that will ultimately enhance their export to the discussion on the way forward for competitiveness. regional export development and promotion.

The first section in the publication, Pulse of This publication will also highlight to the the Caribbean, provides an understanding world that we in the Caribbean produce of the current economic situation facing quality goods and services that epitomize the CARIFORUM States and a vision for essence of who we are as a people—passionate, regional growth through increasing trade and diverse and exquisite. The Caribbean is ready exports. The Trade and Export Hotspots for trade and I invite you to read and share our section highlights select country markets OUTLOOK as we continue to champion and opportunities within those markets and support the region’s private sector.

Pamela Coke-Hamilton Executive Director The Caribbean Export Development Agency

www.carib-export.com 7 message from The Head of the European Union Delegation to Barbados and the Eastern Caribbean

It is a pleasure for the European Union (EU) Since 2011 under the 10th European to say a few words in this inaugural issue of Development Fund (EDF), the EU’s support the Caribbean Export OUTLOOK and to Caribbean Export has been focused on we take this opportunity to congratulate assisting the region in the implementation of the Board members, Executive Director and the Economic Partnership Agreement (EPA) staff of the Caribbean Export Development signed in 2008. It goes without saying that EPA Agency (Caribbean Export) for the initiative implementation remains a priority for the EU. to put this well-needed information into the The CARIFORUM-EU EPA is the only one of public domain. its kind and we truly believe that it will make a difference—not only in EU-Caribbean trade Caribbean Export continues to make an relations but also the region’s success on the invaluable contribution to the growth and international trade stage. development of the private sector in the Caribbean. The EU has had a longstanding, There can also be no doubt that the EU successful partnership in private sector remains committed to the continued thrust development with Caribbean Export in making the Caribbean a viable and spanning over 18 years. vibrant region for international trade and investment. We have invested a considerable The involvement of the EU in advancing the amount of financial and human resources growth and competitiveness of the regional in this regard, and look forward to further private sector over the past 18 years is successful collaboration with our partners indicative of the recognition that a dynamic in CARICOM, CARIFORUM, Caribbean private sector is the basic prerequisite for Export, as well as other regional and national economic growth, job creation and poverty organizations and other international donors. reduction. Regional and global economic integration through trade liberalization and I would therefore like to end by congratulating the proliferation of bilateral and multilateral Caribbean Export once again for this milestone. trade are central pillars of EU development I would also encourage the private sector to take policy in the context of EU-Caribbean advantage of this unique opportunity which partnership. is unprecedented in its scope and provisions.

Thank you.

His Excellency Ambassador Mikael Barfod Head of the European Union Delegation to Barbados and the Eastern Caribbean

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pulse of the caribbean Pulse OF THE CARIBBEAN understanding the state of play: the region’s economic performance and the role of Caribbean

Export BY PAMELA COKE-HAMILTON

Despite overall global economic recovery exchange earnings, employment and overall in 2013, the Caribbean region remains socio-economic development. Today, while mired in the struggle to emerge from the agriculture still contributes significantly to worldwide recession that started six years the GDP of some member states (Guyana ago. A quick scan of regional economic data 21%, Belize 12% and Suriname 10.9%) the reveals the unhealthy figures that continue majority of countries in the region have to plague country reports and do little to diversified away from agriculture and are now Caribbean finds itself with the challenge increase investor confidence in the region. heavily dependent on the services industry of not only fighting for the survival of With unemployment as high as 20% in some (Source World Bank). In 2010, services such a vital sector, but also charged with Eastern Caribbean countries and high debt contributed an average of 77% towards GDP the responsibility to further develop niche to Gross Domestic Product (GDP) ratios in for 13 CARIFORUM States (Source UN sectors and explore new export market Jamaica (146.2%) and Barbados (109.7%), Main National Accounts aggregates). At the opportunities for its goods and services. the region is at a pivotal point in its historical individual country level, the importance of and economic development (Source RBC services is even more apparent. A snapshot Since the 2008 signing of the Economic Caribbean Economic Report June 2014). of statistics showing the contribution of Partnership Agreement (EPA) between the While regional governments are battling the finance and business services sector in Caribbean Forum of African, Caribbean and credit rating downgrades and implementing Barbados, for example, shows how integral Pacific States (CARIFORUM) and the European International Monetary Fund (IMF) it is to the country’s national development. Union (EU), regional exports to the EU have programmes, the private sector is caught in The sector employed 17, 800 persons and increased and mainly included primary products the middle as the business environment has accounted for BDS $921.4 million worth of such as oil, mineral fuels and distillation drastically changed, resulting in the closure exports in 2013 (Source UNCTAD). products. By 2013, total CARIFORUM exports of some companies and the retrenchment of to the EU were valued at US $ 5 billion (Source workers. There is therefore an urgent need However, despite the importance of services ITC). However, non-traditional exports to the to support the private sector in mitigating to regional economies, governments are EU in 2013 grew by 15% between 2009 and the negative effects of the crisis while also again faced with global threats to one of its 2013 and totalled US $3.2 billion. There is still strengthening its internal capacity to export. niche services—the financial services sector. much work to be done in increasing exports This sector, which is the second largest from the Caribbean to the European market. The Caribbean has historically been contributor to GDP in the Caribbean region, Through its work programme, Caribbean dependent on export earnings to contribute has come under increased scrutiny through a Export has been working assiduously to ensure to economic and social development. number of developed country led initiatives, that this happens. Under the Lomé Convention, the region’s including harmful tax competition, anti- agricultural products enjoyed preferential money laundering standards, tax base Currently implementing the 10th European treatment in its trade with the European erosion and profit shifting and exchange of Development Fund (EDF) Regional Private Union (EU), which augured well for foreign information standards. In light of this, the Sector Development Programme (RPSDP),

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Caribbean Export has worked on a number carry innovative products. Bearing in mind there are still a number of areas that have to of initiatives that are designed to enhance the that nearly 7,000 companies exhibit at be addressed if we are to continue on the competitiveness and export capacity of regional ANUGA, that is an amazing feat. trajectory of attaining increased exports from small and medium-sized enterprises (SMEs) our countries. Some of these (addressed under and to increase trade and exports. The range of As a result of our participation at ANUGA, Clearing the Hurdles) include high energy services offered by the Agency can be viewed SMAKS Luxury Group Ltd. from Trinidad and costs, limited access to capital, non-compliance under the section, Caribbean Export’s Suite Tobago was able to secure a major distributor with international standards, and limited market of Services. Our work has spanned a number of for the Nordic countries (Norway, Sweden, and contacts in export markets of interest. Addressing priority sectors from agro-processing, to fashion, Denmark) for their teas and Chai Rum. Orders these issues requires the collaborative efforts of music, and renewable energy and throughout we from the prestigious InterContinental Carlton policy makers, financial institutions and donor have been privileged to work with companies that Hotel in Cannes, France have been delivered agencies to ensure that we can create solutions demonstrate high levels of quality, innovation and teas are already being served. Orders have to the challenges facing the private sector. In this and workmanship. Their stories are highlighted been received from Italy, France, Switzerland, regard, public-private dialogue will be critical in at various points in the publication under and the UK. Another company, 10 Saints achieving this objective. Companies to Look Out For. Brewery from Barbados, received orders from buyers in Italy, Germany and France and is Overall, the region must continue to explore Caribbean Export is particularly proud still engaged in discussions with prospects in the sectors which offer us a competitive to highlight the facilitation of Caribbean Poland, Russia and Spain. It is our firm belief advantage in trade. We must strengthen firms to participate in the largest food and that in our region, there are products that are firms in these sectors while ensuring that beverage trade show in the world—ANUGA, ready for international markets. It is our role the enabling environment under which they which took place in Cologne, Germany as an export promotion agency to offer them operate is “business friendly’’ and conducive in October 2013. Of the 11 Caribbean the right type of support and guidance that to business start-up and expansion. firms that attended, three of them (Banks will advance the region’s overall economic Holdings Ltd. from Barbados, Marie Sharp’s development. The current state of play economically Fine Foods Limited from Belize, and Baron demands that we up our game in the area of Foods Limited from Saint Lucia) received While we acknowledge that the RPSDP has trade if we want to emerge a stronger region, the coveted Taste13 Award, which was already made a contribution to increasing one that can earn its living capitalizing on bestowed upon 54 companies deemed to exports and enhancing firm competitiveness, the creativity of its people. www.carib-export.com 13 Pulse OF THE CARIBBEAN enhancing regional growth through trade BY SIR RONALD SANDERS

Much doubt currently exists over whether, in the present circumstances, trade can be expanded both within the Caribbean region and globally to enhance regional growth.

A quick snapshot of the balance of trade deficit of 13 Caribbean Community (CARICOM) countries with the rest of the world makes depressing reading. The Bahamas and Haiti are excluded since they have not committed to the Caribbean Single Market and, therefore, the CARICOM Secretariat (which is the source of these figures) does not compile records of the trade of these two countries. In 2010, CARICOM’s balance of trade deficit with the world was US $2,600,326,524. By 2011, the deficit had increased to US $3,136,289,308. Only two CARICOM countries enjoyed a trade surplus– Trinidad and Tobago US $4,475,070,938 (2010) and US $5,321,850,194 (2011) and Suriname US $686,278,857 (2010) and US $878,276.061 (2011). Were it not for the performance of the latter two countries, CARICOM’s balance of trade deficit with the rest of the world would have been larger.

Within CARICOM, Trinidad and Tobago is the only country that enjoys a balance of trade surplus. In 2010 the surplus was US $1,934,847,203 and in 2011 US $1,884,684,217. In terms of all exports between CARICOM countries, Trinidad and Tobago consistently averages 68 %. The pre- eminent position of Trinidad and Tobago in CARICOM’s trade is due to its exports of oil, gas and petroleum products. It also benefits from the advantage its private sector companies enjoy from cheaper costs of energy that reduce their costs of production and make them more competitive within CARICOM.

It is telling that the Economic Partnership Agreement (EPA) between CARIFORUM

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countries (CARICOM plus the Dominican reached US $4.75 billion in 2013. Yet, many The starting point to expanding trade both Republic) and the European Union (EU) has of the 14 independent CARICOM countries regionally and globally is the implementation produced no great benefits to the Caribbean are currently experiencing very low or no of the Caribbean Single Market. This region. Exports of goods from Caribbean economic growth, extremely high ratios of includes removing all restrictions on the countries to the EU have remained stagnant, debt-to-Gross Domestic Product (GDP) and movement of goods, services and capital, dropping from US $5.8 billion in 2007 to declining foreign exchange earnings. Countries and the right of establishment by nationals US $5.7 billion in 2011. With regard to with very low or no growth in percentage and companies across all CARICOM trade in commercial services, CARIFORUM terms in 2012 were Dominica -1.7, Jamaica countries. It is very doubtful that the members exported US $6.2 billion in 2009 -0.5, Barbados 0, Saint Lucia 0.5, Grenada requirement for free movement of people declining to US $6 billion in 2011. It is said 0.6, Trinidad and Tobago 1.5 and the Bahamas will be achieved anytime soon, except among that the Caribbean private sector has failed to 1.8. Belize and Guyana were the only two with the seven members of the Organisation of take advantage of the opportunities the EPA reasonable growth at 5.3 and 4.8 respectively. Eastern Caribbean States (OECS), but the offers, but the private sector has complained removal of all other restrictions could spur of severe restrictions on market access. In In 2013, only four countries were exceptions production integration, i.e., the combination any event, the existence of the EPA has not to those with unsustainably high debt- of natural resources with capital and know- resulted in greater exports of Caribbean goods to-GDP ratios. They were: Haiti 21.3%, how drawn from many Caribbean countries and services to Europe. Suriname 29.2%, Trinidad and Tobago 30.6%, in the establishment and operation of and Bahamas 56.3%. Of the others, Jamaica Caribbean enterprises that are competitive A protracted negotiation between Canada 138.9%, Grenada 115%, St Kitts and Nevis internationally and within Caribbean and CARICOM countries for a Free Trade 104.9%, Antigua and Barbuda 92.9% and markets against external competitors. Agreement (FTA) floundered at the end of Barbados 92% have the highest debt-to-GDP June 2013 and the arrangement under which ratios. At the lower end of the unsustainable The reality of Caribbean trade is that protected many regional goods entered the Canadian high debt-to-GDP ratio are Guyana 63.9%, markets in the EU, Canada and the US are market duty-free is now over. Canada was Dominica 74.95%, Belize 75.5%, and St history; the era of strong competition in trade one of the few developed country markets Vincent and the Grenadines 76.4% (source has arrived and small inefficient manufacturing with which CARICOM countries enjoyed IMF and World Bank). It should be noted that and agricultural sectors in individual countries a trade surplus. In 2012, the value of the in the case of Haiti, while its debt-to-GDP cannot survive. However, trade can still enhance trade surplus was US $735.1 million with ratio is low, it has the highest rate of poverty regional growth if CARICOM countries and only a portion benefitting from duty-free at 77% of its population. Other countries the DR act together to jointly develop existing treatment. But, CARICOM’s exports to with high levels of poverty are: Belize 41.3%, and potential agricultural, mineral, industrial Canada represent only 4% of its total export Grenada 37.7%, Guyana 36.1%, and St and services products which can be produced of goods–Caribbean governments might, Vincent and the Grenadines 30.2%. These competitively. therefore, have calculated that they could walk figures alone should be strong reasons for away from it. Not so with the United States CARICOM governments to swiftly involve What is required is a well-organised meeting which accounts for more than 50 % of regional the private sector and financial institutions of Caribbean entrepreneurs, the Caribbean trade. The failure to conclude an FTA with in acting to reduce the enormous food import Development Bank, national development Canada, largely because it had no development bill by greater trade amongst them in food banks and visionary commercial banks component and Caribbean governments fear grown within the region. with high-level government representatives loss of revenue from the removal of tariffs on to ascertain the opportunities that exist for Canadian imports, portends great difficulties Inadequate intra-regional transportation, greater inter-regional and global trade. This in negotiations with the United States–the packing and storage facilities, and meeting will also facilitate the creation of Caribbean’s biggest trading partner–when the dependence on high cost fuel oil and diesel single Caribbean-owned companies that present benefits under the US Caribbean Basin remain huge obstacles to trade in all goods could operate across borders to produce Trade Partnership Act ends. and they can only be overcome by private products that could be traded competitively, sector investment, access to capital from and to identify where the capital could be On top of all this, the Caribbean has an development and commercial banks, and raised to finance these operations through astronomically high food import bill that government facilitation. joint private sector-government backing.

Sir Ronald Sanders is a Consultant, Senior Fellow at London University and former Caribbean Ambassador and trade negotiator at the World Trade Organisation. www.carib-export.com 15 Pulse OF THE CARIBBEAN Guyana: The next economic tiger? BY DR PETER CLEGG

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Guyana is the third smallest country in years to strengthen ties. For instance, a partial growing levels of trade, aid, and foreign direct South America, located on the north-eastern abolition of visas was agreed in 2003; a new investment. coast of the continent. Its total population is border-crossing was established in 2009 when also small, around 800,000 (giving Guyana a bridge was built over the Takutu River; and in However, there are concerns that Guyana’s one of the lowest population densities in February 2013 a joint Working Infrastructure development is being undermined by its internal the Americas), with 90% living within 10 Group met for the first time to discuss a problems of weak state capacity, corruption, miles of the coast. Although Guyana is the series of projects to aid economic integration. and discrimination. For example, Transparency third poorest country in the Americas, it Relations with Venezuela and Suriname are International’s 2012 Corruption Perceptions has a tremendous stock of natural resources, also deepening, despite continuing border Index ranks Guyana 133 out of 174 countries and it is highly anticipated and projected and maritime disputes with both countries. assessed (the second most corrupt country in that Guyana’s economy has reached take- Venezuela provides significant opportunities the Caribbean after Haiti). While the World off phase and high growth and sustained through Petrocaribe (the oil supply and Economic Forum’s Global Competitiveness development are now possible. development programme), while there is Report 2012-2013 identified corruption as the significant “back-track’’ or informal trade with second largest barrier, after crime and theft, for Agriculture, the traditional economic sector, Suriname. Guyana also has growing interests in doing business in Guyana. In addition, Ralph remains strong, while mining and forestry several regional organisations that incorporate Ramkarran, a former stalwart of the governing are expanding quickly. Mining, mainly of Latin America, including the Union of South People’s Progressive Party/Civic (PPP/C), claimed bauxite and gold, contributes around one- American Nations (UNASUR). an awareness “of enough verifiable cases of fifth of GDP and Guyana has seen healthy corruption’’ to be satisfied that it is “pervasive.’’ growth in these industries in recent years. UNASUR, which, in addition to South The mining of manganese, uranium, and rare American states also includes Guyana and The associated threat of drug trafficking earths is also being explored. It is expected, Suriname (considered Caribbean countries is also a concern. In its 2013 International based on current exploration, that significant although geographically located on the South Narcotics Control Strategy Report, the US quantities of oil will soon be found in the American mainland) was created in 2008 Department of State noted, “The influence of Suriname-Guyana basin. Meanwhile, logging and has a mandate to bring the countries of narcotics trafficking is evident in the political in the tropical rainforest that covers around the region closer together via infrastructural and criminal justice systems…Traffickers are 75% of the country’s land area has increased development. Other initiatives include plans attracted by the country’s poorly monitored appreciably with the granting of concessions to for a single market by 2019 and the promotion ports, remote airstrips, intricate river networks, several Asian companies. Owing to the growth of regional security. Owing to the clear policy porous land borders, and weak security sector in the gold sector, in particular, the national agenda of UNASUR, a deepening institutional capacity.’’ A further concern is the perceived economy has strengthened. Guyana grew by structure, and a substantial allocation of funds, marginalisation of the indigenous Amerindian an estimated 5.4 % in 2011 and 4.8% in 2012, the organization could provide an important community whose land is being exploited in and it is predicted to grow by 5.5% in 2013 and avenue through which Guyana extends its the quest for overall economic development. 6.0% in 2014, thus recording the highest rate links into South America as well as affording of growth among CARIFORUM countries. Guyana the privileged role of the bridge It is evident that the government of between South America and the Caribbean. Guyana has undertaken significant reforms The strengthening domestic economy is being Beyond the region, Guyana maintains close and strategic changes to enhance the well supported by Guyana’s increasingly ties with the United States. Guyana trades competitiveness of Guyana’s economy. It is vibrant foreign policy overtures. The more with the US than with any other also clear that more work needs to be done, relationship that Guyana has with Brazil is country. Further, China and India are both but all indicators show that the country is important and efforts have been made in recent taking an increasing interest in Guyana, with heading in the right direction.

Dr. Peter Clegg is a Senior Lecturer in Politics at the University of the West of England, Bristol. He has been a Visiting Fellow at the Institute of Commonwealth Studies in London, and a Visiting Research Fellow at the Sir Arthur Lewis Institute of Social and Economic Studies (SALISES) at the University of the West Indies in Jamaica.

www.carib-export.com 17 Pulse OF THE CARIBBEAN Trinidad & Tobago: Moving beyond the petro-economy BY DR PETER CLEGG

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Trinidad and Tobago’s economy is emerging and volumes are increasing. Another market Forum’s Global Competitiveness Index. In slowly from a period of stagnation precipitated is Latin America, particularly Argentina and 2013 Trinidad and Tobago was ranked 92 out by the global economic downturn and Brazil. Along with the exploitation of new of 148 countries. The government is alert to weakness in the country’s petroleum sector. markets there are growing diplomatic links the problems but addressing them will take According to the Economic Commission for with these regions. Other reforms include a concerted action. Latin America and the Caribbean (ECLAC) number of new incentives from January 1, Trinidad the economy contracted by 4.4% in 2009, 2014 to encourage further investments in the A further challenge to the government is gang- grew by 0.2% in 2010, but fell back again in energy sector; a new corporate governance related crime. A recent report by the Council on 2011 by 2.6%. However, in 2012 recorded code to promote more transparency and better Hemispheric Affairs (COHA), a Washington- & Tobago: Moving growth was 1.5%, and it is estimated at 1.6% company practices; amendments to the pension based US think-tank, highlighted the problem, in 2013 and projected to be 2.1% in 2014. system; and the passing of the CARIFORUM— and in another report the UN Development European Community Economic Partnership Programme (UNDP) concluded that a 1% Growth in 2013 was assisted primarily by the Agreement Bill. Further, the government has reduction in youth crime would boost tourism non-petroleum sector, whose contribution implemented a Public Sector Investment revenue by US $35m per year. As such, the need to overall GDP was 60.2%--its highest share Programme to increase capital spending. to address gang crime is extremely important. since 2005. Within the non-petroleum sector, services were most important, followed Another area in which the government has In 2011 a state of emergency was introduced by manufacturing and agriculture. The attempted to undertake reform is in relation to from late August to early December, and petroleum sector, meanwhile, was projected the petroleum subsidy. Trinidad and Tobago although 448 persons were arrested under to experience only very slight growth in 2013 has long provided assistance to local consumers the Anti-Gang Act during this period not (0.5%), but this would be the first expansion so fuel costs can be contained. The subsidy has a single gang member was charged and of the sector in the last three years. Increased grown in recent years and the Kamla Persad- convicted. Indeed, concerns have been production of natural gas, liquefied natural Bissessar administration has tried to reduce expressed in the local media and elsewhere gas (LNG), and methanol together with the current payments and the arrears on the about the low detection and conviction rates. higher export prices for oil and gas were the account, with moderate success. However, in In response the government has begun to drivers behind the growth. Inflation and a report published in October 2013 the Inter- introduce a range of anti-gang measures, unemployment are low, and while the country American Development Bank (IDB) advised including a watch list of gang members who is running a fiscal deficit that is feeding into that Trinidad and Tobago should remove all receive contracts from the State; the creation higher levels of public sector debt, both are fuel subsidies as they are undermining labour of a Criminal Gang Intelligence Unit; joint manageable in size. productivity and the development of a non- patrols by members of the Trinidad and energy business sector. The IDB argued that Tobago Defence Force and the police; and In order to strengthen the fundamentals of “Most of it [subsidies] goes to inefficient public civil assets forfeiture legislation to cut off the economy, the government is instituting enterprises, more than 130 overlapping social gang access to funding. several important policy reforms. One is the programmes, and the fuel and electricity gradual re-directing of LNG exports away from subsidy.” Trinidad and Tobago’s gasoline at the Overall, it is clear that Trinidad and Tobago the United States, which is becoming more tank costs about 25c (US) per litre– this is one has tremendous economic advantages and self-sufficient, towards other markets. One of the lowest prices in the world. Some of the future potential, but more needs to be done such market is Asia. China began importing competitiveness problems can be seen with its to improve aspects of the economy and to natural gas from Trinidad and Tobago in 2009, below par position on the World Economic reduce crime.

Dr Peter Clegg is a Senior Lecturer in Politics at the University of the West of England, Bristol. He has been a Visiting Fellow at the Institute of Commonwealth Studies in London, and a Visiting Research Fellow at the Sir Arthur Lewis Institute of Social and Economic Studies (SALISES) at the University of the West Indies in Jamaica.

www.carib-export.com 19 Pulse OF THE CARIBBEAN

Jamaica: From debt to development? BY DR PETER CLEGG

The economy of Jamaica is in great the IMF in February 2010 for a Standby However, much more work needs to be done difficulties and has been for some time. Loan Agreement worth US $1.27 billion. and the underlying tension between the very Jamaica is one of the most indebted In return, the government committed to high and barely sustainable debt burden on countries in the world with debts totalling reducing the level of debt and interest rate the one hand, and encouraging growth on the US $19 billion, equivalent to 140% of Gross costs and reforming the financial sector. other has to be addressed. Domestic Product (GDP). Servicing of Still, the IMF agreement stalled and the the debt accounts for about 50% of total last disbursement authorised by the Fund Debt continues to displace much needed budgeted expenditure, and 45% of the took place in January 2011. The present investments and prevents long-term growth. 2012/13 budget was financed by borrowing. People’s National Party (PNP) government Nevertheless, any serious attempt to reduce the Further, growth has been sluggish for several returned to the IMF and agreed to a four- debt through public spending cuts also damages years, with a 1.5% decline in 2010, 1.3% year Extended Fund Facility (EFF) worth Jamaica’s growth prospects. The particular growth in 2011, but another decline of 0.3% US $932 million in May 2013. focus on spending cuts is unfortunate as the in 2012. Unemployment and poverty levels country has been running primary budget are high, and the external current account The PNP believes there is no alternative. surpluses for the last 20 years. As the Center deficit has widened. The International As Finance Minister Peter Phillips argued for Economic and Policy Research argued Monetary Fund (IMF) noted that low in February 2013, “Quite frankly ... this is in 2011, the most important factors causing economic growth, declining productivity, essentially a matter of the survival of the budget targets to be missed are “lower-than- and reduced competitiveness were key Jamaican nation as a viable nation state.’’ projected revenue and higher-than-anticipated problems, but also linked these to Jamaica’s interest payments—not increased spending.” “unsustainable debt burden.’’ To secure the EFF, the government is pushing through a series of difficult reforms, Under these conditions, it is not surprising Serious attempts are now being made to turn including a debt swap, tax raising measures, that several key sectors of the economy the economy around. However, recalibrating and reducing the public-sector wage bill. Eight have been under-performing. In 2012 these the economy and reducing debt levels is a months into the agreement the IMF stated included mining and quarrying, which fell by real challenge. The last Jamaica Labour Party that “overall policy implementation is strong” 9.1% (contributing 2% to GDP); construction (JLP) government signed an agreement with and that performance targets were being met. dropped by 3.8% (contributing 7% to GDP);

20 www.carib-export.com Pulse OF THE CARIBBEAN

and transport, storage and communications by The Executive Board of the IMF. Over this public debt and strengthening of its revenue contracted by 1.6% (contributing 11% four-year period, the economic reform was administration. to GDP). Other sectors grew positively; supported by a US$932 million arrangement agriculture, forestry and fishing grew by 2.6% under the Extended Fund Facility. The Another and quite different source of crucial (contributing 7% of GDP), while hotels and completion of the review enables an immediate support for Jamaica is being provided by restaurants grew by 1.8% (contributing 6% of disbursement of an amount equivalent to Venezuela. Venezuela provides about one- GDP). The first quarter 2013 data suggested US$68.8 million to further aid in the long third of Jamaica’s total oil consumption at that the goods producing sectors (agriculture, road to economic recovery for the island. a discounted price under the Petrocaribe mining and quarrying, and construction) initiative. In addition, since 2005 Jamaica declined while the service sectors remained Jamaica’s economic performance has has received US $2.4 billion in the form of flat. For example, tourist arrivals saw little been consistent with the programme, and long term loans based on its oil purchases. improvement year-on-year. structural reforms are progressing. Based on Funds have been invested in improving the the aforementioned review, fiscal performance country’s physical infrastructure, investing in So the macroeconomic position of Jamaica continues to support the debt reduction renewable energy resources, and supporting is extremely challenging, but there are hopes objective. Moreover, the external accounts the operation of several public bodies. that the IMF-backed reforms will provide are improving, economic growth is continuing some relief. Foreign exchange inflows from the with an expected growth rate of over 1% over Very importantly, resources have been allocated IMF, the World Bank and the Inter-American the 2014-2015 period, inflation is trending for the refinancing of Jamaica’s domestic Development Bank will help. It is also expected down to about 8 % and is accompanied by public sector debt. Jamaica has reportedly that IMF support more generally will inspire steady growth in employment. Jamaica has accessed Petrocaribe funds for recurrent greater confidence in the economy. not however fully recovered from years of expenses not limited to debt servicing. So the poor economic performance and as such, Jamaican economy is being supported in a In September, 2014, Jamaica completed its must continue along its path of fiscal variety of ways and the IMF predicts that it 5th staff review of its economic performance discipline, modernization and reduction of its will grow by 0.4% in 2013 and 1.2% in 2014.

Dr Peter Clegg is a Senior Lecturer in Politics at the University of the West of England, Bristol. He has been a Visiting Fellow at the Institute of Commonwealth Studies in London, and a Visiting Research Fellow at the Sir Arthur Lewis Institute of Social and Economic Studies (SALISES) at the University of the West Indies in Jamaica.

www.carib-export.com 21 Pulse OF THE CARIBBEAN OECS: The quest for economic resilience BY DR. PETER CLEGG

The six independent countries of the and Barbuda and Grenada 90%; and the other The fiscal deficit dropped from 18% of GDP Organisation of Eastern Caribbean States countries all above 70%. In January 2013, Sir in 2009 to just over 1% in 2012 while the debt (OECS) are undertaking significant reforms K. Dwight Venner, Governor of the Eastern ratio fell from 102.5% of GDP to 89%. The in an attempt to improve their economies. Caribbean Central Bank, warned the region IMF also noted that the economic recovery Over the past several years, all countries have was “now at a tipping point.” He argued “we is “picking up speed’’—growth is estimated been hit hard by the global financial crisis. must prepare for significant adjustments to our to be 1.7% in 2013 and 3.2% in 2014. current policies and modes of doing business.” However, the IMF cautioned that “significant From 2009 to 2012 the OECS economy challenges remain” and it recommended that contracted by 7.6%. Performance was These changes are starting to happen. Several further reforms were necessary including the undermined by a lacklustre tourism sector; countries, particularly Antigua and Barbuda, elimination of tax exemptions, a broadening especially cruise ship tourism, manufacturing, with assistance from the International of the tax base and civil service reform. Indeed construction, and agriculture. The result has Monetary Fund (IMF), are narrowing their countries across the region are trying to been high unemployment and growing fiscal fiscal deficits. In June 2013, the IMF described improve their fiscal and debt sustainability. For deficits. In 2012, for example, Dominica had Antigua and Barbuda’s three-year agreement example, Saint Lucia has widened its tax base a deficit equivalent to 12% of GDP. In terms with the IMF as a success. The IMF said that and increased revenue via the introduction of of total public debt as a percentage of GDP, St the country had “successfully completed” the value added tax (VAT). Grenada, meanwhile in Kitts and Nevis has a figure of 130%; Antigua programme despite “considerable challenges.’’ March 2013, suffered a debt default and is now

22 www.carib-export.com Pulse OF THE CARIBBEAN

implementing an IMF-supported economic spending by most governments. Only in So there are hopes that domestic restructuring reform programme. Antigua and Barbuda and in St Vincent and the and a more benign international economic Grenadines, where major works are underway environment will help OECS countries recover The reforms being initiated across the OECS are for airport construction, was there modest some of their economic strength. According to coming at a time of moderate recovery in key growth in the sector. the Economic Commission for Latin America sectors of the economy. The improving situation and the Caribbean (ECLAC) there will be a in North America is an important contributing The continued support of China, Taiwan, recovery in 2013, perhaps with growth of factor. According to the Caribbean Tourism and Venezuela will also be important. In 2%, but this masks significant variations in Organisation tourist arrivals from the United relation to cooperation with Venezuela, four performance. Saint Lucia and St Kitts and States to Saint Lucia and Grenada increased by OECS countries, Antigua and Barbuda, Nevis are expected to see GDP growth of almost 11% compared to 2012, while tourist Dominica, Saint Lucia, and St Vincent and around 2.5%, but Grenada and St Vincent and numbers from Canada to Antigua and Barbuda the Grenadines, are part of Bolivarian Alliance the Grenadines will barely reach 1%. rose by over 28%. However, it should be noted for the Peoples of Our America (ALBA). that the recovery in tourism across the OECS is Also, every OECS country benefits from the Indeed, serious underlying challenges remain, still quite weak. In terms of agriculture, there is Petrocaribe initiative, whereby signatories can particularly in relation to the high levels of evidence of some revival after the devastation by purchase Venezuelan oil at a discounted price. indebtedness. Hurricane Tomas in 2010, and the more recent At a time of economic hardship and relatively infestation of Black Sigatoka disease which high oil prices the assistance from Venezuela If OECS governments are forced to cut affects bananas. The sector grew by about 5% is very important indeed, and despite deeper into their budgets there is a risk that in 2012, with Grenada and Saint Lucia doing concerns over the medium-term viability of the cherished and long-standing economic particularly well. Likewise manufacturing saw Petrocaribe because of Venezuela’s recent welfare model that has underpinned Eastern growth of 3.4%, but construction contracted economic problems its government has given Caribbean development for several decades in part because of the reductions in capital commitments that support will continue. will become unsustainable.

Dr Peter Clegg is a Senior Lecturer in Politics at the University of the West of England, Bristol. He has been a Visiting Fellow at the Institute of Commonwealth Studies in London, and a Visiting Research Fellow at the Sir Arthur Lewis Institute of Social and Economic Studies (SALISES) at the University of the West Indies in Jamaica.

www.carib-export.com 23 Business issues are complex and ever-changing. Work with an advisor who understands the territory.

The team at KPMG in Barbados and across the region can provide the tools necessary to navigate the challenges of business in the Caribbean, through forward- thinking advice and applications in audit, tax and advisory services.

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Caribbean Export - OUTLOOK.indd 1 9/24/2014 11:55:05 AM trade and export hotspots TRADE & EXPORT HOT SPOTS the unexploited gateway to Brazil BY LINCOLN PRICE Billions of dollars are being invested by the US in Brazil. Here’s how regional firms can capture their share.

26 www.carib-export.com TRADE & EXPORT HOT SPOTS

The Brazilian economy recorded a strong to Brazil was Trinidad and Tobago, accounting of products. Other top exporters in 2011 were performance during most of the 2007-12 for over 98% of export sales in 2012. Guyana The Bahamas, St Kitts and Nevis, Jamaica and period, with real GDP growth averaging 3.6% and Suriname have attempted to spur trade Barbados. Suriname ranks as the seventh highest a year. Growth benefited from strong domestic with Brazil through trade contracts called Partial exporter to Brazil, with Guyana outperforming demand which also reflected lucrative import Scope Agreements (PSAs). Dominica, Antigua and Barbuda and Grenada in demand. the Brazilian market. The trade deficit between These PSAs provide limited duty-free or reduced- Brazil and CARICOM has deteriorated from CARICOM-based firms generated US $705 duty treatment for a specific list of products, US $377million in 2001 to US $1.7 billion in million in sales to Brazil in 2012 compared to US versus a comprehensive trade agreement which 2012. (Table 1.) $22 million in 2001. CARICOM’s top exporter would provide broad duty relief for a wide set

Table 1: CARICOM-Brazil merchandise trade performance (US $m)

6000

5000

4000

3000

2000

1000

0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 BZR Imp 22 38 49 101 117 149 174 378 196 529 371 705 BZR Exp 399 619 780 1238 2467 2354 2447 4812 3180 3703 4171 2481

Source: TradeMAP retrieved November 1, 2013.

In 2012, Brazil’s top 10 merchandise imports from CARICOM were:

1. Liquified natural gas 6. Portland cement 2. Anhydrous ammonia 7. Undenatured ethyl alcohol 3. Methanol 8. Melamine 4. Hot rolled bars/rods of iron/steel 9. Other essential oils 5. Aluminium oxide 10. Kaolin and other kaolinic clays, whether or not calcined

It is important to note that CARICOM’s However, if the fifth additional protocol of CARICOM-based firms can consolidate their top 10 exports to Brazil were not covered the Brazil-Guyana PSA is approved, many of positions and seek to grow market share. A by either PSA from Guyana or Suriname. Guyana’s and CARICOM’s key merchandise number of trade opportunities are proposed The PSAs do not cover most of Guyana and exports to Brazil would be covered. for Guyana- and Suriname-based firms and Suriname’s most competitive products nor for other CARICOM member states through do they cover the current exports from the Product Opportunities these countries. These opportunities are rest of CARICOM. As a result, Guyana and CARICOM can exploit a strategic window based on the import demand in Brazil as Suriname are not adequately exploiting their to penetrate the Brazilian market through well as the global export capacity of firms in trade opportunities with Brazil and therefore targeting the Olympic Games during 2016. Guyana and Suriname, even though currently the PSAs between Brazil and both CARICOM The 2014-2016 period can also be explored no trade to Brazil was observed up to 2012 members are not having the desired impact. as a market entry period, after which in these particular product areas. (Table 2.)

www.carib-export.com 27 TRADE & EXPORT HOT SPOTS

Table 2: Market Opportunities in Brazil for CARICOM products

Brazil’s Total Imports CARICOM’s Exports to CARICOM’s Global Product 2012 Brazil Exports Opportunities for Guyana Sauces US $24mn 0 US $5.2mn Rum and tafia US $1 mn 0 US $161.5mn Pasta US $3.5mn 0 US $3.2mn Carton boxes US $43mn 0 US $9mn Medicaments US $2.6bn 0 US $68.3mn Chewing gum US $2mn 0 US $0.7mn Opportunities for Suriname Mineral/aerated waters US $0.4mn 0 US $72.6mn Toilet paper US $6.6mn 0 US $10.9mn Tableware and US $58mn 0 US $1.3mn kitchenware of plastics Beer made from malt US $45mn 0 US $63mn Disinfectants US $17mn US $0.5mn Mixtures of juice US $3.8mn US $5.5mn

Source: International Trade Centre tradeMAP Database, retrieved December, 2013

The export opportunities targeted above other CARICOM member states can exploit. agencies; peripheral political importance by represented over US $200m in potential The specific markets in Brazil are suggested Heads of Government; and sluggish intra- merchandise export sales to Brazil in the conclusion to this article. CARICOM merchandise trade. The study based on import patterns in Brazil and revealed that the main factors impacting the CARICOM’s global exports. These sectors Trade Challenges decision to export to Brazil included access to: were selected based on the import demand Firms interviewed in a recent study by • market information. in Brazil observed between 2001 and 2011. Caribbean Export proposed a number of • trade financing. Additionally, the export competitiveness of reasons for the poor market penetration in • matchmaking support. these sectors was assessed as well as the brand Brazil. The reasons cited, amongst others, differentiating potential. These export sectors included poor transport logistics; poorly Respondents were generally unaware of provide opportunities outside the Trinidad implemented trade agreements between Brazil, most of the trade support institutions and Tobago-centred energy cluster which Guyana and Suriname; estranged trade support outside of their own national institutions.

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They generally saw the provision of trade Development Bank Compete Caribbean market is now seen as too competitive for small development services as the government’s job, Business Climate reform programme to fund niche exporters in Guyana and Suriname and were not willing to pay for these services. an 18-month trade development programme and the infrastructural improvements has All persons polled support the establishment focussing on customs cooperation; a trade improved access into this market for the rest of a quick response mechanism to address promotion desk exchange programme; and of Brazil. their trade concerns in the Brazilian market. business matchmaking. Sao Paulo and Rio de Janeiro are difficult It is suggested that CARICOM immediately CARICOM firms should see Brazil as several markets to crack based on the self-sufficiency of pursue the following actions: distinct markets rather than one seamless market. the Brazilian private sector in those economies, i. Expedite a quick response Market Boa Vista is the largest Northern Market in Brazil, and the dense red tape. However, these markets Intelligence system currently being developed while Manaus is the centre of an industrial plan cannot be ignored as they are the fulcrum by Caribbean Export; through the Superintendência da Zona Franca of a significant public sector investment ii. Incorporate sauces; pasta; aerated de Manaus (SUFRAMA) to improve the free programme for infrastructure improvements beverages and beer into the Caribbean Kitchen zones competitiveness and transform it into an associated with the FIFA World Cup in 2014, programme currently being executed by industrial district for the southern continent. and the IOC Olympic Games in 2016. Caribbean Export; Bahia is seen as a market with significant affinity iii. Assist in the establishment of to the Caribbean, and is perceived as the base for The multiplier effects estimated in a study trade desks in the Guyana Private Sector the African Brazilian population. by Ernst and Young put the total economic Commission and the Suriname Business impact at US $120 billion. President Rousseff Forum to serve as information and Boa Vista and Manaus were viewed as middle also announced an additional US $66 billion matchmaking centres for CARICOM firms term markets in a 2003 Guyana Marketing infrastructure spend in Brazil for the next interested in trading with Brazil; Corporation (GMC) Northern Brazil 15 years to further enhance infrastructure iv. Engage the CARICOM Regional study. The study was not very optimistic developments in the economy. The bulk of Organisation for Standards and Quality on the near term possibilities, but seemed these investments will be targeted at Sao Paulo (CROSQ) concerning digitisation and to suggest that these northern markets were and Rio de Janeiro, with Manaus also figuring translation (from Portuguese to English and opportunities for Guyana based on their strongly in the improvements. vice versa) of technical regulations (including inaccessibility to the rest of the country. The labelling rules) in Brazil; report suggested that Guyana intensify road It is suggested that CARICOM-based firms v. Engage COPA Airlines Ltd to assess and other infrastructural projects and target position themselves in Brazil through willingness to engage in missions where greater business matchmaking opportunities Suriname and Guyana to benefit from some journalists can visit the markets of Guyana in Belem, Boa Vista and Manaus. It is of the “trickle down” effects of this US $120 and Suriname; now suggested that Belem is not a strong billion wave of economic activity in Sao Paulo, vi. Engage the Inter-American opportunity for trade development as this Rio de Janeiro and other provinces of Brazil.

Lincoln Price is a Jamaican-born Economist and Statistician with over 16 years experience in Market Research, Business Negotiations and Strategic Planning in the public sector, private sector and academia. Previously employed at the CARICOM Office of Trade Negotiations (OTN) as the Private Sector Liaison, his responsibilities were geared at maximising the benefits of trade agreements for the region’s private sector. www.carib-export.com 29 TRADE & EXPORT HOT SPOTS expanding caribbean exports to fast growing African economies BY CLEOPATRA MCDONALD

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Africa’s economic growth accelerated in the economic benefit countries reap when the and lifestyles are resulting in increasing years following 2000, making it the world’s share of the working-age population rises consumer preference for convenience, second fastest-growing region after Asia. Over relative to children and old people, implying processed and packaged food products. the last decade, six of the world’s 10 fastest lower support costs for dependants and an growing economies were African. While increase in disposable income. Within the food sector, there is differentiated resources contributed less than a third of total demand at the top and bottom ends of the Gross Domestic Product (GDP) growth in the The upshot of these trends is that they income spectrum. In South Africa, the most 2000s, the most significant contributors to afford discretionary spending for a wide basic fast-moving consumer goods, such as African economies growth are changing, with a more apparent range of consumer goods and services. Since soaps and cleaners, are buoyed by large-scale reliance on domestic demand. The African 2000, consumer spending in Sub-Saharan social grants provided by the government, market opportunity is concentrated, with 10 of Africa has grown at a steady 4% per year, expanding by an average of just over 17% 54 countries—including Ghana, South Africa reaching nearly US $600 billion in 2010, between 2012-2016. At the upper end of the and Nigeria—accounting for 81% of Africa’s and is projected to reach US $1.4 trillion by scale there is an aspirational drive to increase private consumption in 2011. 2020; with the largest increases expected in spending on status purchases such as high-end lifestyle/ home-goods, clothing, food, mobile goods and services and premium alcohols. The countries of the Caribbean Forum of the telecommunications and entertainment. There is a visible shift from traditional beer African, Caribbean and Pacific (ACP) states to spirits, and premium spirits specifically have (CARIFORUM) have already begun to take The telecommunications sector has demonstrated strong volume growth amongst advantage of these growing economies. With the undergone profound changes during middle class consumers. Entry barriers lie discovery of crude oil in Ghana, Republic Bank, the past decade, with the opening of less with technical barriers, than with the a substantial player in the oil and gas sector in the sector to competition, the creation resources required for building new brands Trinidad and Tobago, and in mortgage markets of national regulatory authorities, the through marketing and advertising. Moreover, throughout the Caribbean-has incrementally privatization of incumbent operators intense competition for consumers’ disposable increased its stake from 8.9% to 40% in the and the emergence of the first private income, high freight costs from the Caribbean Ghana-based HFC Bank, making it the largest operators-all of this resulting in a boom and price sensitivity in the food product market single stakeholder. However, many more in mobile telephony. Mobile phones have are important determinants of the potential for prospects still exist for the Caribbean in Africa. far outstripped computers as a means of market entry by CARIFORUM firms. accessing the Internet. Social networking is the leading purpose for which the Internet However, existing exports prove that TRENDS: DEMOGRAPHIC is used, followed by online music/video perceived challenges are not insurmountable. DIVIDEND, CONSUMERISM content. The implication of increasing GraceKennedy has increased its exports to AND TELECOMS BOOM mobile Internet usage is that employing Ghana, with soft drinks and canned meat As African economies grow, so does the Information Communication Technologies products accounting for the bulk of sales. middle class, resulting in the continent now (ICT) as a means of building markets has The similarity in flavour profile of West having the fastest growing middle class in the improved the potential distribution of Indian and West African cuisines has world. Thirteen percent of the population are goods and services in the three mentioned contributed to the surge in sales, and having currently categorised as stable middle class, markets. started exports to Nigeria in late 2013, the and this number will grow to 42% (1.1 billion) company has identified other West African by 2060. By 2016, some 11 million South countries such as Cameroon as potential African households are expected to have FOOD AND BEVERAGE export destinations. annual incomes of R89, 500 (US $10, 000). Food retailers benefit first from increased earnings, since consumers move from an South Africa’s major retailers such as Further, Africa boasts the world’s youngest informal retail environment to a formal Shoprite, Spur, Pick n Pay, Woolworths, and population, with two-thirds of its total one. In South Africa, food sales have shown Truworths are focused on a varied growth population under 25 years of age; and it is significantly steady growth, accounting for strategy consisting inter alia, of converting the only continent that will double in size, 54% of all sales in 2011; in that year, the informal trade into formal retail with reaching 2 billion people by 2045. South country’s aggregate retail sales surpassed particular attention to expanding into the Africa has one of the youngest populations R1 trillion for the first time in history, and rest of Africa, making South Africa a major globally, with the average age of the population are likely to hit R1.46 trillion by 2016. In retail competitor. This presents a unique estimated at 24.9 years. In Ghana, the total Ghana, retail food sales have grown about opportunity for CARIFORUM food and median age is 17.9 years and Nigerians 10% annually in the last 10 years and there is beverage manufacturers to reach an increased between 20-40 years account for 47% of the a high demand for imported food products, number of Africans through establishing country’s population. Evidence points to the particularly consumer-ready products. In relationships with large South African retailers potential for a “demographic dividend”, the all three countries, changing demographics expanding throughout the continent.

www.carib-export.com 31 TRADE & EXPORT HOT SPOTS

CULTURAL INDUSTRIES: of promotion in large territories given logistics consumer market, their spending power MUSIC & ENTERTAINMENT and exchange rates. The risk of piracy remains, translates into an opportunity for luxury and These above trends have led to broadening owing to weak institutional and governance experience-based tourism exports. The affluent access to global culture and an increasing frameworks. Of the three countries, South middle and upper classes are exhibiting their demand for cultural and creative goods and Africa has implemented a strong music rights increased purchasing power in major tourism services. There is increased usage of digital audio administration regime, but in Nigeria and destinations and experience-based holidays platforms including online radio, MP3 players, Ghana enforcement institutions are inadequate might be marketed around regional music and and podcasting, and a concomitant increase in or absent. cultural festivals. Tourism exports present a digital sales. The potential for cultural exports challenging but not impossible proposition. and collaborations is robust, and unique cultural Existing policy recommendations for product products and services with a compelling story- TOURISM innovation through a single-destination including the African-Caribbean connection Africa is one of the fastest-growing markets for platform could be considered in this context; and historical cross-pollination between air travel behind Asia and the Middle East. Of however this necessitates the improvement African and Caribbean musical styles-can the three countries, South Africa has a more of intra-CARIFORUM air accessibility and fare well with the correct promotional strategy. robust outbound tourism market, owing to its strengthened marketing and brand positioning. However, most musicians do not earn a larger middle class, stronger economy and more living from recorded music but rather from stable national airline. There was a 24% growth Although qualified by inherent risks of performances or working in other creative in outbound travel and tourism recorded in 2011 market entry, African markets experiencing enterprises (theatre, film, commercials), and the number is expected to continue growing consumption-led growth present some unique making this sector the most important. to 6.9 million by 2017. For the majority of the opportunities for CARIFORUM exports, and population, outbound tourism is a price-based as goods and services with competitive advantage Bootstrapping artists would face challenges opposed to an experience-based choice and much could find a market amongst the continent’s exploiting the music market not least because tourism remains limited to local and regional increasingly moneyed consumers. Premium of the costs and restrictions of doing business destinations. For these market segments, cost, alcohol, food and beverage products certainly and touring in foreign territories, including distance, time and low information are barriers bear promise, but also to a lesser extent do travel, attaining visas and work permits. Also the lack to entry for CARIFORUM tourism exports. and cultural tourism and services. In sectors of a professional live music circuit, and limited where Caribbean firms hold strong expertise, bandwidth could impede marketing efforts. Although the highest earners and the affluent fast-growing African economies might just be Artists would also need to consider the costs still account for a small proportion of the among potential non-traditional export markets.

Cleopatra McDonald is a trade lawyer and consultant with several years’ experience in trade policy formulation, review and negotiations. She has worked as a trade advisor on the Economic Partnership Agreement negotiations between the European Union and the East and Southern Africa Group, and as a legal expert on short- term trade and development projects in Sub-Saharan Africa and the Caribbean.

32 www.carib-export.com

TRADE & EXPORT HOT SPOTS satisfying the German demand for Caribbean specialty foods BY DR RAINER ENGELS

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The general food retail market in Germany When seeking to enter the German market, should seek to collaborate with such traders has two severe disadvantages for Caribbean potential exporters should note that buyers in order to successfully enter the market. exporters: the quantities needed are far beyond generally expect high quality products at low Such market research is critical in order the capacities of Caribbean companies and prices. However, Caribbean exporters face to determine which product segment of the prices are far below levels which would several challenges, sharing many features of the market you wish to supply and hence suffice. Therefore the only opportunities in other small states’ size-related macroeconomic which type of specialized traders may prove the German food market are niche markets. vulnerabilities, such as lack of economies of to be the most suitable business partners for The three fastest growing niche markets are scale, capacity constraints, export diversification exporting into Germany or the EU. products from organic agriculture, fair trade and exposure to natural disasters. labelled products and vegetarian food. Caribbean countries’ smallness constrains Organic Market Trends The agro-processing sector has played the achievement of economies of scale and Globally 37 million hectares (ha) of the a critical role in the diversification of economic specialization. States also face production surface area are allocated towards the Caribbean’s agriculture sector, with rising losses caused by natural disasters from organic food. In 2010, the European market the process of making jams, jellies, fruit 0.9% of annual GDP in the 1980s and 1990s for organic food was valued at €20 billion nectars and other beverages well established to 1.3 % of GDP in the 2000s. Overall, the with major markets such as France and Italy within the region. There is an estimated region has demonstrated declining export valuedt a €3.4 and 1.6 billion respectively number of over 300 agro-processors in the competitiveness over the years (IMF, 2013). during 2012. For Germany alone during CARIFORUM region who are mainly located In light of the above, competition based the 2011 to 2012 period, the value of this in Trinidad and Tobago, the Dominican upon price would be difficult for Caribbean sector increased from €6.64 billion to 7 Republic, Guyana, Jamaica and Suriname firms particularly wanting to enter the low- billion with the share of organic farms in and to a lesser extent in Barbados, Belize priced German food market. Therefore Germany during 2012 accounting for 8 % of and Saint Lucia. it is important to have a unique product total farms and 6.3% of production surface. which may justify higher pricing, with a Both the capacity as well as the opportunity special story that could be sold along with Demand for organic food within European may be available to build upon the existing the product as part of its marketing and markets may be exhibited by the per capita and growing trade relationships between the branding appeal e.g. “Organic Caribbean.’’ expenditure trends for such products. For European Union and CARIFORUM states. example during 2011 (as seen below) up to 177 This may be explored by further export All three identified export categories of euro per capita was spent that year. The quite activity of CARIFORUM agriculture and organic, vegetarian and fair trade have low value for Germany is due to low food prices agro-processing products particularly into specialized traders who supply local shops even for organic food, a market characteristic the German market. and retailers. Caribbean exporters who are which is important to note for prospective interested in supplying the German market exporters.

Table 1: 2011 Expenditure on Organic Food for Select European Markets

Country 2011 Value (EUR per capita)

Switzerland 177 Denmark 162 Austria 127 Luxembourg 134 Liechtenstein 100 Sweden 94 Germany 81

www.carib-export.com 35 TRADE & EXPORT HOT SPOTS

German Organic Market Relevant EU Importing As such it is important to note that most Opportunities Requirements/Regulations producers opt to be certified beyond the Total German organic food imports ranged The EC Regulation (EC) No. 1235/2008 (which minimum legal standards of the EURO-Bio between 5% and 20% of total turnover, was amended in 2012 by EC Regulation (EC) No. logo for organic products. Consequently, depending on the product group. In 2012, 508/2012) identifies the list of control bodies only between 40% and 45% share of organic Germany’s production surface area for the and authorities considered competent to carry products are certified under the minimum organic food sector; of 1.043 million ha or out controls and issue certificates for “third legal requirements of the EURO-Bio labelling 2.577 million acres (ac), was observed to be country’’ exporters such as from the Caribbean system. Nevertheless it may be quite feasible, as growing slower than organic food turnover, for the purpose of equivalence. As it relates to well as cost effective for Caribbean companies demonstrating a growing trend of import organic products, all control bodies recognized seeking to enter this market to first pursue activity to satisfy local demand. During the by the EU Commission to conduct such product certification under the minimum standards 2009 to 2012 timeline, the percentage share certification, may be found listed within Annex of the EURO-Bio labelling system. of organic food in total food expenditure IV of the EC Regulation (EC) No. 1235/2008 by German final consumers amounted to which contains the detailed rules relating to 6194.4 billion euro. This value represented the arrangements for the imports into the EU. Vegetarian Products an average of around 3.6% of total food Further details on this regulation as well as Graphically depicted below is the growth in expenditure increasing steadily each year by contact information of certifying bodies may be the turnover of vegetarian semi-prepared food approximately 0.2%. Aside from bananas, found listed under Annex IV p.3-45 . According within the German retail market. While the organic products from Latin America into to the rules a “Certificate of Inspection” would be category of vegetarian products is difficult to Europe included items such as sunflower required for every shipment to the EU. define (e.g. egg and milk products are accepted kernels, soy beans, flax seeds, onions, apples by some of the vegetarian consumers, in some (20% of apple imports are from Latin The EURO-Bio logo represents the very cases even fish), the diagram below shows that America). These products are certified by minimum level of EU standards that are this segment is characterized by steady growth recognized control bodies according to the acceptable for imported organic products. of products which replace meat products such European regulations. This label provides confidence that the goods as sausages or burgers. produced are done so entirely in line with the EU organic farming regulations and according at least to a minimum level of EU standards .

Table 2: Total turnover of vegetarian semi-finished food in the German retail market (EUR, thousands)

57.958 60 43.456 50 36.672 40 28.742 +34% 22.016 30 +18% 20 +27% 10 +30%

0 2008 2009 2010 2011 2012

Total Turnover of vegetarian semi-finished food in retail (EUR, thousands)

Source: IRI Information Resources

36 www.carib-export.com TRADE & EXPORT HOT SPOTS

Caribbean exporters interested in tapping their goods while only having to satisfy develop market opportunities. They do this into supplying this market need only to German/EU SPS measures for vegetarian through locally- based liaison officers which satisfy sanitary and phyto-sanitary (SPS) fresh and processed foods. provide training, guidance on certification and measures for this type of product. The sector facilitate relationships with buyers. is not a protected one in Germany; therefore Caribbean exporters may sell their products Fair Trade Liaison officers additionally provide at the higher price point associated with Fair trade is an alternative approach to advisory services to farmers and workers, vegetarian labelled goods such as ready-made conventional trade based on a partnership as well as training and information to help (pre-cooked) convenience meals without between producers and traders, businesses them comply with the fair trade standards, animal by-products. An attractive approach and consumers and complying with some strengthen business capacities, and deepen to entering this market would be to deliver minimum social standards. The Fairtrade fair trade impact. There is a growing trend of specifically to companies which currently Labelling Organisation coordinates fair trade EU imported products being labelled under supply vegetarian buyers. Interested labelling at an international level from their both fair trade and organic food regulations, as exporters should research the current office in Bonn, Germany. They set international observed below. This reflects the more recent trademarks associated with these types of fair trade standards, organize support for understanding of sustainability as linking social, products and find a suitable business EU producers around the world, develop a global ecologic, economic and cultural elements. The partner for market entry. The advantage of fair trade strategy and promote trade justice largest seller of fair trade products in Germany seeking to enter this market is that exporters internationally. The organization also helps is GEPA, a fair trade non-profit organisation, may benefit from a higher price point for producers to gain fair trade certification and which holds 19 % market share. Source: IRI Information Resources

www.carib-export.com 37 TRADE & EXPORT HOT SPOTS

Table 3: 2012 Total Fair Trade Products Turnover and Percentage Share of Organic Products

% Share of Products also Product Group Turnover Categorized as Organic Bananas 21,139 tons 88 Coffee 9,322 tons 78 Sweets 937 tons 47 Honey 143 tons 10 Cocoa 304 tons 72 Chocolate 796 tons 52 Sugar 2,236 tons 11 Ice cream 3,444 tons 0 Tea 200 tons 77 Rice 799 tons 77 Wine 613,000 l tons 5 Flowers 257 million pieces — cotton 2,563,000 pieces 39 Footballs 40,000 pieces —

In 2012 total fair trade products turnover in Germany was 533 Million EUR (World 5 Billion EUR)

Becoming Export Ready for information about the programme The German organic, vegetarian and fair Europe please contact the Caribbean Export trade food markets present varying export Several opportunities have been identified for Development Agency. opportunities for export-oriented Caribbean entry into the German market for organic, firms. In order to leverage these growing vegetarian and fair trade products. Based upon 2. The Services of the Europe-Africa- trends by EU and German buyers, Caribbean this, the next step for Caribbean producers and Caribbean-Pacific Liaison Committee products must first meet the expectations exporters would be to determine how to get their Pesticide Initiative Programme (COLE and legal standards which regulate the EU products ready to enter the EU market. ACP PIP). The organization has developed market. Crucial services are available to several Crop Protocol and Good Practice assist Caribbean companies in meeting these Within the Caribbean region several business and Guides which are compliant with export regulations. Once this is achieved, the export development services are available, such as: EU regulations including pesticide Caribbean firms only need to market and maximum residue limits (MRLs). Such brand a product which can uniquely appeal 1. The Productivity Network (ProNET) regulation guides have been developed to the German consumer. A business and export development for products such as avocado, mango, programme available within the dasheen, coconut, cassava, and potatoes CARIFORUM region. For further among others.

Dr Rainer Engels is the Executive Project Manager at the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)EPA Implementation support Project. He is a specialist in quality management, technical barriers to trade, innovation and agricultural trade politics in the public sector. Dr Engels has undertaken 35 short term missions which bestowed him with a wide range of experiences working in various regions of Africa, Asia, the Near East and southern Europe.

38 www.carib-export.com Red Red Tape to Carpet COMMUNICATING THE PROCESS OF CHANGE TO ATTRACT GLOBAL BUSINESS

There’s a fresh wind blowing through the To date, the agencies that have initiated activity Industry, Investment and Communications Ministry of Trade, Industry, Investment and in support of this move include: in a forum that is aimed at confirming and Communications. supporting the team approach to action planning, • Trade Licence Unit; expediting and facilitating collaboration. New Government agencies have been formed • Animal Production and Health Division; to lead initiatives that will attract foreign direct • Plant Quarantine Services; “Red tape to red carpet” has evolved into a investment. All are revitalizing the approach • Chemistry, Food and Drugs Division; comprehensive multi-media programme to business and seeking partnerships between • exporTT Ltd—the export company of aimed at communicating the changes taking private and public sector; between global and Trinidad and Tobago; place across Government agencies in support local producers. • Trinidad and Tobago Chamber of of a business-like attitude. It includes the use Industry and Commerce; of traditional media (press, radio, television, Initiatives like this publication, the re-focusing • Ministry of Legal Affairs; billboards); and explores new social media such of the primary investment promotion agency • Work Permit Secretariat at the Ministry as Facebook and youTube. The corporate press – invest TT Ltd - and the aggressive outreach of of National Security. advertisement has been placed in key local and new companies like the International Financial regional business magazines. InvesTT Limited’s Centre and CreativeTT are aimed at evoking The vision is to create an expectation of One Stop Shop and Facilitation Department are positive responses from Trinidad and Tobago, and premium service on the part of the citizens the key deliverable for the promotion of the red from the world. They say, we are streamlining our of Trinidad and Tobago; and exceed the real carpet treatment to the investor. approaches, we are eager to do business. expectations of the businessman or investor, local or international. Some significant specific outcomes are efficiencies We are, you might say, on red alert. Red, now, is and reduction in the time elapsed between the colour of vibrancy, movement. application and registration or The vision is to create an expectation of premium certification results. For example, Across many Government service on the part of the citizens of Trinidad and time taken for procurement of ministries, the move is on. It was Tobago; and exceed the real expectations of the a construction permit should recently given an identity by the businessman or investor, local or international. be reduced. Some processes Minister himself. Senator the Hon. which should be achieved in Vasant Bharath holds portfolios of shorter time frames include: Trade, Industry and Investment. He believes Within the Government agencies, employees the goods declaration service (via Customs and that to effect change, one must at times be are motivated to provide service to the private Excise); registering a property; and enforcement prepared to move in leaps and bounds. To sector, in the spirit of collaboration. Leading of contracts, or dealing with bankruptcy and assure customers, local and international, that the reform process is Randall Karim - Director, insolvency. the country is open for business, indeed serious Policy and Strategy of the Ministry of Trade, about efficiency and good governance even as Industry, Investment and Communications. He is A couple counties in California— Silicon Valley it sweeps away unnecessary bureaucracy, he responsible for multiple stakeholder engagements and Orange County –have “red tape to red declared the move “from red tape to red carpet.” all aimed at brainstorming solutions for reducing carpet’’ initiatives. These have evolved over time bureaucracy and other issues. Once solutions are to include measurable objectives, incentives and The “red tape to red carpet” campaign is based presented, the process drives early adoption of annual awards which celebrate the efforts of on the trend towards enhanced collaboration plans and programmes which may include better Government and other agencies in continuous among Government ministries and agencies. It communications, computerization and efficiency improvement, to do better faster. In time, “red reflects the efforts to do better faster even as it targets among others. tape to red carpet” will be a significant element drives improvements in service delivery across all of the Trinidad and Tobago brand. interactions in Trinidad and Tobago. Hopefully, Karim leads an action-oriented group comprising a virtuous cycle of continuous improvement is representatives of all the active subscriber (Information provided by Yolande Agard- being created. It is new branding that indicates agencies (listed above) with clearly defined targets Simmons - Manager, Communications energy, urgency and efficiency in the country’s and delivery dates. He reports regularly to the and Events, Ministry of Trade, Industry, business interactions. executive management of the Ministry of Trade, Investment and Communications)

www.carib-export.com 39 TRADE & EXPORT HOT SPOTS COMPANYcompany to TOlook out for:LOOK OUT FOR: 10 Saints Brewery Company Limited

40 www.carib-export.com COMPANY TRADE & EXPORT HOT SPOTS TO LOOK OUT FOR:

Company Name Product Summary: tropical spices and citrus notes. A smooth rum 10 SAINTS Brewery Co Ltd 10 SAINTS, named after the 10 Saint finish completes the taste sensation. parishes of Barbados is the first specialist Website independent brewing company in the Export Markets www.10saints.com Caribbean. Combining the rum heritage The United Kingdom, Ireland, Italy, Germany, of Barbados with the skills of our master Poland, Russia and several Caribbean markets. Chief Executive Officer brewer, 10 SAINTS has produced a range of Shipments to the United States of America, Glyn Partridge small batch production beers uniquely aged Canada and Brazil should begin this year. in rum casks. Our “original” export brew is Years in Existence a refreshing lager style beer, oak aged for 90 Major Exporting Achievements 2 years days resulting in a rounded palate. It is golden We are the only specialist craft premium beer amber in appearance with the aroma of lightly produced in the Caribbean and as such have Location roasted malt and “oakiness” delivering a full accessed top outlets in major European cities Speightstown, Barbados yet refreshing flavour of vanilla balanced with such as Mahiki’s night club, London which

www.carib-export.com 41 TRADE & EXPORT HOT SPOTS

is frequented regularly by royal princes and Market Entry Strategies Support Received by Caribbean London’s A list celebrities. Our quality and Identify the right partner and ensure Export unique process is reflected in our premium expectations are understood and agreed-that’s We participated in ANUGA and received pricing; 50% and above all Caribbean beers the critical factor. orders from Italy, Germany, and France. We sold domestically and exported. In addition, also have a pending listing in a supermarket we have won several beer awards and other Greatest Exporting Lessons Learnt chain whom we met at the show. Additionally, accolades. One great achievement was having In Barbados it’s really the fact that Barbados we have ongoing discussions with several Chelsea owner and multi billionaire Roman is NOT a part of the CARICOM duty free prospects in Poland, Russia and Spain. Abramovich and his guests drink 10 SAINTS agreement. We are subject to punitive on his yacht when they visited Barbados import duties (70% plus) when attempting General recommendation on and the further request that 10 SAINTS be to export to the lesser developed economies support needed by exporters: stocked in Chelsea football club. which really kills that prospect. This Fight for a genuine duty-free area within combined with a small domestic market CARICOM, remove non-tariff barriers and makes Barbados a very tough place to bureaucracy and improve shipping efficiencies. establish an export operation.

42 www.carib-export.com our competitive advantage OUR COMPETITIVE ADVANTAGE agro-processing: what’s our unique selling point?

BY BEVERLEY ALLEYNE

Carambola, Barbadian aloe, guava, mango, lemongrass—the region is endowed with natural treasures and has the potential to penetrate international food and nutraceutical markets.

44 www.carib-export.com OUR COMPETITIVE ADVANTAGE

Kiran Akal summed up the essence of the quality and sanitary programmes; and Caribbean’s agro-processing industry like this: strategic marketing. “We have these super-desirable products in the West Indies—Trinitario cocoa, tropical Testimony to the international potential lemon grass, orange peel, anise, hibiscus, for the distinctive Caribbean flavours is the nutmeg, sorrel. These things are available in recent success of at least three companies other countries, but we have the best. It’s a from the region at the ANUGA Fair held in question of terroir.” Germany in October 2013. ANUGA is the world’s leading food fair for retail trade, food Akal is Chief Executive Officer of Trinidad service and catering. Banana Ketchup from and Tobago’s SMAKS Luxury Group, which Baron Foods Ltd, Tiger Malt from Beverages markets a tea collection. Caribbean Inc and Marie Sharp’s Fruit Flavours from Belize were all winners of the The mélange of races and cultures that coveted Taste13 Award. constitutes the Caribbean, born out of a history of colonization, has resulted in a more To the question of terroir, much of the colourful existence than other territories may Caribbean’s food crops have their genesis be able to claim. The very term “Caribbean” in the colonial history of the region—from is synonymous with “exotic,” “flavourful,” the corridors of Africa and Europe to the “hand-crafted,” and “vivacious.’’ The Pacific. Ackee, for instance, was imported uniqueness of the Caribbean brand is what we into Jamaica from West Africa in the 17th have to offer the world and we should leverage century. However, while it can also be this to include our agro-processed goods. found in Haiti, Cuba, and Florida, ackee has ostensibly become Jamaican, so that While we have already made some inroads in ackee and saltfish is the country’s national exporting our agro-processed food products dish. The historically highly demanded Aloe internationally through such brands as barbadensis (Barbados aloe) was inserted into GraceKennedy, Walkers Wood, Baron the international pharmacopeia because of its Foods, and Banks Beer, the Caribbean still particular quality. sits on untapped agronomic treasures. The region is endowed richly with fruits and So, what are some of the untapped Caribbean vegetables, which provide the raw material treasures? Aside from the traditional sugar, for an exciting array of exportable products. banana, rice, and nutmeg crops, the region The degree to which we are able to own and produces exotic fruits, vegetables, roots and combine the flavours and characteristics of spices such as gooseberries, several varieties these endowments, with apposite packaging of apples, mangoes, plums and hot or flavour and presentation, will be the extent to which peppers, carambola, soursop, Barbados we are successful in international markets. cherry, breadfruit, sweet potatoes, and pimento, to mention a few. Much of these Significant and strategic investments will be remain unfamiliar to the rest of the world, necessary in the areas of product development but have not been investigated to the degree research (linked closely with market the peanut was by George Washington Carver. intelligence); equipment and technology; His research led to a cornucopia of items, such

www.carib-export.com 45 OUR COMPETITIVE ADVANTAGE

as peanut butter, oils, hair and skin products, scientifically demonstrated how these flours been internationalized. The correct packaging as well as the proliferation of nut-flavoured could replace or blend with traditional wheat and presentation would be needed to assure baked goods, snacks and drinks. flours to create new lines of healthy cuisine adequate shelf life and transportability of from the Caribbean in the baked goods food such items as guava cheese mixed with new A new health-conscious consumer is looking category. This product category is one of the flavours as mango, jamoon, carambola or for gourmet cuisine without having to sacrifice largest categories in both the United States and soursop, to imagine a few. flavour for health. Further, the increase in the United Kingdom markets. food allergies and gluten intolerance has Traditional extracts such as vanilla and given rise to the need for healthy alternatives. And what of jams and jellies? Feedback from almond could be extended to mango, for Research has deemed many familiar items, the UK market indicates an untapped niche instance, or even nutmeg or guava. These such as wheat-based products, bleached for banana jam from the region. As a native of alternatives widen the scope for new and flours and pastas, as unhealthy because of Britain, I grew up eating banana sandwiches. creative products to emerge. Note that guava over-processing, hydrogenation, genetic They were to the average British child what (guayaba) is a favourite of the Latin-American modification, or high-glycaemic factors. the peanut butter and jelly sandwich is to the community for desserts and treats. American child. Gooseberry and golden-apple The Caribbean has the potential to bring to jams are delightful too, by the way. Beyond food, Caribbean agro-processed international markets healthy flour alternatives products could include dyes, nutraceuticals made from sweet potato, breadfruit, and yam, Traditional Caribbean confectionery can also and supplements. In Jamaica, Bio- for example, once it can be practically and be exported to the degree that chocolate has Tech R&D Institute Ltd has already

46 www.carib-export.com OUR COMPETITIVE ADVANTAGE

adventurously invested in nutraceuticals and SMAKS, for instance, has made a concerted that are, or will be, available in the markets. pharmaceuticals derived from the indigenous effort in this regard by naming some of its These shops would be distinct from ordinary medicinal plants of Jamaica. tea blends “Barbados Silver,” “Antillean supermarkets and retail outlets because Green,” “Trinidad Breakfast,” “Tobago they would be responsible for education The possibilities can be as creative as our Afternoon,” and providing very high-quality and promotion through product launches, imaginations. What is necessary is a belief in packaging that speaks to the hand-crafted sampling sessions, demonstrations, and other the Caribbean’s value in the marketplace and nature of their exotic teas. Grace Kennedy fun but effective tools. a can-do attitude, backed by the necessary International appeals to authenticity in its capital investment into research, technology catch phrase, “Genuine Caribbean taste They would develop and build networking and marketing. This can certainly be gleaned enjoyed worldwide.” relationships with distributors/retailers, to work from those Caribbean exporters who have in tandem with them rather than in competition, successfully positioned themselves on the An additional new marketing approach that so that sales could be channelled through these international scene. At the core, they have could prove invaluable to promoting the mechanisms. They would have strong Public all embraced the “Caribbeanness” of their region’s products is a Caribbean food channel Relations and media campaigns. They would all products. Their marketing strategies and on the international networks, complemented have uniformity and consistency in imagery or tools have infused the stories of Caribbean by the establishment of Caribbean shops in branding so that a Caribbean shop could easily be history and culture, and captured those strategic markets, established solely for the identified. This is an idea for further rumination, evocative elements that resonate with the purpose of diffusing Caribbean cuisine but could very well be the foundation that international markets. and promoting the agro-processed products supports the building of a Caribbean brand.

Ms. Beverley Alleyne is a Senior Business Development Officer of the Barbados Investment and Development Corporation. She has over twelve years’ experience in the business of export development and promotion, managing a cross-section of large and SME exporters.

www.carib-export.com 47 OUR COMPETITIVE ADVANTAGE COMPANYcompany to TOlook out for:LOOK OUT FOR: marie sharp’s fine foods limited

Company Name Location sauces uses the potent red habanero, while both Marie Sharp’s Fine Foods Limited Stann Creek Valley, Belize cactus and citrus-based hot sauce use the yellow and green habanero. Marie Sharp’s products are Website Product Summary HACCP certified, FDA approved, and certified www.mariesharps-bz.com Marie Sharp’s is a proud manufacturer of all for health food stores in the USA. Marie Sharp’s natural Habanero Pepper Sauces, Fruit Jams and lives up to its slogan “Proud Products of Belize.” Chief Executive Officer Jellies, Habanero Pepper Jellies, and snacks in Mrs. Marie Sharp Belize. Marie Sharp’s Habanero Pepper Sauces Export Markets are carrot-based, citrus fruit based, and also Japan, USA, Taiwan, Canada, China, Germany, Years in Existence cactus-based, each one with its own unique United Kingdom, South Korea, Mexico, 33 years taste. Marie Sharp’s carrot-based habanero France, Guatemala, El Salvador, and Honduras.

48 www.carib-export.com COMPANY OUR COMPETITIVE ADVANTAGE TO LOOK Major Exporting Achievements Support Received by Caribbean team of Caribbean Export. Marie Sharp’s has ANUGA Taste13 Award 2013, Fiery Food Export also participated in various other workshops Show award in the USA in 2001, Award for Caribbean Export has been very instrumental supported by Caribbean Export. One of the OUT FOR: Food and Beverage at ANUGA 1997. in many initiatives that have led Marie Sharp’s workshops which focused on “Intellectual to export to new markets and expand existing Property Rights” was very crucial to equipping Market Entry Strategies markets. Through Caribbean Export’s export the company with information on exporting Most of our market entry has occurred after development initiative Marie Sharp’s was from the Caribbean region to the globe. The attending food shows. After persons taste our chosen to be part of the “product placement” Caribbean Export workshops provide great products they are astounded by the quality in the Fiesta market chain in Texas. This began benefits for exporting companies and soon-to- and flavour of Marie Sharp’s. Also tourism in with a few case samples and now Marie Sharp’s be exporters to be better prepared for what lies Belize has also directly impacted our exports is selling by pallets every three months to Fiesta. ahead when Caribbean based products enter around the world. Many tourists take back In addition, there has been an increase of Marie new markets around the world. our products as gifts and they then become Sharp’s sales into US markets due to attendance known in those particular countries. at the New York Fancy Food Show. At the Fancy Key Support Needed by Exporters: Food Show Marie Sharp’s was able to display • Access to lending institutions for low Greatest Exporting Lessons Learnt products, provide tasters, and do product interest financing. • Practise what you preach; don’t make a giveaways. Since that show we have seen a steady • Export Readiness workshops for new promise and then don’t do it. 11-13% growth in US sales since 2011. The same or soon to be exporters with a focus on • Quality, Quality, Quality! applied for ANUGA 2013 Show in Germany, topics such as market entry, marketing, • Have a business mind-set or approach to where Marie Sharp’s won the prestigious Taste pricing, negotiations, HACCP, ISO all business related activities. 13 award for excellence and quality. The radio certification, etc. • Be different and better than the rest. and TV coverage given was exceptional for both • Online/internet presence. • Success is not overnight; it can take years Marie Sharp’s and the Caribbean region. At • Tradeshows/trade missions. to establish a brand and products. ANUGA, Marie Sharp’s participated with other • Market placements of high potential • Intellectual property rights protection Caribbean companies as the Caribbean Pavilion, export ready products in major ethnic/ is a must! under the vision and direction of the dedicated diaspora supermarkets.

www.carib-export.com 49 OUR COMPETITIVE ADVANTAGE the caribbean services sector and the opportunities under the CARIFORUM-EU EPA BY LUCILLA LEWIS & FLORENCE LOUIS-EDUOARD

50 www.carib-export.com OUR COMPETITIVE ADVANTAGE

The services sector accounted for almost 71% suppliers that can enter the EU markets. In addition, the Protocol on Cultural of global GDP in 2010. Trade in services has Cooperation provides for greater cooperation increased from US $1.5b in 2000 to US $3.9b For both the CSS and the IPs there are conditions on all cultural fronts. It facilitates those who in 2008 and US $4.3b in 2012, representing a of entry which must be met, e.g. there is the wish to enter the EU for other cultural weighted average annual increase of 15.7%. While provision for an economic needs test by the activities, including collaborating with the services sector in the CARIFORUM region intended host country in the EU before entry is creative persons. It provides a framework for continues to grow in line with these global trends, granted to IPs and CSSs from the CARIFORUM temporary movement and training of artists trade in services from the region comprises a very region. Further details on entry requirements are and other cultural practitioners in performing small portion of total international trade. laid out, generally in Articles 83 to 85, in sector and visual arts, and contains special provisions specific Articles of the EPA and in Annex IV. on the audio-visual sector. The CARIFORUM - European Union Economic Partnership Agreement (EPA), which is based With respect to entertainment services, artists Historically, and as a result of EU-wide on reciprocity and transparency, provides an and cultural practitioners are granted access policies, market access commitments have enhanced framework for trade and economic to the European markets . The cultural sector not been allowed in the audio-visual sector in development between the EU and the and entertainment services in particular are any preceding trade agreement between the CARIFORUM region. The signing of the EPA in addressed through two instruments in the EPA. Caribbean and Europe. However, the EPA 2008 marked the inclusion, for the first time, of These are as follows: Protocol on Cultural Cooperation provides commitments of access for service providers and possibilities for collaboration with European investors as well as provisions for development of (i) Market access commitments by 26 producers in order to facilitate access into the e-commerce based on international best practice. European states for entertainment EU for CARIFORUM audio-visual material services from CARIFORUM states through special mechanisms. Within the EPA, CARIFORUM States opened that are governed by the rules of the 65 to 75% of their services markets focusing on Services and Investment chapter and Article 5 requires parties to the Protocol sectors with the greatest impact on development the general provisions of the EPA. to encourage negotiation of new, and and where investment and transfer of (ii) A Special Protocol on Cultural implementation of existing co-production technology is appropriate, for example, business Cooperation. agreements between one or several Member services, management consultancy, maritime States of the EU and one or several signatory transport, entertainment and tourism. With In the case of the EPA’s market access provisions, CARIFORUM States, including through respect to the European Union, 90 % of its Caribbean firms are allowed to invest in granting of preferential treatment and support services markets were opened up, allowing for entertainment activities in Europe. For the through organization of festivals, seminars more favourable opportunities and market first time, the EU and its States granted legally and similar initiatives. Article 6 builds on the access for CARIFORUM export of services to binding provisions on market access for the provisions in Article 5 by requiring the parties the European Union. supply of entertainment services through the to the Protocol to encourage the promotion of temporary entry of natural persons for up to their respective territories as locations for the Concomitantly, the EU has granted market access six months. This is categorized as Contractual purpose of shooting cinematographic films and in 29 sectors to Contractual Service Suppliers Service Suppliers (CSS) under the EPA and covers television programmes, including cooperation to (CSS) from the Caribbean. Services providers the following activities: allow temporary importation from the territory in these 29 sub-sectors are therefore allowed to of one party to the territory of the other party, stay in the EU for up to six months in a calendar CPC 9619 Entertainment the necessary technical material and equipment. year to provide their services. The 29 sub- services (other than audio-visual) sectors include legal advisory services in respect 96191 Theatrical producer, singer group, In particular, co-produced audio-visual of international public law and foreign law (i.e. band and orchestra entertainment products and services involving European and non-EU law); accounting and bookkeeping services. CARIFORUM creative teams will qualify as services, architectural services, urban planning 96192 Services provided by authors, domestic productions and meet the audio- and landscape architecture services, engineering composers, sculptors, entertainers visual content rules in all EU states and in the services, computer and related services, and other individual artists. CARIFORUM region. Through the Protocol, advertising services, management consulting 96193 Ancillary theatrical services not artists and other cultural practitioners (who services, chef de cuisine services, fashion model elsewhere classified. are not involved in commercial activities in services, education services, health services and 96194 Circus, amusement park and the EU) will be able to enter the EU space to entertainment services. similar attraction services. collaborate on specific projects and training 96195 Ballroom, discotheque and dance exchanges. These persons will be allowed to The EU has also liberalized 11 sectors for instructor services. stay in the EU for periods up to 90 days in temporary entry by Independent Professionals 96199 Other entertainment services not any 12-month period. This is of significant (IPs) or self-employed persons without quotas elsewhere classified. importance to the CARIFORUM private sector or economic ceilings on the number of service in the context of the modern knowledge-based www.carib-export.com 51 OUR COMPETITIVE ADVANTAGE

economy being pursued by the region. EU residents subjects including Caribbean both health tourism and exports of computer cooking, Caribbean culture and so on, both in and information services from the region. Services providers from CARIFORUM States the CARIFORUM region and in the EU. An Given the region’s emerging reputation as have already shown evidence of great dynamism Institute for Learning of Caribbean Culture, a wellness destination and the increasing and potential in these liberalized sectors. for example, to include dialects, music, flora cost of health care in Europe and globally, and fauna, could be established either in the the potential for growth in exports of health Selected Sectoral Indications EU or in a CARIFORUM State, as a joint services by region is tremendous. Computer and Information venture investment with CARIFORUM and Services EU interests. Location of such educational and health There is already evidence of intra-regional facilities would also stimulate and nurture activity with firms in Barbados and Jamaica In addition, access granted under the EPA by market demand in the EU for cultural services providing computer software solutions several EU Member States at different levels from the CARIFORUM region. and related services to businesses in other of education from primary to university, CARIFORUM States. Off-shore data though with varying levels of exceptions, Cultural Services processing companies and call centres are should allow instructors from the region to The Cultural Industries Sector in also well established in the region and create seize opportunities to teach at institutions in CARIFORUM region includes song writing, sources of employment for many citizens. All Europe or in the region through movement live performance and recording of music, EU Member States have granted market access of natural persons (mode 4), and through the local production of audiovisual products and for computer and information services. internet platform (mode 1). location filming, arts and crafts, multimedia and literature. The contribution of exports Education Services Health Services of cultural services to value added in the As a destination for foreign direct investment, The Health/Medical Tourism Services sector region varies from being very significant the region has seen increasing evidence offers several opportunities in relation to in some including Jamaica and Trinidad of higher education facilities from the development of businesses which offer natural and Tobago to not so significant based on United States being established as Foreign remedies and spa facilities in the health and available statistics in some of the other Affiliates (FAs) in the region. In such cases, wellness tourism niche in the region. There States. All States have identified cultural the education services provided to the non- has been a trend towards location of health industries as having tremendous export resident students and the living expenses of rehabilitation and wellness centres as Foreign growth potential through FTAs being the students are exports of education tourism Affiliates from developed to developing entered into including the EPA. services for the region. The EPA provisions countries, including to some CARIFORUM can result in similar trends in attracting States. In such cases the expenditure by non- Every CARIFORUM State has an annual Foreign Affiliates from EU Member States. resident “patients” is classified as receipts from Carnival, and several other annual festivals The EPA offers opportunities in the provision tourism for the host country and of course has which all embrace and provide marketing of training, as well as domiciles for offshore a multiplier effect as well. opportunities for most of the cultural services education/training institutes and the listed above, and which are more and more, provision of general administrative services In addition to evidence of direct investments being showcased as tourism events. Under the to support offshore education institutes. in offshore rehabilitation clinics in several EPA, there is the opportunity for the regional For example, businesses/investors in the CARIFORUM States, there is also increasing private sector to partner with the national region can pursue opportunities through evidence of use of technology at those facilities festival promotion agencies in CARIFORUM establishing commercial presence (mode 3) or by medical practitioners located in different States and with counterparts in EU markets otherwise partnering with investors in Europe parts of the world to undertake real time joint towards organizing one major annual cultural to establish training institutions to teach patient management. This offers promise for event reciprocally. Also, to make promotion

52 www.carib-export.com OUR COMPETITIVE ADVANTAGE

of these festivals more cost effective, service and operationalise a regional scheme for alleviation, may need to be revisited. Private providers in the region could develop more certification and conformity assessment; sector financial institutions would also be fringe activities around the festivals through • Build awareness, strengthen the well advised, within the framework of their joint venture investments with investors from information and communication mandatory financial prudence guidelines, the EU; a forum for forging such partnerships infrastructure and develop a coordinated to allocate a limited share of their, often could be included as an agenda item at the knowledge management system; reported, excess liquidity to establishing annual event to be organised or developed. • Strengthen institutions such as the creative financial instruments for financing CARICOM Regional Organization enhancement of export competitiveness of In addition to festivals several of the region’s for Standards and Quality (CROSQ) businesses in the region. When co-production performing groups and artists especially in the Secretariat, The Dominican Institute treaties are completed between individual field of music are already penetrating markets for Quality (INDOCAL) and the EU Member States and Caribbean States in the US, Africa and the EU. National Standards Body (NSBs) or region, it will also become possible for from an organizational level, as well Caribbean audiovisual producers to access Importantly such services/activities developed as to develop a regional framework for funding for creative projects. CARIFORUM and cultural activities exported through CSS market surveillance. States, in the spirit of the provisions of the or IPs must continue to meet international EPA must support private sector initiatives standards. At the regional level also, the trade support to secure co-production treaties. agencies need to continue to invest resources Sports tourism in twinning businesses/professionals with There is also an urgent need to provide Export earnings from sporting events have been relevant institutions/agencies in the EU and in market research information to performing evident in the region through movement of providing the necessary market intelligence. artists in the region in order to link them natural persons, e.g. when Usain Bolt of Jamaica The Caribbean Spa and Wellness Association with producers in the EU. The region also returned home with earnings for outstanding (C-SWA) should endeavour to provide needs to better document and package all performances at the 2012 Summer Olympics technical assistance to its national chapters aspects of its cultural heritage in a manner in the UK. More resources need to be allocated e.g. to the recently formed Dominica Spa that allows development of a certified to developing and maintaining of sporting Health and Wellness Association (D-SHWA) teaching syllabus in these areas. facilities in all CARIFORUM States. In most and embark on a campaign to encourage CARIFORUM States this is the responsibility establishment of similar chapters in all other The Protocol on Cultural Cooperation of resource strapped public agencies. The EPA CARIFORUM States. (discussed above) stipulates that artists and makes provisions under which investors in the cultural practitioners have to be registered EU may be induced into partnerships with Joint regional promotion campaigns and/or certified across the region. This local investors in developing much needed targeting EU markets need to be organized condition should be addressed through the sporting facilities. on a more regular basis, possibly twice establishment of a regional registry of artists annually, with alternating sector focus and other CSS and IPs who succeed in accessing Conclusion and with different segments of the private EU markets with their services, and also those The highlighted market opportunities sector taking a lead role. The issue of access who attempted and failed and the reasons can exist only if international standards to suitable capital for addressing business why they failed. Furthermore, transparency are met. The private sector is urged to get development challenges must be addressed in application of entry requirements across involved in making the necessary business with increased urgency as the region needs borders in all States that are party to the EPA investments to continue to meet and to continue to enhance its competitiveness must be ensured by the national authorities to maintain international best practice and as a destination for foreign investors and to facilitate hassle-free travel by CSSs and IPs to certification standards. Under the technical enhance business viability generally. This provide their services. barriers to trade component of the 10th EDF, will require strong support from national projects being implemented seek to: business support organizations as well as All these efforts will require increased • Strengthen the metrology infrastructure regional agencies such as the Caribbean investments in developing the enabling within the region; Export Development Agency. environment to nurture the existing • Strengthen and harmonise the entrepreneurial spirit in the private sector. standardization infrastructure; Also, the approach and instruments available Considerable funds have been allocated • Operationalize regional schemes to the development banks in the region, to under the 10th EDF for this purpose. The for accreditation, certification and carry out their mandate of contributing region must ensure that the desired results conformity assessment; and develop to economic development and poverty of these resource allocations are met.

Ms Lucilla Lewis possesses several years of experience in undertaking social and economic research particularly on challenges faced by Small Island Developing States (SIDS). She has worked in the areas of trade policy and related capacity building assignments. Ms Lewis holds an MSc in Economics and is a Certified Management Consultant (CMC).

Ms Florence Louis-Edouard is a Senior Trade expert with 10 years’ experience in trade and export development, regional integration, private sector development, projects design and implementation, monitoring and evaluation, capacity building, trade in services and trade negotiations, among others.

www.carib-export.com 53 OUR COMPETITIVE ADVANTAGE on the right track: MVP boosting the

businessBY STEPHANIE BISHOP of sport

Image provided by MVP Track Club

54 www.carib-export.com OUR COMPETITIVE ADVANTAGE on the right track: With the motto “Whatever you do, do winning Olympic medals. well,’’ four men with a vision started a MVP boosting the club in 1999 at Wolmer’s Boys’ School “People didn’t believe that what we were doing in Kingston Jamaica, which would was feasible, and they felt that anything we did eventually bourgeon into one of the was going to spoil that legacy. So the buy-in business of sport Caribbean’s most successful athletic from investors was never there,” James said. ventures. To overcome these hurdles, MVP had to be The starting blocks innovative and strategic in its approach to Paul Francis, Stephen Francis, David Noel recruitment. “We had to target second-tier and Bruce James established the Maximising athletes because the top-tier athletes had also Velocity and Power (MVP) Track and Field Club bought into the view that they needed to get a because they wanted to see Jamaican athletes scholarship to the US to be a world-class athlete.” develop and progress beyond high school. By 2001, MVP was beginning to face financial Bruce James, President of MVP said, “We felt challenges. “Although we were attracting a few that we had quite a bit of success in producing athletes here to join us, we didn’t have a way athletes who would get scholarships to to maintain it,’’ James explained. “They were universities in the United States. However, we training on a dirt track at Wolmer’s, and a lot found that they did not develop as well as we of them were now missing the opportunity thought they should have.’’ He added,“ Our to go to university. So we had to find a way to expectation was that when they left high school sustain what we had.” they would continue on a certain trajectory, but instead they plateaued.’’ It was then that business partner and coach Stephen Francis decided to approach the Prior to the formation of MVP Track and Field University of Technology (U-Tech) with an Club, the business environment for athletics offer they couldn’t refuse. He would offer his in Jamaica was primarily a system that shipped IAAF-certified training skills for free, with the athletes out to overseas universities to train and condition that the university allowed MVP study after high school. athletes to train at the grounds and enroll in classes there. James and company had consistently proven that they were good enough to train athletes As a result, Asafa Powell became one of up to that level, but what was needed was the club’s first recruits in September that a structure to take those athletes to the next year. James said, “I believe that if we did not level—while keeping them in Jamaica. have the opportunity to train at U-Tech, we . would not have been able to attract or recruit athletes like Asafa. So 2001 was a watershed Jumping the Hurdles year for us.” The transformation envisaged did not come without challenges. Jamaica already had a rich sporting history with athletes who had gone Transitioning from Sport to through the process of completing high school Business in Jamaica, receiving scholarships to the US, During the 2000 Sydney Olympics, Jamaican competing in the World Championships and athletes who lived and trained outside of

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Image provided by MVP Track Club

Jamaica earned 100% of the medals the sports beyond recreation to a viable business Competitive Advantage country received. By the 2008 Beijing venture. The club showed Jamaica and the That model has garnered MVP undeniable Games, 80% of the medal winners were region that Jamaican coaches, managers, success in the club’s 14-year history. James living and training in Jamaica. They included and facilities could be the very best in the also cites two reasons for their continued Usain Bolt, Brigitte Foster-Hylton, Shelly- world. This is continually demonstrated in achievements both on and off the track: Ann Fraser-Pryce, Asafa Powell, Sherone the breaking of world and Olympic records their team and infrastructure. “A track and Simpson, Melaine Walker and Shericka and the winning of medals. field club, or any sports club, can only be Williams. as successful as their coaching staff, and “Anyone in the region can do what we did. we have the very best in the world. We “I can’t say that MVP was responsible for Certainly now there is a proliferation of also have a structure that works, meaning Usain Bolt staying in Jamaica, but I dare say clubs as a result of what MVP has done, and that in addition to great coaches and great that because we were able to establish the other Caribbean countries can follow suit.” athletes, we have an infrastructure that club, the possibility of being able to stay in supports them.” Jamaica became an option and was now up James is also of the view that this transformation for serious consideration.” can extend beyond athletics to include other MVP is an all-inclusive track club that seeks sporting disciplines, as long as the right model to handle the everyday affairs of athletes, MVP also created an opportunity to take is in place and managed appropriately. such as accommodation, academics, and

56 www.carib-export.com OUR COMPETITIVE ADVANTAGE

meals for student-athletes, and financial, region. According to the Jamaica Tourist our success to promote the different tourism tax and legal advice for the professional Board, approximately 1.3 million tourists products to the various countries.” athlete. visited Jamaica in 2012. It is a widely held belief that these figures would increase “In other clubs, athletes may have a different exponentially, with the development of a Steps to Success relationship for every aspect they encounter national sports tourism policy that sets the Today, MVP Track and Field Club has outside of athletics, but here at MVP we parameters for enhancing the collaboration approximately 100 students on its training handle everything in one place so that between tourism and sports, which effectively roster, of whom 40 are professional athletes. our athletes can concentrate on training harnesses the Jamaican sport product. In addition to Jamaican athletes, the club also without the added distractions.” has an enrolment of athletes from Barbados, James remarked that the Caribbean is on the Trinidad and Tobago, France, Germany and right track as a “natural tourist destination,” South Africa. On the right track and given the innate and incredible sporting James believes that athletes have made a talent of our region’s athletes, “someone can James offers the following advice to sport significant impact on the country’s brand. find a way to marry our great sporting history entrepreneurs: “The first step is self- “When our athletes run across the finish line with our unique tourism product.” confidence: you have to believe you have the and are successful, they are adding positive ability to do something. Next, dream big: you value to ‘Brand Jamaica’.’’ He added, “I really believe that our don’t just want to train an athlete to make contribution to sports tourism is ensuring Olympic standards. You need to believe your This is also translated into the economic that our [regional] athletes are the very best athletes would break records. Don’t set low viability of sports tourism within that in the world. Then the tourism marketers targets. Finally, teamwork: work with a group country and potentially throughout the and the public relations machines can use of competent people who you can trust.”

Stephanie Bishop is a Communications Advisor at the Caribbean Export Development Agency. She is a development communications specialist with over 10 years professional experience and holds a Masters in International Affairs.

Image provided by MVP Track Club www.carib-export.com 57 OUR COMPETITIVE ADVANTAGE one-on-one with two-time olympic champion shelly-ann fraser-pryce BY STEPHANIE BISHOP

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When you consider the dominance of in 2010 and, most recently, the IAAF Female With my Foundation, we especially want to Jamaican athletes in short sprints during Athlete of the Year. help student athletes because I know how the 21st century, it’s hard to believe that difficult it can be to follow your dreams before 2008 no Jamaican had ever won an Undoubtedly, there is much more to Fraser- while facing challenges. We found that some Olympic 100-metre gold medal. That year, Pryce than what the world sees on the track, so of the best athletes are coming from the however, everything changed when a virtually Caribbean Export sat down for a one-on-one inner city or single- parent homes and that unknown five-foot, 21-year-old named Shelly- with the Caribbean sprint queen. they are struggling to link education with Ann Fraser helped Jamaica sweep the short sports because the resources are not there. sprints, along with country mates Usain What has your professional athletics So I decided to start the Foundation to create Bolt (100 and 200 metres) and Veronica journey been like since joining the lasting change, through education and sports, Campbell-Brown (200 metres). MVP Track and Field Club? in the lives of student-athletes. We also want to extend it beyond athletics to include Six years after becoming the first Caribbean Since joining MVP in 2006, the journey netball, football, tennis, cricket, et cetera. woman to win the Olympic 100- metre sprint, has been very successful. I have been able to Fraser-Pryce has gone on to successfully defend train with some of the world’s best athletes Digicel, Grace Kennedy, Nike and Sagicor have that title during the 2012 London Olympics, such as Asafa Powell, Brigitte Foster-Hylton, been fantastic sponsors and I hope that more of becoming only the third woman in history and Sherone Simpson, and it has given me corporate Jamaica can get involved, because when to win two consecutive 100-metre events at a tremendous amount of respect for these they help these students, they help Jamaica. that level. In 2013, she also became the first athletes, and how hard they work. This has also female sprinter to win gold medals in three given me the drive to perform at my very best. In addition to my Foundation, I have a sprint events in a single World Championship. hair store called Chic Hair. It caters to the Because of her speed and petite frame, she is My coach, Stephen Francis, is also a very woman who wants to change her look, or called the “Pocket Rocket.” wonderful coach. He is very intelligent and adapt to the weather. Something adaptable tenacious when it comes to paying attention yet fashionable; we are also branching out Fraser-Pryce won her first international medal to the details and making sure we get things (in December 2013) to include a full service during the Central American and Caribbean right on the track. Our management team is beauty salon. (CAC) Junior Championships in Barbados also fantastic, as they manage every aspect in 2002. This was just the beginning of an of what we do here at MVP, in addition What are some of the challenges illustrious career in athletics spanning over 13 to working with my agent for local and that young athletes face, female in years, and she has amassed some 16 medals. international meets. particular, on the global stage?

Coached by the International Association Outside of athletics, with which other As females, we face a lot of challenges in of Athletics Federations (IAAF)- certified activities are you currently involved? athletics. We go through so much more Stephen Francis, Fraser-Pryce is a member of than our male counterparts, yet we have to the Maximising Velocity and Power (MVP) Apart from track and field, there is my rise against those challenges, while trying to Track and Field Club, in Kingston Jamaica. passion the Pocket Rocket Foundation. This meet them at their level. The males get more has been a dream that I wanted to fulfill attention than the females in athletics, but In addition to her honours on the track, for a while. I waited until I won that gold we are enduring some of the same training. Fraser-Pryce was also named the first medal (in London) because it came with so United Nations Children’s Fund (UNICEF) much more that was able to help me in this Further, we are competing on the track National Goodwill Ambassador for Jamaica endeavour. amongst ourselves, but we are also competing

www.carib-export.com 59 OUR COMPETITIVE ADVANTAGE

Image provided by Pocket Image provided by Pocket Rocket Foundtion Rocket Foundtion

to be on the same level as the men. We can As an accomplished athlete, what may run for (the office of the) Prime Minister. understand not getting the same amount of recommendations do you have for pay because the men are breaking records developing the sports tourism industry Track and field is just a stepping-stone in the every year, and the female records are so far in the Caribbean? process, but it gives me the platform I need to out there, it’s like we’re chasing a ghost! Yet put the resources in place to get things done and we still aspire to be like them and this is why I think more needs to be done about sports help as much as I can. I especially want to be in a I think we still deserve the recognition. tourism in Jamaica. We need to capitalize on position to help young girls realize their dreams “Brand Jamaica”. Have our athletes endorse and passions, because passion breeds success. What advice would you give for the Jamaican products. When we go abroad, overcoming some of these barriers? we see an abundance of Jamaican shirts and For me, training is my safe ground. It really is merchandise but we are not maximizing on it my passion and I enjoy it. So I want our young It is important to work hard and be dedicated. here in Jamaica especially given our success in people to be able to follow their dreams. Honestly, we are not alone in the challenges we other sports such as cricket and football, not just face today, as the athletes before us endured athletics. The same can be said for the Caribbean, What is your equation for success? the same thing but overcame because of their if there is a system put in place to showcase our determination. athletes and our sports persons not only can it Passion: don’t think about the money just help our tourism industry but also potentially think about the love for what you do. Given all the success you are currently become a major economic stimulator. attaining what has been the single most Commitment: when you think you can’t important lesson? Where do you see yourself professionally go anymore, that is when you give your all. or personally in five years? Push for those last 10 seconds whether it is Whatever you want to achieve is attainable if for getting that promotion, that degree or you learn to follow good advice and instructions. I am one of those God-fearing persons who crossing the finish line for gold. Sometimes you may feel that you have all the believe that my purpose in life is to help and to answers, but it is important to put your ego aside support others as much as I can. I want to work Confidence: believing in yourself, knowing and listen to those who genuinely want to help you. with children and who knows. Who knows? I your ability and work towards your dreams.

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OUR COMPETITIVE ADVANTAGE

PROFESSIONAL PROFILE Nationality Jamaican Born December 27, 1985 Residence Kingston, Jamaica Height 5ft. 0 in. (1.52 metres) SPORTS Sport Running Event(s) 100 metres, 200 metres Club MVP Track and Field Club Personal Records 10.70 (100m), 22.09 (200m) MEDAL RECORD Event 1st 2nd 3rd Olympic Games 2 2 0 World Championships 5 2 0 CARIFTA Games Juniors (U20) 1 0 1 CAC Junior Championships (U17) 1 0 0 World Athletics Final 1 1 0 Total 10 5 1 COMPETITIONS 2012 London Olympics 100m, 200m, 4x100m relay 2008 Beijing Olympics 100m 2013 Moscow World Championships 100m, 200m, 4x100m relay 2011 Daegu World Championships 4x100m relay 2009 Berlin World Championships 100m, 4x100m relay 2007 Osaka World Championships 4x100m relay 2009 Thessaloniki World Athletics Final 100m 2008 Stuttgart World Athletics Final 100m 2013 IAAF Diamond League 100m, 200m 2012 IAAF Diamond League 100m, 200m 2005 Tobago CARIFTA Games 100m, 4x100m relay 2002 Barbados CAC Junior Championships 4x100m relay AWARDS/HONOURS IAAF Female Athlete of the Year 2013 UNICEF National Goodwill Ambassador 2010 Grace Goodwill Ambassador 2010 ENDORSEMENTS Nike, Digicel, GraceKennedy CHARITIES UNICEF Jamaica, Pocket Rocket Foundation

Stephanie Bishop is a Communications Advisor at Caribbean Export. She is a development communications specialist with over 10 years professional experience and holds a Masters in International Affairs. www.carib-export.com 61 OUR COMPETITIVE ADVANTAGE the Caribbean: sun, sea, sand and sport BY JOELLEN R. LARYEA

All images provided by Caribbean Premier League

62 www.carib-export.com OUR COMPETITIVE ADVANTAGE

T20 cricket has reignited the imagination and draws crowds back to the stadiums for fast-paced games. Think of what it can do for tourism and the economy!

When people think of cricket in the broadcasters and sponsors alike. Global Caribbean, often it conjures up images of interest has grown significantly and this children playing on the pristine sandy beaches high-energy game has a natural home within against a backdrop of turquoise water with the the Caribbean, synonymous with vibrant, sun shining endlessly against it. colourful Carnivals and a party atmosphere. High energy is exactly what was experienced That’s a rather romantic image of yesteryear, at every CPL T20 game that was played during as today you are more likely to find children the summer of 2013. “There is nowhere playing football on the beach and basketball in the world that I have ever experienced in the parks. an atmosphere like what we had at CPL,” said CPL Chief Executive Officer Damien For quite a few years, regional and even O’Donohoe in a recent interview. international cricket had been played in the West Indies, more often than not, to half- The T20 series hosted more than 250,000 fans empty stadiums, but the inaugural Caribbean across six countries and 36 million viewers Premier League (CPL) Twenty20 (T20) worldwide. Approximately US $4.868 million competition finally reignited the imagination was spent in and around the stadiums, which of disgruntled fans. could result in an economic impact of US $91 million when hotels, travel, food and other In July and August of 2013, the Caribbean services are taken into consideration. witnessed sold-out stadiums, captivated crowds and international investment far These figures cannot be taken lightly, surpassing what the organisers had ever especially in view of the ratio of regional expected. The CPL represents for the region visitors to international tourists attending a great opportunity to exploit sport tourism, the games. As much as 90% of league has which is a fast growing sector of the global been funded from within the region, with travel industry. Digicel as the global sponsor and Guyana’s Limacol as the title sponsor. The success It was in September 2012 that the West proves that there is spending power within the Indies Cricket Board announced that it had region, O’Donohoe said, and “with the right finalized an agreement with Ajmal Khan, structure and the right team, we can deliver a founder of Verus International, to fund the world-class event in the Caribbean as the CPL league which operates under a franchise is second only to the Indian Premiere League.” model comprising six teams—the Antigua Hawksbills, the Barbados Tridents, the It is the production of world-class events in the Guyana Amazon Warriors, the Jamaica Caribbean that will support the development Tallawahs, the Saint Lucia Zouks and the of the sports tourism sector. The precedent Trinidad and Tobago Red Steel. has been set with the CPL and the goal should be to continue developing this product to T20 was introduced in 2003 as a new format further stimulate regional expenditure and for the game, a fast and furious version that to attract greater international investment to has become an instant success with cricket support the local economies. fanatics, and has also delivered significant value to multiple partners—team owners, The CPL has already seen investment from

www.carib-export.com 63 OUR COMPETITIVE ADVANTAGE

64 www.carib-export.com OUR COMPETITIVE ADVANTAGE

Hollywood stars Gerard Butler and Mark the flesh. Such celebrity status translates The CPL is now tasked to build its brand Wahlberg, who have stakes in the Jamaica into an immense opportunity for the CPL to capture the minds of tourists and those Tallawahs and the Barbados Tridents teams as well as other sports. Carole Beckford, interested in the Caribbean. The CPL has respectively. Long-term Caribbean investor, publicist for Usain Bolt, noted that at least the potential to grow beyond the Caribbean owner and founder of the Virgin Group Sir 450 elite Caribbean athletes are featured on shores. About 1200 cricket clubs have been Richard Branson has invested in the Antigua television year-round—from Jamaica’s Bolt to identified in New York alone, indicating Hawksbills and is a tournament sponsor. the US Virgin Islands’ basketball superstar there is a strong interest in what many Tim Duncan. It is estimated that 12 million would consider non-traditional markets. The Such celebrity endorsements, combined international sports tourism trips are made Indian Premiere League (IPL) was valued in with the opportunity for the CPL to be seen each year, a niche which represents 14% of 2010 at US $4.13 billion by the UK-based by as many as 80 million via ESPN, give the global travel and tourism market which brand consultancy Brand Finance, and rise to endless possibilities when it comes is expected to grow around 6% annually over although we can’t compare the CPL to the to boosting sports tourism, international the next four years. IPL because of the sheer size difference, the business, attracting foreign direct investment global cricket market is huge and available into the Caribbean, and the exportation of Sporting events are being made more for the Caribbean to seize a sizeable portion our goods and services. appealing to attend, with producers listening to significantly contribute to the region’s to the needs of their audience and providing economies. Increased media exposure of sporting events greater levels of comfort. CPL T20 has been is critical to raise the profile of sports. Live truly cemented as a Caribbean family event, With the support of the governments and coverage will always be preferred by viewers, with grandparents, parents, children and tourism boards, the CPL can assist in putting and thus the time zone difference presents women (24% of the audience) attending the the Caribbean in the homes of 80 million a challenge for the target markets that are matches. O’Donohoe noted that no costs were people worldwide, greatly increasing the most interested in the main international spared to ensure the overall experience was potential for avid cricket fans travelling to the sporting events. For example, UK fans are positive, with spectacular firework displays region or even vacationers who simply want sleeping whilst sport in the Caribbean is being and entertainment to support the cricket. to enjoy a different side of Caribbean life. played. Still, an increasing number of sports fans want to experience live events. The CPL’s scheduling during the height of After watching the scenes of jubilation, and Carnival season enables other events, such as the electrifying atmosphere witnessed in 2013, The media have the ability to create national festivals and concerts, to be created around it, who wouldn’t want to come to the Caribbean and international icons of professional further enticing visitors to the region. Sporting and experience the music, the culture, the athletes, which engenders greater demand, events bundled with the entire creative sector food, the Carnival, the people and, of course, as fans want to see their sporting idols in makes a very attractive destination. the home of the best cricket in the world!

JoEllen R. Laryea is the PR, Communication and Marketing Advisor at The Caribbean Export Development Agency and offers a wealth of international experience having worked with leading brands Nike, Sony and Apple. www.carib-export.com 65 OUR COMPETITIVE ADVANTAGE

the creative industries: exploring opportunities

BY ERICA K. SMITH

Creative industries can be defined as the cultural industries accounted for 4.9% of as festivals and concerts, particularly since “those requiring creativity, skill and talent, total employment. in the Caribbean the relationship between with potential for wealth and job creation music and the many carnivals is deeply through the exploitation of their intellectual Thus, within CARIFORUM the main focus rooted and inter-twined. Local carnivals property ” and include advertising, software has been on the cultural industries, with the act as an impetus for the creation of new development and architecture. Film, music, aim of taking advantage of the region’s rich musical content and provide opportunities publishing and the visual and performing diversity of cultural expressions. Examples for live performances locally, regionally and arts can be defined as cultural industries, a of this can be seen in the region’s music and even internationally. Revenue can also be sub-set of the creative industries. fashion industries which can be considered the generated through performance royalties, largest and most internationally recognisable to a lesser extent. According to UNCTAD , international trade industries that fall within the culture sub-set. in creative goods rose from US $198 billion The global music copyright royalties market is in 2002 to US $454 billion in 2011. In the Regional Music worth approximately US $7.7 billion, of which Caribbean, exports of creative goods in 2008 In the past decade, the level of exports from the Caribbean generates around US $4 million. were US $548 million while imports stood the music industry, specifically CD sales, has The management of regional Collective at US $1.2 billion. fallen dramatically; so too for the rest of the Management Organisations (CMOs) believes world. However, whilst the sale of digital that the level of royalties currently collected The World Intellectual Property Organisation music has compensated for this decline in in the Caribbean represents only half of what (WIPO) commissioned a number of studies other markets, the region has not experienced the market is worth. between 2007-2013 to ascertain the economic this shift. In fact, with the exception of, for contribution of the copyright-based industries, example, CRS Music and Media in Barbados, The Caribbean faces some tough challenges which would include cultural industries very few Caribbean rights holders are active as it relates to growth of the music sector. such as film and music publishing. The on the major digital distribution platforms results showed that these industries made a which generate a considerable percentage of Recessionary economic conditions have substantial contribution to the GDP of many their overall revenue. depressed the domestic live performance Caribbean countries ranging from 3.3% in market as evidenced by the sharp decline in Dominica, to as much as 8% in Saint Lucia. Another key area for rights holders to generate the number of performances in hotels and Moreover, in St Vincent and the Grenadines revenue is through live performances such nightclubs. Artists have also reported fewer

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opportunities for regional and international in order to overcome the obstacles that are Quite often the region’s focus is on performances, coupled with stagnant preventing the advancement of the regional participation in carnival-type activities in performance fees that have not significantly music industry. the diaspora markets, such as Notting Hill increased since the 1990s . Carnival in London, UK and the Labour Day Talent scouts from the international music parade in New York, USA; however, these It is important to note that the live industry often expect artists to have a solid types of free street events, unlike festivals performance market impacts the possibility local audience. Artists are encouraged to with gate receipts, do not generate substantial of achieving international success. Based on take advantage of opportunities to perform revenue or royalties in these countries for the flow of performance royalties (live and locally as this contributes to their overall many artists and do not facilitate the exposure radio), overall, the UK market has remained skills development and can expand their of a diversity of Caribbean genres. the strongest market internationally for repertoire, since they would need to Caribbean music, and despite fluctuations, compose new material for their markets in With the scores of tourists from Europe there has been a net export of royalties. order to keep live performances alive and in visiting the region annually, significant demand. International royalty earnings have efforts must be made to penetrate the In Barbados, based on royalty statements demonstrated little diversity over the years, buoyant and abundant festival stages of the provided to the local CMO, the highest value and it can therefore be argued that this is an UK, France, Sweden and Germany, in view of royalty earnings per annum for the top three indication that new music is not penetrating of their mature markets and receptiveness to songwriters was during the late 1990s and early the international market. compensate generously for performances and 2000s. During this period, royalties were as royalty fees. Therefore, efforts should instead high as US $100,000 when there were several This focus on the development of the local be redirected to attending the major trade bands touring internationally, and regularly market may translate to increased diversity of fairs, the World Music Expo (WOMEX) releasing music. Consequently, a decline in music available throughout the year and the and Babel Med Music for promotion and performance activity in the domestic market building of a solid domestic fan base. Upon networking opportunities with festival is likely to result in a decline in the level of achieving this success, artists should then look directors in order to increase participation earnings from the international market. toward the regional market for performance opportunities in festivals. opportunities at carnivals, for example, which This correlation between local performance will again add to the expansion of their fan However, radio airplay remains the most and international success must be recognized base and generate further income. important form of exposure providing www.carib-export.com 67 OUR COMPETITIVE ADVANTAGE

68 www.carib-export.com OUR COMPETITIVE ADVANTAGE tremendous promotional value, and an US $1.5 million. In the case of jewellery, relationships in Haiti and negotiating important source of royalty revenue both within figures from 2006 indicated Jamaican manufacturing agreements that would support the Caribbean and internationally. Therefore, exports of US $2.1 million. However, this the increased production required to grow artists should work toward gaining exposure figure is inclusive of items imported and re- international presence. In addition, Caribbean on European airwaves in particular where the exported through duty-free shopping, which designers could also benefit from the Trade demand for Caribbean music is relatively strong. could suggest that locally produced Jamaican Preference Programmes that are in place for This task, while difficult, can be achieved by: products were insignificant . Most recently, in Haitian Textiles and Apparel with the United seeking collaboration with European artists 2014, it was reported that the Trinidad and States, under which apparel imports from Haiti to do joint works; sponsoring radio shows Tobago fashion industry employs more than or 17 other Caribbean countries qualify for which feature Caribbean music and building 11,000 people either directly or indirectly, duty-free access. a network of European radio programmers to generating just under US $4 million annually . whom music can be distributed. Another means for designers to address Across the region the premier showcase capacity issues is through the licensing of Developing the live music market at the for Caribbean fashion has been Caribbean designs which removes the need to enter domestic, regional and international level Fashion Week (CFW) held in Jamaica, manufacturing agreements. However, cannot be ignored as it has an important role providing a platform for regional designers this requires good technical design skills, to play in the overall growth of the Caribbean to display to a global audience. The success the ability to present portfolios and very music industry. Internationally, the primary of CFW has influenced the establishment importantly, an understanding of intellectual effort should be placed on the European of similar events throughout the property rights from a legal and commercial market for a number of reasons. Europe has an Caribbean. These events, in addition to perspective. This in turn requires the apparent interest in “world” music generally. the participation of Caribbean designers capacity to monitor licensees in order to Evidence of the flow of royalties suggest an in major international fashion events such ensure that the design brand retains a good interest in Caribbean music.Europe also has a as New York Fashion Week, Miami Fashion reputation through consistent and quality substantial number of festivals and of course, Week, the Gallery during Berlin Fashion manufacturing. In order for this approach the access provided under the CARIFORUM- Week and regionally, Dominicana Moda in to be successful, there must be high-level EU Economic Partnership Agreement should the Dominican Republic, are where regional training on design, intellectual property rights be taken advantage of. designers have been able to promote their and licensing for regional designers and/or a brands and generate international interest. cadre of specialist advisors available. Individual artists cannot achieve the type of Designers, such as Heather Jones of Trinidad activity recommended for increased festival and Tobago, who have frequently attended Whether manufacturing or a design only participation and international airplay on trade events in Europe, the United States strategy is adopted, a consistent presence at their own. At the policy and institutional and Asia have been particularly successful. major regional and international events, as level, the region must consider investment in well as investment in branding and marketing a Caribbean Music Export Office, either as The challenge most regional designers are is required. But in order to truly expand the an independent entity or under the umbrella faced with when it comes to successfully sector, manufacturing solutions must be of the Caribbean Export Development establishing international presence is their implemented and fortunately, these can be Agency (Caribbean Export) or similar entity, production capacity constraints because achieved regionally. Caribbean Export as the which is responsible for the recommended of the limited regional manufacturing that regional trade promotion organisation with actions. This type of organisation exists at is available. Caribbean designers are often the contacts and market knowledge of Haiti the national and regional level worldwide confined to small niche markets that are less can provide assistance to designers and thus and the continued absence of such within likely to order in large quantities. Designers should be utilized. the Caribbean is notable. would need to establish relationships with external manufacturers, in order to fulfil a large What is apparent in both the music and Regional Fashion international order, should it be requested. the fashion industries is the need for sound The global apparel market is estimated knowledge and understanding of intellectual to be worth US $1.1 trillion annually . One country that can be utilized to address property rights. Particularly, design and Unfortunately there is limited statistical this very issue is Haiti, where there are copyright are the legal basis of the creative data relating to the economic contribution comparatively cheap labour costs, and some industries and thus should be fully embraced and employment within this sub-sector. It has large manufacturing companies that could in all policies and strategies as they play a been reported thatbetween 2003 and 2007, support the mass production of goods. specific and critical role in the expansion of apparel exports in Jamaica fell by 87% to just Caribbean designers should consider developing the regional design industry.

Erica K. Smith has been working in the creative sector for the past 15 years. Her academic background covers intellectual property law, sports law and international business. Her professional experience includes copyright licensing and management, regional and interna- tional consultancies in the creative industries in addition to the design, execution and implementation of training programmes. www.carib-export.com 69 OUR COMPETITIVE ADVANTAGE the voice of a region: Tessanne Chin’s rise to prominence BY STEPHANIE BISHOP

Image provided by NBC

70 www.carib-export.com OUR COMPETITIVE ADVANTAGE the voice of a region: In September 2013, a delightfully unassuming Some of Tessanne’s musical influences, Bryson, and Gladys Knight. She also toured and completely unaffected songstress from besides her family, include international for three years with Jamaican-born Grammy Tessanne Chin’s Jamaica shot to stardom and became one of acts such as Celine Dion, Tina Turner and award-winning singer and actor Jimmy Cliff. the Caribbean’s biggest musical stories for Michael Jackson, but inspiration also came However, in Jamaica, Tessanne’s music rise to prominence that year. Tessanne Chin’s stratospheric ascent from Jamaican legends Bob Marley, Jimmy received scant airplay. from relative obscurity, even in her homeland, Cliff, Toots, Third World, Marcia Griffith, to international fame after her triumph on and Diana King. “I will be the first person to admit that I NBC’s singing competition The Voice, has was struggling and at the point in my career positioned her as the first Jamaican to win the “I remember when Diana King first came on where I hit a glass ceiling. It felt like I was on competition and for a transformative career the scene, with her big music and big video. a treadmill running, but not going anywhere. breakthrough in 2014. I remember thinking that this is someone I It was very frustrating, especially when you can understand and my sister [Tami Chynn] know the type of artiste you want to be.” and I would write down every lyric because Musical Beginnings we wanted to sing just like her.” Because Tessanne’s talents weren’t fully Born in Kingston, Tessanne comes from a recognised in Jamaica, her mentor and musical background. Her parents Richard Marcia Griffith and Diana King also paved longtime friend Shaggy encouraged her to and Christine Chin formed the world’s first the way for Tessanne and other female audition for Season 5 of The Voice as a vehicle all-female ska band, The Carnations, which artistes in Jamaica, but growth in an industry for showcasing her skills. also featured her aunt Ingrid Chin, and other historically dominated by men is no easy feat. family members. Tessanne, however, never let this reality daunt “Naturally, I was a bit apprehensive, and I her dreams. knew I was going to get some backlash, but I “It was absolutely awesome,” Tessanne also knew the reach that this show had, and I recounts. “I have happy memories of going “I once heard Tanya Stephens say gender is not wanted to be a part of it. It was a chance to do to my parents’ rehearsals, and that was the a stumbling block or a handicap, so I never something I’d never done, to get something first time I picked up a microphone. I think looked at it that way. I believe that as long as I’d never gotten.” what made it so natural was the fact that you do your best in your craft, regardless of everyone was involved in the band…it was a gender, you will succeed. We have so many Today, Tessanne credits the competition with real family affair.” great female artistes in reggae and in other providing her the platform she needed to genres, so I believe it is more to our advantage gain international market access. She is now Undoubtedly, Tessanne’s background and as women today in music.” able to work with some of the biggest names culture significantly influenced her style in producing and songwriting, including of music. industry icons Diane Warren, Toby Gadd, International Exposure Claude Kelly and Rock City. “Growing up in Jamaica, music is the first Tessanne was named Caribbean Journal’s thing you hear, and it affected my sound, Artiste of the Year in December 2013 and also “The Voice gave me an opportunity to display but music is more than what you hear. In received a Gold Medal of the City of Kingston. my diversity, sing other types of music, and Jamaica, it is a way of life, the voice of the Prior to this, the reggae-fusion artiste, opened show people I’m not just this girl from Jamaica people.” for famous acts such as Patti Labelle, Peabo that can sing reggae music. I love my music, I

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Image courtesy of Official White House Image provided by NBC Photo by Chuck Kennedy

love reggae but this was not the only music I Tessanne describes the aftermath of winning “When you work at something for so long and had a passion for or the only genre I wanted to the competition as a “beautifully chaotic and so hard, it feels incredible to see great things sing. It gave me a voice, as cliché as it sounds, wonderful time” in her life. Since then, she happening. I will treasure the experience for I wanted to be seen as a vocalist first and the has been involved in numerous projects, the rest of my life.” competition gave me that exposure.” including filming commercials, media appearances, and performances, including a During the three-month broadcast, Tessanne concert hosted by the First Lady of the United International Market Access sang 13 songs, three of which reached the States Michelle Obama at the White House. Opportunities Top 10 on iTunes. With each performance Tessanne believes that her achievement on on The Voice, Tessanne thrilled the audience, “If someone told me a year ago [this would The Voice is more than just an anomaly. stunned the judges, and carried the hopes and have happened] I would have laughed. Don’t International markets are accessible for all dreams of an entire Caribbean region on her get me wrong, I’m a big dreamer, but nothing Caribbean artistes, but the right tools are shoulders. prepared me for this. It was such a beautiful needed to ensure the maximum capitalization and humbling experience to not just be on opportunities, she said. “To this day I am still bowled over by among President Obama and his wife, but the support. At first, when you’re doing also all of that wonderful talent.” “I think social media is so powerful because something like this, it is solely for you, but it has made the world smaller. Today, artistes then when I saw the outpouring of love on During the event, entitled “Women of Soul: In can reach out to millions worldwide. It’s Facebook and other social media outlets I Performance at the White House,’’ Tessanne important to know your brand and continue realized that I had the chance to do something was featured alongside an impressive line-up to push it. I have seen so many people move positive for my Jamaican and Caribbean of American music legends, including Melissa from overnight sensations to celebrities using people. It’s a humbling feeling and one that Etheridge, Aretha Franklin, Ariana Grande, this avenue; it shouldn’t be any different for you don’t take for granted.” Patti LaBelle, Jill Scott, and Janelle Monae. us here in the region.”

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Caribbean musicians are much more than something you feel and experience in every tough, but a lot of my strength, apart from the purview of reggae, dancehall, and soca, part of your being.’’ God, comes from my husband and my family.” she added, although these genres have vastly influenced other types of music. On her recipe for success, Tessanne credits Next Steps and Keys to Success hard work and dedication. “Music is one of our biggest exports, and not Between performances and promotions for just from Jamaica. We have something to offer The Voice, Tessanne is in Los Angeles working “When you are relentless, whatever you the world that no one else can, and it’s because on her debut album for Universal Republic. work hard at becomes a passion and you of our culture, our heritage, and our people. can’t imagine yourself doing anything else. It is unique and it is beautiful.” “I’m full steam ahead with this album and I’m I don’t have a back-up plan, music is my fully aware of the momentum behind me so instrument.” When people come to the region, it’s for more I’m building on it, but at the same time I have than just sand, sea and sun; they come for the so much love and respect for my fans that I In her habitually humble way, the Solid culture and music is a big part of that equation, want to take my time so I don’t put out an Agency artiste had words of encouragement she added. She pointed to the exploits of album that is rushed. It has to truly be my best.” for emerging regional artistes. “Take chances Rihanna and Bob Marley as examples of what and believe in yourself and do things in the region has already achieved globally. Throughout this journey, Tessanne has had alignment with what you want to achieve.” a tremendous support system. “What they have done is not simple, but And for emerging female performers, she they are paving the way for other Caribbean “In this industry, a strong network and had some extra advice: “Just know who you musicians to make something that is unconditional support from family is are and continue to find out the kind of organic and that other people can relate everything. This is what helped my career for artiste you want to be, because if you don’t, to. Caribbean music is an emotion. It is so long. There are times when it gets really the world will decide it for you.”

Stephanie Bishop is a Communications Advisor at the Caribbean Export Development Agency. She is a development communications specialist with over 10 years professional experience and holds a Masters in International Affairs. www.carib-export.com 73 OUR COMPETITIVE ADVANTAGE designing Haiti BY JOELLEN R. LARYEA

All images provided by ModAyiti

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Since the catastrophic earthquake in 2010, research will now be available to support together to design and produce a range of the world has been gripped by Haiti, and the development of the apparel, textiles, clothing, shoes, jewellery, and handbags for dedicated to assisting in its recovery and and craft sectors. CHAPES will provide local and international markets. By means redevelopment. The Haitian people are the needed expertise in entrepreneurship of ModAyiti’s expertise, designers and known for their resilience and creativity, so training, project development, management technicians will be provided with the tools to it is no wonder that the creative industries and feasibility studies. expand and standardise garment production are being positioned to drive economic using modern sewing equipment. development. The team has secured funding from the Clinton Bush Haiti Fund to take ModAyiti a Haiti’s cultural intrigue will also contribute In 2012, Haiti proudly staged its very first step beyond a yearly fashion event. The project to the success of its creative industries. The fashion week, also known as “ModAyiti” will see the creation of a garment workshop mixture of cultures as a result of colonisation in Creole, in the centre of the recovering facility that develops the skills of tailors and by both the Spanish and French, fused with Port-au-Prince, just two years after the technicians who are required to support African and voodoo influences, has given earthquake. The event provided local the growth of a garment manufacturing birth to a unique cultural heritage. Those designers the opportunity to be noticed industry within Haiti. The ModAyiti Apparel outside of the region are fascinated by the by international viewers, thanks to the Centre will provide Haiti’s talented textile colour, the creativity and flair that David attendance of international designers, guests professionals with the space, training, and believes is “innate in Haitians.” Durcé echoed and the press. The event was produced by the resources needed, enabling them to bring their these sentiments fervently, saying that the Haitian Centre for Support and Promotion unique products to an international market. “difference is in the mind, in the creativity” of Enterprises (CHAPES) and the Haitian of people from the Caribbean. Network of Designers (HAND), which are The establishment of such a facility is playing an integral role in the development significant for not only Haiti, but the region as Haiti and the rest of the Caribbean’s creative of the Haitian fashion industry. a whole. The Haiti Hemispheric Opportunity sector is a niche poised to be exploited for through Partnership Encouragement Act the benefit of the region’s economy. David Caribbean Export spoke to veteran designers (HOPE II) and the Haiti Economic Lift believes that two approaches are necessary Ma ёlle Figaro David, President of the Haitian Programme Act (HELP) passed by the US for this to occur. One, there is a need to focus Network of Designers (HAND) and Maguy Congress allows for quota-free access to the on developing high-end products because of Durcé, Vice President of HAND and CEO American market with generous rules of the limited capacity of individual garment of ModAyiti, about the development of the origin. Regional designers are encouraged workshops to support large mass production Haitian garment design and manufacturing to take advantage of such a facility for mass orders. Two, increasing volume and building sector as a means to bolster their economy. production. Moreover, the proximity of capacity for mass production is an area the Haiti to North America allows for lower ModAyiti Apparel Centre should focus on HAND is a non-profit association established shipping costs and time-to-market. Haiti to bolster the sector; but it is a balancing act in 2009 to unify Haitian designers and is well positioned to become the fashion to ensure that both market segments can be strengthen their capacity. The designers manufacturing industry for the entire pursued simultaneously. experienced “the same issues when it came Caribbean region. to sourcing raw materials, promoting and One thing is certain; the fashion industry is no selling their creations to international Culture and heritage are at the heart of longer quiescent in Haiti, with the ModAyiti markets,” said David. Through the partnership every Haitian designer and this is proudly Apparel Centre scheduled for completion between HAND and CHAPES, educational reflected through their work. Under the soon, which will increase Haiti’s competitive programmes, awareness campaigns, and market roof of ModAyiti, designers will come advantage in this niche sector.

JoEllen R. Laryea is the PR, Communication and Marketing Advisor at The Caribbean Export Development Agency and offers a wealth of international experience having worked with leading brands Nike, Sony and Apple. www.carib-export.com 75 OUR COMPETITIVE ADVANTAGE COMPANYcompany to TOlook out for:LOOK OUT FOR: mag’art

Company Name Product Summary Market Entry Strategies: MAG’ART Apparel and accessories MAG’ART has made a name through constant exposure at local, regional and international Email Address Export Markets fashion shows. Durce’s debut appearance was [email protected] Dominican Republic, Miami, Tokyo at the Haitian Femme de Democratie in 2003. Seven years later, after becoming a local fashion Chief Executive Officer Major Exporting Achievements icon, MAG’ART burst on to the regional scene Maguy Durce In November 2013, Durce was awarded the at the Islands of the World showcase, in the first prize Afro K 2013 at the fifth edition of Bahamas. In 2011, Durce took MAG’ART to Years in Existence the prestigious International Competition Miami Fashion Week and to another level. 11 years of the Afro Caribbean Fashion, organized MAG’ART has since graced the runways at by the Association Afro K in Paris, the showcases across the region and in Europe. The Location fashion capital of the world. As the winner, year 2012 saw the inaugural staging of Haiti Haiti she was given the opportunity to present Fashion Week, organized by ModAyiti of which her newest collection at London Fashion Durce is the Chief Operating Officer. The Week 2014. event garnered major international attention in

76 www.carib-export.com COMPANY OUR COMPETITIVE ADVANTAGE TO LOOK OUT FOR:

All images provided by MAG’ART

the wake of the devastating earthquake which national agreements in order to open up to General Recommendation on Support affected the island in 2010. other markets and to allow tax exceptions Needed by Exporters which can make exporting more feasible for Firms need support at all stages of the exporting Greatest Exporting Lessons Learnt designers and manufacturers. process. Initially, they need to understand the It is key to target niche markets. As a designer one demands and specifications of their markets. would, of course, like to export internationally Support Received Once the enterprises have a clear idea of how and to be present in all markets, but, in order to Caribbean Export selected MAG’ART to be to proceed with market penetration, they will survive, it is important to have a solid and growing part of its designer delegation to Dominicana require assistance with marketing in order fan base that you can constantly cater to. Moda 2013. The collection was showcased in to raise awareness about their brand and to the prestigious Designers’ Mall. Through this target niche markets. Finally, when the much Trade legislation has a tremendous impact on experience, the line not only gained further anticipated order comes in, firms will be in what is possible when it comes to exporting. exposure but very useful industry contacts great need of support to secure subsidized raw It is important to be involved in the process from across the region and the world. materials to produce in an economically viable of creating and refining the legal framework manner. In exporting, governmental support is in which exporters can effectively operate. required to create tax concessions and tariffs, so Equally important is the formation of bi- that exporting arrangements can be as lucrative as possible.

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In the mid-90s, Dominica was looking to improve its positioning in the tourism industry. This gem, replete with rivers, valleys, mountains creole music and waterfalls, wanted to showcase more than its fair share of nature’s bounty in order to grab mindshare and more foreign exchange from the tourism industry. In 1996, out of a new reaps benefits collective and creative thinking, the Dominica Festivals Commission was established to stage national and annual festivals in Dominica. for the Dominica, the youngest island of the Caribbean archipelago, had created two musical genres namely Cadence-lypso in Dominican the mid-70s and Bouyon in the late-80s. To showcase a wealth of creativity and our Creolite, Dominica’s World Creole Music tourism Festival (WCMF) was conceptualized. Dominica’s leadership role in shaping Creole music was considered a major force in world music and the island’s geographic industry location, positioned between two major BY COLIN PIPER music consuming markets of Guadeloupe and Martinique, would provide the impetus for the growth of this new experience.

The festival was positioned to create a new buzz in Dominica and to help increase visitor arrivals by attracting a new and growing group of visitors

All images provided by Discover Dominica Authority

78 www.carib-export.com OUR COMPETITIVE ADVANTAGE who were looking to consume indigenous Haitian Kompas kings Tabou Combo; Carimi, world-class event to attract new audiences to the musical idioms such as Creole music and the and the current President Martelli; Louisaina destination, building local capacity for festival related offerings in Caribbean popular music. zydeco group Buckwheat Zydeco, reggae stars tourism, providing exposure to unknown local Dominica’s independence was specifically Shaggy, Beenie Man, Damian Marley, Third artistes and the island’s rich musical heritage, chosen as the distinctive period for staging the World and Steel Pulse; and many top soca and gaining greater international exposure. event and to attract music aficionados who artistes including Destra and Machel Montano, were searching for these unique musical forms and Haitian American superstar Wyclef Jean Since the festival’s inception, it has catapulted and to experience a cultural milieu that was have all graced the WCMF stage. the month of October into the top three of different and authentic. Careful consideration stay-over visitor arrivals. Between October 21 was given to the name and make-up of this In 2008, the Discover Dominica Authority and 28, 2012, 83.7% (2,606) of the people festival so as to give it a particular identity and a was established as the tourism authority, visiting specifically for the festival of that comparative advantage against other prominent and shortly thereafter, a Cabinet decision year arrived. Prior to the introduction of the music festivals. changed the Commission to a Committee, festival, arrivals in October averaged 3,000 and placed it under the ambit of the Discover visitors, with a peak of 4,090 in 1990. October Since 1997, Dominica has staged one of Dominica Authority. The change took place was also historically one of the lowest arrival the most indigenous music festivals in the to establish a closer and tighter link between months for stay-over visitors to Dominica. Caribbean, highlighting the Creole musical the authority responsible for developing and idioms of Cadence-lypso and Bouyon from marketing the destination’s tourism and the In 1996, October’s visitor arrivals were Dominica, Kompas from Haiti and Antillean secretariat responsible for implementing 3,683; in 1997, with the introduction of Zouk from the French West Indies. the two marquis festivals of the island— the WCMF, there was an instant growth Carnival and the World Creole Music in arrivals of 28% to 4,715. This growth To add variety and to complement the infectious Festival. Since then a third, Jazz’n Creole, in arrivals in October continued almost Creole rhythms, the festival has attracted a wide has been established and will celebrate its seamlessly for the first 10 years of the sampling of African, Latin and other Caribbean fifth anniversary in 2014. festival, reaching 9,451 in 2006, a 156.5% music. Since inception, the WCMF has lured growth from 1996. In 2008, notably also the most significant artistes and performing The World Creole Music Festival which the celebration of 30 years of independence, talent representing this aspect of world music. celebrated its 17th staging in October 2013 is Dominica welcomed 12,126 visitors during Artistes such as Exile One, creators of Cadence- fulfilling much of its original mandate. This October, and just about half (5,883) arrived lypso; Kassav, the French Antilles Zouk band; includes increasing visitor arrivals, creating a during the week of the festival.

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Guadeloupe and Martinique, which were and historical linkages. Visitors from the is estimated that the festival accounted for instrumental in the development of Cadence- Caribbean constitute a significant proportion up to EC $5 million of economic activity. lypso music in the Seventies (with a more of arrivals during the festival, contributing developed musical infrastructure which significantly to the successes and helping to The destination is not the only winner. allowed the production and distribution give greater legitimacy and validation to the Traditional acts have performed and done of Dominican music to their markets and authentic nature of the festival. cultural exchanges to Guadeloupe and other markets in Europe and Africa), have Martinique. Also Dominica’s most recent supported the festival in a variety of ways. Dominica has benefited tremendously from music creation Bouyon music is taking staging the World Creole Music Festival. The root in Guadeloupe; and one of the most The festival has received technical and festival is firmly entrenched in the calendar consistent performers of that music Tripple financial support from cultural and political of events for the year and you can’t mention Kay have seen success which coincidentally institutions in the French West Indies (FWI). the event without acknowledging the host. So has occurred during the period of their It has received the largest numbers of visitors awareness of the destination is up. performances at the last eight World from both Martinique and Guadeloupe each Creole Music Festivals. Asa Banton, also year since its inception; built important links Visitation during that time of the year has known as the prince of Bouyon music, is with media and communications networks picked up as well and the attendant economic also experiencing success in Guadeloupe, St in the promotion and marketing of the benefits of visitor spend both within the Maarten, USVI and further afield, buoyed festival to audiences in the FWI and France; hospitality sector and trickling down to the by his performances on the WCMF main and has helped in giving greater legitimacy ancillary services is evident; accommodation stage over the past three years. As many as to the survival of the festival. The festival has is in demand, restaurants are busy, car rental four local bands have been invited to perform helped to increase business-to-business links agencies are sold out and even hair salons are in the Antilliaanse Feesten held annually between Dominica and the FWI in areas packed because folks want to look their best in Belgium, a relationship strengthened by such as transportation, export and sale of at festival time. annual visits to the WCMF by the festival agricultural produce and in tourism. In general, organizer. the WCMF has helped to increase awareness Dr Keith Nurse conducted a study that of Dominica in the FWI and has stimulated showed the returns to the economy are up The festival has created spin-offs and cultural, economic and social connections. to nine times the government’s investment investment opportunities, albeit linked to the in the festival, making it one of the highest music sector currently. Local entrepreneurs The WCMF has also impacted on the rest of “returns on investments’’ festivals in the have invested in musical equipment and the insular Caribbean, providing an important Caribbean. Surveys of WCMF 2012 show in sound systems and stage and roofing platform for exposure for artistes and that patrons to the festival spent up to EC infrastructure to bid for WCMF and other contributing to the strengthening of cultural $200 per person outside of ticket price. It festivals during the year.

For more information on the Discover Dominica Authority visit www.dominica.dm

80 www.carib-export.com clearing the hurdles Clearing the Hurdles evaluating the main challenges to Caribbean private sector development BY SYLVIA DOHNERT

Access to finance is the biggest constraint for the private sector. Here is how firms can get the support they need.

Growing Pains country peers. Moreover, the region’s stock of Constrained by this debt overhang, the The Caribbean region has grown at lower rates debt/GDP is about 24% higher than in other region’s level of investment/GDP is merely than other small, comparable economies in small economies, and all of the Caribbean 15% or half of that of the rest of the world. the past few years. Although the region is countries, except for Suriname and Trinidad While the region boasts relatively high levels expected to grow 2.4% in 2014, against 1.9% and Tobago, appear in the global list of highest of capital investment per worker, total factor in 2013, this will be below that of other small- ratios of debt/GDP. productivity growth in the region has stalled,

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indicating that there are issues affecting the than their ROSE counterparts. Difficulty in The World Bank’s Doing Business indicators efficiency with which the region uses its accessing finance matters, as the literature support these findings. Despite differences factors of production. shows how credit affects sales growth rates, across countries, a mapping of the 2013 Doing regardless of the size of the firm. The age of Business indicators reveals “Access to Finance” Given this context of scarce fiscal space for the firm also matters, as older firms are less as the second worst-ranked constraint across governments to even sustain the levels of likely to innovate, and evidence lower rates the region, with 14 out of 15 countries investment required to sustain development, of sales growth. Most worryingly, Caribbean ranking 83 and above out of 183 countries and stationary total factor productivity growth, firms are less open to trade than firms in other (Trinidad and Tobago, being the only outlier the region relies on private sector development small economies, as only 11% of firms export, ranked at 23). and innovation to reignite growth. However, 8% import, and 2.3% trade both ways. are Caribbean firms prepared to grow? A Registering property, which affects the comparison between the characteristics of In sum, in the Caribbean, 82.5% of firms ability to access credit through its effects Caribbean firms with those in other small compete for limited domestic markets, a on collateral, is the worst ranked constraint economies indicates that the average Caribbean trade orientation that inhibits their growth common to the 15 countries in the region. firm does not have characteristics associated and productivity-enhancing prospects. The best-performing country (Jamaica) with dynamism. Conclusions arising from this analysis indicate ranks at 105 out of 183 countries. Enforcing that in order to improve the possibilities of contracts, which affects access to finance An analysis of the 2010 Enterprise Surveys the Caribbean private sector to drive growth, through its impact on risk, is the third worst- shows that on average, the Caribbean region’s efforts should be focused on making finance ranked constraint shared by the region, with private sector’s performance between 2007 available, stimulating firms to undertake the best-performer (Antigua and Barbuda) and 2010 is lacklustre when compared to innovation, and increasing pressure on ranked at 72. Other constraints, such as the Rest of Small Economies (ROSE). This productivity by involving more of the region’s protecting investors, getting electricity, starting is particularly in terms of sales growth, firms in international trade. a business, dealing with construction permits, employment growth and productivity, even resolving insolvency, paying taxes and trading when adjusting for lower rates of growth in Caribbean firms’ growth prospects are not across borders show a diverse picture in the the Caribbean relative to ROSE during those only affected by the characteristics of the region, with some countries ranking in the three years. firms themselves, but also by the environment 25th percentile, while others in the 75th . in which they operate. Across most of the The Enterprise Survey data also reveal region, this environment is characterized Regional agencies and donors need to ensure significant differences between the by very small domestic markets (Haiti and that access to finance is available to firms and profiles of the Caribbean and ROSE’s Dominican Republic being exceptions) and clusters which demonstrate the potential business sectors, which could explain these low national economic growth rates (with to implement innovative, replicable and differences in performance. Caribbean firms the commodity exporters and Dominican scalable business models with high growth, tend to be smaller (three quarters have less Republic being the exception). export and employment potential. This than 20 permanent, full-time employees), must be complemented with enhancing the older (more than 20 years of operation) In addition to small domestic markets, the national and regional environments in which and less involved in foreign trade than region’s business climate makes it difficult firms invest and operate by strengthening their ROSE counterparts. Moreover, they to mobilize capital (land, finance), and both public and private sector institutions are concentrated in the tourism and retail imposes significant transactions costs on the to undertake the necessary reforms to enable sectors located in middle-sized jurisdictions, daily activities of the firm. Regardless of firm private sector growth. Through the Compete and ownership is predominantly local. size, the Enterprise Survey 2010 data reveals Caribbean Program, these constraints are being that for the Caribbean, access to finance is addressed through the Enterprise Innovation These differences matter. Across the world, the major constraint (34% of respondents). Challenge Fund and the Business Climate firm size influences productivity, profitability Access to finance appears to be significantly Enhancement Facility. and survival rates, and a proven relationship more difficult in the Caribbean than in other exists between firm size and the cost and small economies—34% of surveyed firms report For more information on Compete ability to access finance. Caribbean firms it as a constraint, against 24.7% in the rest of Caribbean, please refer to report more difficulty in obtaining credit small economies. www.competecaribbean.org

The Compete Caribbean Program is jointly funded by the Inter-American Development Bank (IDB), the United Kingdom Department for International Development (DFID) and the Foreign Affairs, Trade and Development Canada (DFATD), and supports projects in 15 Caribbean countries. Projects in the OECS countries are implemented in partnership with the Caribbean Development Bank. www.carib-export.com 83 Clearing the Hurdles dilemma of difference BY PROFESSOR DENSIL WILLIAMS

Regional firms produce the same items. That’s one reason intra-regional trade is so low. But that’s not all holding us back.

Tremendous opportunities for commerce indisputable fact—there are opportunities do not have a choice but to engage in trade abound in the CARICOM region. However, within CARICOM for an increase in the level as it will enhance the welfare of both sides. a large number of Caribbean firms have of intra-regional trade. So why are CARICOM not been able to exploit these market firms unable to increase trade in the region? In CARICOM, almost all the countries opportunities. International trade data reveals produce and trade the same items: sugar, that intra-regional trade in CARICOM is While the problems are many, empirical bananas, rice, light manufactured goods, among the lowest among regional trading research has pointed to a few issues on the tourism. If all the countries are producing blocs across the globe. supply side that have hindered increased the same items, logically, why would they trade among Caribbean firms. This article want to trade among themselves? It would The Association of Southeast Asian Nations will highlight some of the issues. be easier for the firms to find other locations (ASEAN) group, a regional integration such as North America or Europe and sell movement of Asian countries, has intra- Supply side Factors their outputs because those countries will be regional exports accounting for 22% of For trade to take place with any strong more in need of the items that are produced total exports; the EU, a regional integration vibrancy there needs to be complementarity in the region in order to increase their overall movement of European countries, has intra- among trading partners. Trading partners welfare. So it is no surprise that trade from regional exports accounting for 55% of total cannot all produce the same things and CARICOM countries to North America and trade, while in CARICOM, intra-regional expect to trade effectively. One partner has Europe is much higher than trade within exports account for merely 13% of total to have something that the other partner CARICOM. trade. These figures have underscored an wants and vice versa. Then both partners

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The main supply side constraint to exploiting which resulted from the global financial Here are some approaches to resolving supply business opportunities in the CARICOM crisis of 2008. Grenada, St Kitts and Nevis, side constraints: region is the similarity of production and Antigua and Barbuda, for example, • Deal with the issues of similarity in networks or the lack of complementarity have witnessed periods of macro-economic production networks. Firms will have to among countries. Caribbean researchers instability, although not as prolonged as share production networks to limit the have termed this problem the dilemma of Jamaica, which have increased the cost of production of similar goods and to gain difference (Wint, 1995). Business executives doing business in those locations. economies of scale in production. For will have to think long and hard about how example, light manufacturing firms may to overcome the dilemma of difference Corporate leadership at the want to consider doing their manufacturing by building complementarities in their enterprise level in Trinidad and Tobago, where the cost of production networks. Studies have shown consistently that energy is cheap, and then do the distribution ineffective leadership at the corporate level in the wider CARICOM market from a Several other micro-economic and also prevents firms from taking advantage of point of easy access such as Jamaica in the environmental issues affect the supply side of business opportunities (Williams, 2007; Wint, Northern Caribbean and Barbados in the doing business in the Caribbean and prevent 2003). Corporate leaders who do not have an Southern Caribbean. Firms will have to firms from exploiting business opportunities. international focus and are unable to adapt decide not to produce the same items. This These include: to the changing environment in which their will require strategic thinking and proper • Unstable macro-economic environment businesses operate will generally fail to spot rationalization of plants. Research and in most of the CARICOM countries. international business opportunities. And so development on the production networks • Lack of adroit corporate leadership at their firms miss valuable chances for improving in CARICOM will be important to help the enterprise level. their value to shareholders and stakeholders. firms deal with this issue. • Ineffective business and competitive strategies. Ineffective business and • Place greater emphasis on business competitive strategies and management training among Unstable macro-economic A less talked about supply side constraint Caribbean firms in order to get the environment is the lack of appropriate business and correct talents in the right place. Macro-economic instability brings competitive strategies (Barclay, 2005; Corporate leadership is both an art unanticipated cost to the operations of Williams & Clegg, 2008). A number of and a science and will require astute enterprises. The larger markets in CARICOM, Caribbean firms do not practise generic and visionary individuals to hold Jamaica and Haiti are generally seen as strong competitive strategies nor do they have the key positions of change agents in consumer markets for the other countries a strategic plan. They generally base their these enterprises. Training in the key of the region. However, the macro-economic business model on relationships and inter- principles of management, decision environment in these markets is generally connectedness of social and business ties, making, networking and strategic unstable because of the high debt burden of otherwise called networks (Williams, 2007). planning will help executives to better the central government, the high level of fiscal Without carrying out effective and proper spot and exploit business opportunities. deficit, high interest rates, high inflation rate, strategic planning where market dynamics The business schools in the region must and the unstable exchange rate. are taken into consideration and fore-sighting take the lead in designing curriculum is used to spot opportunities, Caribbean that is appropriate to the needs of the These markets are characterized by macro- firms will always be behind the eight ball enterprises in the region. economic instability which leads to when it comes to identifying and exploiting unanticipated cost for doing business. So firms international business opportunities. • Fix the macro-economic environment, find it difficult to exploit business opportunities more a task for the national leaders there because the cost of doing business in these Overcoming the constraints than business people. A stronger larger markets can become burdensome. Caribbean firms will have to find ways to focus on generating macro-economic overcome the supply side constraints to their stability in all countries is required, so Smaller markets in the CARICOM region are growth and profitability. Importantly, they that firms can be more confident and also facing serious issues of macro-economic cannot merely copy and paste solutions from have greater certitude in doing business instability because of the high debt burden other jurisdictions in order to deal with their across the region. This will help savvy of their central government operations, inherent problems. Targeted context specific corporate leaders to better position and the reducing foreign exchange inflows. research will have to be conducted in order their businesses to take advantage of Foreign exchange income fell because of to identify the problem and then design international business opportunities in the drop in international business activities specific solutions. the regional space.

Densil A. Williams is Professor of International Business and Executive Director of the Mona School of Business and Management at UWI, Mona Campus www.carib-export.com 85 Clearing the Hurdles trade finance: essential fuel for Caribbean trade growth BY LORNE DYKE AND ALEXANDER R. MALAKET

86 www.carib-export.com Clearing the Hurdles

International trade is vital for economic advantageous payment/financing terms: development, especially for smaller a market competitive reality with direct countries with a paucity of endowed implications for export success at the firm resources. Despite the imperfections of level as well as at the national/regional level. the global system of trade, robust, rules- based trade creates economic value, Trade Finance in Practice raises standards of living and can play Trade finance, at its core and irrespective an important role in poverty alleviation of the particular complexities of a single and international development. The transaction, involves some combination of CARICOM-EU Economic Partnership four elements: Agreement (EPA) as well as the Caribbean Single Market & Economy (CSME) have • Secure and timely payment across brought this reality into sharp focus, as well borders; as the prospect of a renewed Caribbean- • Timely and affordable financing; Canada trade agreement (CARIBCAN). • Effective mitigation of risk; and • Provision of financial and transactional Small and medium-sized enterprises information. (SMEs) worldwide have long identified access to financing as an obstacle to growth. If a buyer and seller navigate all the Similarly, challenges and obstacles in complexities and challenges of international accessing trade finance impede the ability of business, from legal and cultural issues, to SMEs to enter and succeed in international logistics, to product adaptation and beyond, markets. The scope of the challenge is clear: but fail in the final step—delivery of the over 80-90% of merchandise trade flows promised product and payment for same— globally rely on some form of trade finance. the entire transaction is for naught. This obstacle is amplified in developing and emerging markets. Documentary letters of credit, also referred to as letters of credit or LCs, are supported by a set of guiding rules first developed by the Paris- Commercial Considerations in based International Chamber of Commerce Trade Finance in 1933, and their use and interpretation is In a post-crisis environment, still exhibiting highly consistent across markets, across legal constrained liquidity, exporters’ ability traditions and across political systems. LCs to offer an attractive financing package also provide the most balanced protection of for potential buyers, provides significant the interests of buyer and seller, importer and competitive advantage. An importer is more exporter, with banks taking a critical role in likely today to do business with an exporter the structuring, interpretation and execution who offers both a quality product and of letter of credit transactions.

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LC Transaction Flow Sales Contact Importer & Exporter Delivery of Goods

L/C Application Exporter Document Payment Exchanged Document Verification For Documents Exchange of Payment

Issuing L/C Issued/Advised Advising Bank (With Confirmation) Bank Settlement/Payment Confirming Bank Source: Financing Trade and International Supply Chains, Malaket, 2014

An importer requests its bank to issue a mechanisms that can meet a wide range of Open Account and Supply Chain letter of credit—a legal promise by the bank needs, including risk-transfer between parties, Finance to pay the exporter. In so doing, the importer and financing to one or more trading partners Recent international trade patterns and provides assurance to the exporter that he or in a transaction. practices have seen a marked shift away from she is relying on the payment undertaking traditional trade finance instruments, with of a (theoretically) well-established and Letters of credit have earned such trust, that LC’s now accounting for only about 10-20% of financially solid bank, as opposed to that there is a perception in some circles that an trade transactions globally, and so-called “open of the importer. At the same time, the LC is “just like cash.” Such misconceptions, account” transactions now used in the majority use of an LC assures the importer that and the nuances and complexity in of transactions globally. In open account trade, payment will only be made, once it has been structuring trade finance instruments, an importer sends payment at an agreed time demonstrated through the submission of suggest the need for careful research, good (say, on shipment of the goods, or on receipt agreed documents, that the exporter has advice, or both. The International Trade of same), and little or no risk mitigation is fully met all agreed contractual terms. Centre in Geneva published How to Access provided to either party. Trade Finance: A Guide for Exporting The exporter receives assurance of payment, SMEs in 2009—a comprehensive guide to In response to growing open account trade, and the importer receives the security of trade finance. Leading international banks, banks have been working to devise solutions knowing precisely the conditions under which as well as government agencies have also in supply chain finance (SCF), where the focus payment will be effected. Documentary published various guides and resources, is on an ecosystem of trading relationships, credits provide a variety of features and many accessible online and at no cost. as opposed to one importer and exporter at a time. Supply chain finance provides some excellent opportunities for Caribbean SMEs to access trade financing. Supply Chain Finance Supplier Sub- China Supplier

Supplier Manufacturing Distribution Malaysia (South Asia) (Regional) Services Manufacturing Buyer Distribution Providers (Latin America) (Importer) (Regional) Supplier Brazil Manufacturing Distribution

(CEE) (Regional) END CLIENT Sub- Supplier Supplier Hungary Source: Financing Trade and International Supply Chains, Malaket, 2014

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One recent innovation is the “buyer-centric” SCF institution could work collaboratively with business. The IDB trade finance programme, programme, where a large global buyer/importer national entities and other institutions, such as established in 2005, has supported nearly with hundreds, perhaps thousands of supplier the Inter-American Development Bank (IDB) 2000 transactions worth almost $2 billion, relationships across the globe, works with a bank and the World Bank/IFC, already active in the with zero losses. Bank activity demonstrates to provide financing/liquidity to suppliers (often region. Some harmonisation of trade finance comparable levels of default or loss experience. SMEs located in emerging markets) on the basis programmes and facilities has the potential to (See International Chamber of Commerce of the buyer’s borrowing capacity, with a view to enhance the region’s trade finance capacity and Rethinking Trade and Trade Finance 2013.) assuring a healthy supply chain. capability, complementing trade development initiatives and practices in a synergistic manner. Twenty-First Century Trade Finance National/Regional Policies and A senior UK-based finance executive recently Trade Finance Access to trade and supply chain finance should noted that his company could move 150,000 Caribbean exporters could benefit from be encouraged and facilitated by national and cubic metres of liquefied natural gas faster than linking up with global supply chains, to regional political leaders to create an environment it could move 500 grams of paper (through a gain access to financing through buyer-led which enables firms to access appropriate levels traditional trade finance transaction process). programmes, at substantially lower cost. The of finance, including adequate risk mitigation in This costly reality highlights the motivation for support of a regional financial institution the conduct of international commerce. developing more efficient, technology-enabled specifically mandated to provide trade and trade and trade finance capabilities, including supply chain finance solutions to Caribbean Trade finance is now understood to be extremely the increasing use of electronic documents and companies would be invaluable. Such an well risk-mitigated and very low risk as a payment mechanisms.

Positioning the BPO

Contract Contract Contract Buyer Seller Buyer Documents Seller Buyer Documents Seller Documents Application

Bank Data Open Letter of Payment Account Credit Data Obligation Advice Documents

Documents Data LC Issuing Issuance LC Advising Obligor Recipient Buyer’s Seller’s Bank Bank Bank Bank Bank Bank Payment Payment Payment Banking services based on paper Banking services based on Banking services limited to document processing electronic trade data exchange payment processing

Array of risk, financing and processing services to address both crash management and trade finance needs

Source SWIFT/ICC Industry Education Group

The Bank Payment Obligation (BPO), a trigger payment decisions based on automated Market needs and conditions are ideal solution now jointly marketed by Belgium- matching of electronic data. The BPO offers today, for political and business leaders to based SWIFT, and the Paris-based International a cost-effective option somewhere between ensure adequate access to trade and supply Chamber of Commerce, aims to provide a an LC and an open account transaction, chain finance for Caribbean companies— data-driven payment and financing solution, improving the efficiency of the former and the essential fuel to sustainable success in through participating banks, to importers enhancing the risk mitigation and financing international commerce. and exporters prepared to transact, and to options of the latter.

Lorne Dyke is an international business consultant and Alexander R. Malaket, CITP, president, OPUS Advisory Services International Inc.

www.carib-export.com 89 Clearing the Hurdles regional food safety in focus: insights with technological solutions limited BY STEPHANIE BISHOP

All images provided by Technological Solutions Limited

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Technological Solutions Limited (TSL) is a market access. This includes anything from the companies as it relates to efficiencies, regionally-based global consulting firm, which designing the facilities, and training staff, to compliance, expansion and growth. We provides guidance in trade-related technical putting all the production systems in place strongly advise firms that it is a fraction of requirements with a specialization in food that are necessary for firms to meet the market the cost to ensure that the facility is properly safety, quality assurance, production system entry requirements of countries to which they designed as a first step, rather than having to design and implementation, as well as an want to export. We also do a lot of work as it make these adjustments later. extensive range of analytical systems. In addition relates to labelling for companies who export to international recognition by regulatory to the EU, USA and Canada. Above all, We have also come to realize that although bodies such as the United States Food and Drug Technological Solutions focuses on building we focus on the technical side of the Administration (FDA), TSL is the only company permanent capacity within regional firms to be business, this alone is not sufficient. So in the CARIFORUM region that implemented able to manage both the technical and business typically, we work with companies to help Hazard Analysis and Critical Control Points related aspects of operations. them understand their business objectives, (HACCP) systems that have been approved by the markets to which they want to export the US and the European Union (EU). Now Has your company partnered with any their products, the markets within which in its 18th year of operation, TSL has clients in firms regionally or internationally as they are most competitive, and then use the Caribbean, Africa, Canada, Europe, Latin part of your operations? that information to help guide them in America, and the US. their decision making, because all of these In 1997, TSL was selected by Caribbean Export factors affect the type of labelling, packaging, Caribbean Export OUTLOOK sat down to introduce the concept of Food Safety across ingredients and shelf life that is required. recently with Managing Director and Principal the region, which significantly helped us in Consultant Dr André Gordon to discuss the expanding our business outside of Jamaica. Most of the issues that people deal with ability of the regional agro-processing and We introduced people to good manufacturing last, we like to examine first, and then manufacturing sector to meet international practices, certifications such as HACCP, work backwards. A lot of companies have a food safety requirements. Dr Gordon has and other systems and requirements that product and then try to sell it. What we do over 25 years of experience in the African, were coming on stream globally. Outside of is start by having the company identify the Caribbean and Pacific Group of States Caribbean Export, we partner with the various specific markets for their products, and work (ACP) in conducting audits, implementing Bureaus of Standards across the region. Our back from there. But, if you already have a systems and training, and designing layouts associates are based in the OECS, Suriname, product we try to identify the markets that for food production facilities, as well as Trinidad and Tobago, and Europe. are best suited to your product, and then we providing consultation to companies seeking tailor the technical support that is required validation and/or certification of their systems In Europe, we have worked with Landell Mills for firms to gain entry into those markets. to regulatory and other industry driven of the UK, Sociedade Portuguesa de Inovação standards. He is recognized by the Europe- from Portugal, as well as entities in France In addition to poorly designed facilities, Africa-Caribbean-Pacific Liaison Committee, and Brussels. We also have a very important what are some of the greatest challenges Guelph Food Technology Centre, and FDA and partnership with Guelph Food Technology that regional firms are facing in meeting is a Royal Institute of Public Health certified Centre in Canada, on whose behalf we these food safety requirements? trainer in various aspects of food processing conduct certification audits, as well as training; and food safety. Dr Gordon has extensive and more recently with the US-based NSF The ability to have good manufacturing experience in standards development, International, one of the largest certification practices (GMP) systems in place is a huge conformity assessment, analytical services bodies in the world, on whose behalf we also challenge. This is something we urge companies development and delivery and standards-based conduct audits, to make sure that Caribbean to focus on first, and then seek certification for organization development. businesses have cutting-edge knowledge and the programme. In order to gain any other type the same kind of access as international firms. of certification, firms are first required to have Tell us about your company and how this GMP certification in place. This allows you have assisted firms in meeting In your opinion, what are the first steps buyers to be certain that your firm has all of international food safety standards. that a firm must take in order to comply the systems and requirements in place, at least with international food safety standards? at the basic level. This includes pest control, a Technological Solutions Limited is in the proper sanitation programme, staff training, business of helping companies meet all of the One of the major challenges we have seen familiarity with the production environment, requirements for exporting into global markets, with businesses is that the production preventative maintenance and traceability and meaning we provide the technical support for facilities are poorly designed. This costs recall, to name a few. www.carib-export.com 91 Clearing the Hurdles

How would you describe the readiness of Can you elaborate on the other types of food safety and quality systems are additional CARIFORUM agro-processing firms as it assistance that firms may need in order factors requiring familiarity. Training in relates to meeting food safety standards in to meet food safety requirements? labelling is also extremely important, as the international export markets? requirements are constantly changing. The Today, most operations are technologically second largest reason for rejection of exports It is a bit of a dichotomy, as many regional driven, so firms are required to make sure to the US market is improper labelling, and companies are in a very good position to that their staff members are competent, many firms aren’t aware of this until their meet the basic standards for food safety. and not only with general training, but goods are held at the port of entry. Oftentimes we think that because we also that they are trained in the specific are developing countries that we are way areas in which they operate. In addition Can you provide specific examples of behind the more developed ones. This to training and evidence of competence, CARIFORUM firms which have become may be true in general, but there are many firms must have good knowledge of their more competitive and are doing well in producers operating in the markets that we products, and its characteristics, because the export market as a result of complying want to enter, that have their own issues buyers are increasingly asking for this type with international food safety standards? in meeting requirements as well. By and of information. Similarly, firms must also large, several regional exporters would find understand the shelf life of their products, In 2001, the Barbados Investment and themselves meeting the basic requirements and this must be supported by scientific Development Corporation asked TSL to work reasonably comfortably. There are many evidence, including shelf life studies. with local sauce producers to help them get exporters who have very sophisticated into the international markets. We helped the operations, but the issue is the systems Companies also need to be aware of the members of this sector get their products filed, they have in place and the maintenance ingredients, such as allergens, as the wording optimized their operations, implement basic of these systems. of declarations regarding these allergens is GMPs, and trained their staff as part of our also critical. Knowledge of process flows and programme. Following this, between 2001

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and 2008, the exports from the sauce sector 2002, we worked with the companies in that We have also worked with firms that are now quadrupled, and they are now three times what sector to transform their production systems and household names, and have successfully met they were when the process started. implement HACCP, as well as with the industry international requirements. Firms like Grace and the veterinary services division to change Kennedy Limited; LASCO Manufacturing In St Vincent and the Grenadines, we worked the legislation governing the processing of meat, Limited; and Seprod Limited in Jamaica; as with Mountain Tops Springs Limited. The dairy products and seafood, which allowed their well as Solo Beverages Limited; Cannings company had never exported and asked seafood to enter the EU market again. Foods Limited; a former Neal & Massy us to work with them in this regard. We subsidiary; and K.C. Confectionery Limited worked to implement GMPs, improve their We also worked with the canned fruit and in Trinidad and Tobago. The benefits of production flows, and train staff. As a result, vegetable exporters to get Jamaican ackee following the requirements and ensuring these improvements not only led to exports, back into the US market. This required a that the right processes and programmes but also resulted in the staff and firm now transformation of the domestic industry, are in place are immeasurable. being in a better position professionally and changing the regulations, and working closely financially, as sales have grown in excess of with the FDA, with whom we continue A concern, however, is that many firms 10 times. This company successfully changed to have a collaborative relationship today. are implementing systems and gaining its operations and implemented systems that Access to the US market required scientific certification, which is good from a marketing opened up regional and extra-regional export proof that the traditional ackee product was perspective, but they don’t actually meet the markets to their products. safe, and this will be an increasing need as requirements of the market they are seeking to we export our traditional products from the enter. Firms therefore need to access current Another example is the Seafood industry in region. Overall, it was a mammoth effort, but information, understand their needs, and Jamaica, which like other Caribbean countries, it resulted in the exports of that particular budget adequately to make the adjustments, were barred from exporting to the EU, because product increasing from US $4.4 million to as this is all a part of doing business. they didn’t meet market entry requirements. In US $15.2 million over a period of 12 years.

Stephanie Bishop is a Communications Advisor at the Caribbean Export Development Agency. She is a development communications specialist with over 10 years professional experience and holds a Masters in International Affairs. www.carib-export.com 93 Clearing the Hurdles COMPANYcompany to TOlook out for:LOOK OUT FOR: baron foods limited Company Name Major Exporting Achievements Baron Foods (St Lucia) Ltd. One of our major achievements was the attainment of quality certifications. We Website established a comprehensive quality www.baronfoodsltd.com programme through international certifications such as the ISO 22000:2005 Chief Executive Officer and FSSC 22000:2010; these standards have Ronald Ramjattan definitely set us apart in the quality arena. Being quality approved has allowed our All images provided by Baron Foods Limited Years in Existence products to be accepted by major supermarket 22 years chains such as Tesco and Sainsbury’s in the UK. Our product, as is regulated by our quality brand awareness. This ultimately resulted in Location programme, adheres to every aspect of the food increased customer satisfaction and strengthened Vieux-Fort Industrial Estate, regulations of any importing country, simply customer loyalty, which translated into increased St Jude’s Highway, because we have pursued and acquired the repeat purchases, cross-selling of related services, Vieux-Fort, Saint Lucia foremost quality standard globally. and recommendations to others, which is what was needed to build a successful, sustainable Product Summary Another achievement is the use of private export platform. Baron Foods produces over 150 different labelling. We have utilised this as a major export products, which includes spices and an FSSC tool and have seen this contribute considerably Market Entry Strategies 22000:2010 certified product range of exotic to our yearly export percentage. Currently, we Over the years, Baron Foods has gained and gourmet sauces, condiments, essences, are the only Caribbean agro-processor that has mastery in the area of market entry. Foremost, dressings and drink cocktails, packaged in glass penetrated the French island of Martinique detailed research was conducted to find bottles for local and international distribution. utilising private labelling, and we were also foreign markets where our products could be The Baron range caters for every palate and able to secure two separate distributors on the profitably exported, to identify competitors delivers a distinctive taste and aroma. island. We have also been able to successfully and the necessary marketing adjustments employ private labelling to penetrate the that had to be made and possible barriers that Export Market territories of St Thomas, St Martin, Puerto existed in that chosen trade arena. Becoming The Caribbean: Antigua and Barbuda, Rico, and the USA. internationally certified was also part of our Barbados, Haiti, St Vincent and the market entry strategy. Grenadines, Puerto Rico, Guyana, Jamaica, Furthermore, having copped several major Anguilla, Dominica, St. Thomas, Martinique, awards at the 2012 Caribbean Business Awards, Innovativeness is another fundamental Guadeloupe, Tortola, Grenada, and St. Croix namely the Award for Innovation, Manufacturing instrument in Baron Food’s market entry North America: United States and Canada Excellence Award, and Small to Medium Business strategies. Motivated by the increasing Europe: United Kingdom, France, Germany, of the Year Award, we have again demonstrated competition in global markets, our company Spain, and Slovakia. a stellar level of competence as well as raised our has grasped the importance of innovation,

94 www.carib-export.com COMPANY Clearing the Hurdles TO LOOK OUT FOR:

since swiftly changing technologies and severe design, etc. Subsequently, various policies and America and the Dominican Republic global competition rapidly erode the value in procedures have been employed to ensure the and at ANUGA in Germany; existing products and services. reviewing of regulations for the particular • Direct exposure to the EU-CARIFORUM territories that Baron Foods Ltd exports to in EPA agreement. We also formed strategic alliances with an effort to assure the overall compliance of companies in other countries (e.g.) Wanis and our products to exporting countries. Key Support Needed by Exporters Trin- Jam. This has been a major advantage As an exporter in the Caribbean, we believe since it enabled our company to access the Support Received by Caribbean Export that firms require assistance with branding. home market of other companies and thereby Baron Foods (St Lucia) has been a beneficiary Some are suffering from ailments such as market our products as being affiliated with to a few Direct Assistance Grants made the “Who Are We Today?” syndrome and a well-known host company. available by Caribbean Export, which all are in need of brand development support. directly contributed to propelling us into the While few companies in our region can Greatest Exporting Lessons Learnt export arena. These include: provide consistently superior products and Our company has indeed faced some hurdles • The implementation of the project service experiences, the various mechanics when venturing into the export arena. titled “Increasing of Baron Foods Export and techniques in establishing a bond with However, one of the greatest exporting Production Capacity,’’ where our customers are somewhat unfamiliar to some lessons learnt was staying abreast of all company received assistance in setting up companies. Furthermore, the up-front costs that is needed before our products can be a semi-automated processing operation; involved in developing promotional materials, accepted into the various export markets. A • Caribbean Export has also assisted us allocating personnel to travel and other recent experience was making modifications in setting up a HACCP certification administrative costs associated with product to our product labels to reflect the labelling scheme; marketing make brand awareness an expensive parameters of the importing country. A • Caribbean Export’s interventions feat. Assistance in branding to applicable firms complete redesigning of the labels had to have also helped to offset expenses should be a priority. In addition, we also believe be done to reflect changes in the nutritional of participating in trade shows and that firms need assistance in dealing with the analysis, ingredients information, main panel exhibitions abroad such as in North high freight rates of shipping companies.

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building the bridge to mutual recognition of Caribbean professionals BY ANDREA M. EWART

To facilitate the cross-border movement of These challenges are addressed through mutual mechanism for mutual recognition, the EPA goods, countries negotiate agreements that lower recognition. Mutual recognition of professional commitments for the movement of service the tariffs and non-tariff requirements that can qualifications allows the qualifications held by a professionals will be difficult to realise. prevent or obstruct the smooth flow of goods professional to be recognised in the country in across their respective borders. Conversely, which he or she is seeking to practise, removing The EPA on Negotiating MRAs facilitating the cross-border movement of the necessity for re-qualification. Market access commitments for the entry people, particularly professionals, can be more of CARIFORUM professionals into the challenging. For the most part, mutual recognition of EU markets, and vice versa, are contained professional qualifications is accomplished in Title II of the CARIFORUM-EU EPA. The receiving country wants to be able to ensure through the negotiation of Mutual Recognition Article 85 of the EPA provides a mechanism that the doctor, engineer, or architect wishing Agreements (MRAs). As an agreement between for negotiation of MRAs. to offer his or her services within its borders is the European Union (EU), on the one hand, and adequately qualified. On the other hand, the the Forum of the Caribbean Group of African, Article 85 on Mutual Recognition first sending country wants to ensure that its nurses, Caribbean and Pacific States (CARIFORUM) stipulates that each receiving country has the accountants, and other professionals, who have countries on the other, it was essential that the right to require that incoming persons hold already trained and earned their professional services commitment of the CARIFORUM- the same professional qualifications and/ qualifications, are not going to be required to EU Economic Partnership Agreement (EPA) or experience that is necessary for national pursue additional years of schooling before contain provisions for mutual recognition of professionals. Accordingly, it charges the being able to practise. professional qualifications. Without an effective parties to the Agreement with encouraging

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the professional bodies to work with their be cleared on the path to negotiating MRAs. of MRAs will include both approaches and counterparts, i.e. CARIFORUM with EU, Most importantly, the MRA negotiation incorporate recognition of the equivalence of to develop recommendations for the mutual process will require professional associations existing professional qualifications as well as recognition of qualifications within their in CARIFORUM and the EU to reach of the sending country’s authority to certify respective fields. Once developed, the an agreement on each other’s criteria for the training and to grant diplomas. recommendations are to be presented to the authorising the operation of their professional CARIFORUM-EU Trade and Development members on their respective territories. Equivalence Committee. The Committee will determine At the heart of all these approaches is the whether: (i) the recommendation is Negotiating MRAs search for equivalence, meaning to what consistent with the EPA; and (ii) the There will be no “one size fits all” approach extent do the degrees and other academic regulatory environments of the relevant to negotiating the MRAs. Depending on the qualifications in the respective territories EU and CARIFORUM States are compatible profession, an agreement may need to be mean more or less the same thing. enough to conclude an MRA. Only then can reached on such substantive requirements an agreement for mutual recognition of as professional qualifications, course studies For example, a study of the engineering “requirements, qualifications, licences and and licensing examinations. An alternative professions in CARIFORUM and EU other regulations” be concluded. approach focuses on conformity assessment countries would assess such factors as: procedures, such as examinations and the • How many years of study does it take The language of Article 85 provides some process by which the examining/certifying to become an engineer in each country? indication of the hurdles that will need to bodies are themselves certified. A number • How are the training institutions

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certified or accredited? restraint on the professional’s ability to work • Absence of professional indemnity • Training requirements and compulsory in the receiving country. coverage and of continuing education competencies. requirements; and • Was work experience required? Regulatory Environment • Absence of an authoritative • What does it mean to be an “engineer” As Article 85 of the EPA makes clear, a key CARIFORUM accrediting agency and in each country? factor in being able to successfully conclude an professional association. MRA will be the extent to which the regulatory Other Requirements environments converge. To what extent is the Intra-Regional Mobility Once equivalence is determined, the MRA profession regulated in each region, through Both the EU and the Caribbean Community may also address other requirements. These licensing or registration requirements? member states of the CARIFORUM grouping could include compensation measures, such as More importantly, to the extent there are have determined to create regional markets additional professional or practical experience, regulatory requirements, to what degree are for the provision of services. Furthermore, the or an examination, to address determined gaps they enforced? Only those persons who meet regional preference clause of the EPA requires in education and training. There may also be the required standards should be allowed to that the CARIFORUM states extend to each local knowledge requirements, such as language, practice that given profession and there need other any benefits they have extended to the cultural norms, and professional practices. to be mechanisms for finding, sanctioning EU parties. As a practical matter, therefore, However, these local knowledge requirements and excluding violators. For some professions the degree of mobility that exists within each can be used as a means of excluding foreign within the CARIFORUM countries, this region for the respective professions is going professionals and need to be assessed carefully. requirement could provide a challenge. Areas to be a determining factor in negotiating While it could be quite reasonable to require the of weakness may include: MRAs. This may entail that, as they negotiate foreign professional to have a working knowledge • Lack of legal or regulatory framework in an MRA with their EU counterpart, some of the country’s language, mandatory residency some States; professions within CARIFORUM states first, requirements in order to obtain the required • Lack of capacity for administration and or simultaneously, negotiate their own MRA licence almost always function as a disguised enforcement in some States; to facilitate mobility within CARIFORUM.

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In general, two basic approaches can be Furthermore, the Dominican Republic needs Time is of the Essence identified for using MRAs to facilitate intra- to be incorporated into this process. When the EPA was concluded in 2008, the regional mobility of professionals. One approach inclusion of a services component in a trade achieves automatic recognition of professional Selective Approach to the agreement was still a relative novelty. Since qualifications through the harmonisation on a EU Market then, the EU has concluded comprehensive profession-by-profession basis of the education Given the hurdles to be cleared, an important agreements containing services provisions and training requirements across countries. first step will be for the respective professional with several countries, including The second approach avoids any attempt at associations to investigate the potential to Colombia, Peru, and Singapore. In 2013, harmonisation and relies on determining capitalise on an MRA, once it has been signed. the Transatlantic Trade and Investment equivalence. After attempting harmonisation, This process can begin with identifying and Partnership negotiations were launched the EU abandoned this effort to rely on broad reaching out to potential professional partners with its biggest trading partner, the United guidelines by which each receiving EU member with which to initiate discussions towards an States. Multilateral negotiations toward state determines the professional qualifications MRA. With 27 EU Member States from which an International Services Agreement have that are required for practice by a given to choose, it also involves identifying priority EU also been launched. These developments profession and against which it reviews the countries with which to begin work. Pertinent promise to erode the comparative advantage qualifications of a professional from a sending factors in making this determination include: that the EPA provided CARIFORUM States country. Compensation measures may be • How open is the profession to doing with respect to access to the EU services used to address a significant gap between the business with foreign professionals? market. Despite these challenges, the requirements of the receiving country and those • Is this reflected in their regulatory regime? successful negotiation of an MRA between of the sending country. • What are available or potential market a specified professional grouping of opportunities for partnering or for CARIFORUM and the EU continues to hold An effective regime to address mobility of specializing? significant promise for the CARIFORUM professional qualifications within the CARICOM • Are there cultural and/or language professional. Single Market has not as yet been established. affinities?

Andrea Ewart is a Jamaican national and US-trained customs and International Trade attorney who also consults for Caribbean businesses and governments on World Trade Organization (WTO), Caribbean Single Market & Economy (CSME), U.S.-Caribbean trade relations, trade negotiations, and other trade issues. www.carib-export.com 99 Clearing the Hurdles attracting investment to enhance trade BY SUZETTE HUDSON

Image provided by Grand Bahama Port Authority Limited

It is amazing how the eyes of the world are endowments, with the tourism industry And the Caribbean has had to swallow many constantly drawn to the 7,000 islands, islets being one of its strongest investment a bitter pill because of its heavy dependence and cays of the Caribbean archipelago—small opportunities. on the tourism sector. economies, in terms of population size and GDP growth, but whose athletes are the But tourism remains the region’s ‘Achilles’ Efforts to position other sectors as viable best in the world, whose musical giants span heel’ as within this strength lies one of the investment opportunities remain hamstrung generations and whose cuisine tantalizes. foremost challenges that has been at the by this perception and the limited resources core of the development malaise in the available to position the region for other The renowned beauty of the Caribbean Caribbean— a perception of the region as investment opportunities. In the wake of and its people makes the region a mecca for not necessarily being the place for doing the latest global recession, investors have tourism. The region has capitalized on these business, besides tourism or related services. been slow to take notice of the Caribbean,

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the East Coast and permitting large retailers and manufacturers to reconfigure their network of factories and distribution centers so that more inventory can be stored closer to East Coast population centres.

This development presents an opportunity for the Caribbean to take advantage of its strategic positioning in terms of north- south and east-west trade and the natural endowments of several deep water ports in the region. This will allow the region’s ports, suitably outfitted, to serve as logistic centres and transshipment hubs for the increased cargo expected to pass through the region. There has been some jostling in the Caribbean to capitalize on the increased business that will move through the Canal after the Post-Panamax locks have been opened in 2015. Jamaica and the Dominican Republic (DR) are among the frontrunners.

For Jamaica, the vision is the transformation of its natural harbour in Kingston into a transshipment and air cargo logistics hub for the Americas, a strategic handling point for bulk commodities and a centre for aviation- related maintenance, repair and overhaul as well as ship repair and dry docking. The Jamaica Logistics Hub Initiative is already underway with the mobilization of several cornerstone or support projects including the Caymanas Special Economic Zone (CEZ) development where the Jamaican Government is set to develop 10,000 acres of the Caymanas Estate lands for purposes directly related to the Initiative such as logistical planning and warehousing.

It is expected that a significant economic stimulus will be generated from the construction activities related to the particularly given an increased competition development of logistics and transshipment logistics hub, with jobs created in areas for scarce foreign investment. hubs and the Caracol Industrial Park in Haiti. such as mechatronics integration of marine engineering (mechanical, electrical and But the tides may be turning. Recently, the buzz in the Caribbean has informatics), ship board professions such been the widening of the Panama Canal as electromechanical engineering, port There are regional developments that present to allow for the passage of a new class of operations management, heavy duty opportunities to position the Caribbean in supersized cargo ships, known as Post equipment operations, logistics and supply sectors other than tourism, diversifying Panamax ships, which are more than twice chain management. the region’s investment offerings. There as big as the historical cargo shipping fleet. are projects underway in Jamaica and The expanded Canal is expected to open in The Government of Jamaica is also in the the Dominican Republic for the planned 2015, allowing for lower cost shipments to process of setting up a Global Financial

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All images provided by The Port Authority of Jamaica

Hub to complement the Logistics Hub as airports, four cruise ports and 12 modern also considering improvements. And the it recognizes that goods have to be paid cargo ports, including the Dubai Ports significant investment which would follow for with investments grounded in sound operated Caucedo Multimodal Port, which this kind of opportunity could transform vehicles. The investment promotion agency is one of the 25 largest ports in the world. the face of Caribbean economies over the (IPA), Jamaican Promotions Corporation next decade, positioning the region for even (JAMPRO), has been mobilized and is The DR “Hub of the Caribbean” project greater investment flows. engaging investors for investment in the envisages the implementation of a strategy multi-faceted project. which includes the development of port and The DR and Jamaican Governments have maritime infrastructure, financial free zones, already indicated significant interest from The DR is also engaging investors for its tourism, shipping and air connectivity. investors in advancing these plans and, transshipment and logistics initiative which Dubai Ports is already attracting shipping indeed, the air is thick with the anticipation seeks to position the country as the “Hub of lines to transship through the DR port, of a brighter future, not just for the countries the Caribbean.” The DR’s preparation for the which is strategically located near the Las implementing these plans but for the region Panama Canal’s expansion is founded on a Americas International Airport, with a as a whole which stands to benefit from the historical opportunity, which dates back to capacity to handle 1,300 ships a year. spill-over effects. the Discovery of the Americas. The Canal has been a point where imports and exports These are only two of the national Also attracting the attention of investors converged, not only with the Old and the New initiatives underway in the Caribbean is the Caracol Industrial Park in Haiti. World, but also linking the Old World with that would position the region in the The project includes the construction of Central America and South America. This transshipment and logistics sector. That an industrial park of 250 hectares with an historical advantage is being strengthened by means the Caribbean would be taking investment of US $280 million. The full- the government’s support of the initiative advantage of “the biggest shift in the freight service industrial park will entail state-of- with the benchmarking of DR ports with the business since the 1950s,” according to The the-art waste water treatment facilities and best ports in the world already undertaken. New York Times (December 2010). This modern industrial buildings in the northern The local IPA, the Center for Investment and opportunity has not been lost on other part of the country, at Caracol. The project Export for the Dominican Republic (CEI-RD) countries in the region, namely Trinidad is a partnership between the Government is taking a lead in positioning the country’s and Tobago and the Bahamas, where the of Haiti, the United States Government, excellent system of roads, nine international ports in Port of Spain and Freeport are the Inter-American Development Bank and

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the South Korean textile companies SAE-A similar enterprises in China and Central in Martinique and Guadeloupe. Additional and will be the largest and most modern America. The near-shore advantage of Haiti untapped reservoirs exist in the north and industrial park in the Western Caribbean added to the duty free benefits and the more south of the island. In Barbados and Nevis, and Latin America. The anchor investor, flexible sourcing rules under the HELP and there are plans for waste-to-energy plants and SEA-A, is establishing a state-of-the-art HOPE II Acts for Haitian exports into the there have been expansions in wind farms in apparel manufacturing complex that is US market, gives an added attraction to the Curacao, Jamaica and the DR. vertically integrated to include on site fabric manufacturing of textiles in that Caribbean mills, printing and embroidery facilities. country. For Haiti, the creation of much- Connectivity is being aggressively addressed Considerable investment will be made to needed jobs will be the greatest economic with the development of a new airport in upgrade the infrastructure within that part impact for a country with an estimated St Vincent and the Grenadines, the Argyle of Haiti, including accessible roads, a new unemployment rate of 40% in 2010. International Airport, and Caribbean’s port facility, supply of electricity and the first airport city or aerotropolis (a planned construction of homes. The initial phase of Other investor-friendly developments include development in which a city-like site the project includes 350.000 m2 of covered the region’s push to reduce the high cost of and commercial centre grow around industrial space, of which 120.000 m2 will energy. Grenada, for example, is targeting an airport), at the Piarco AeroPark in be made available for lease. By December investments in the green economy, partnering Trinidad and Tobago. And then there is 2013, five companies had already occupied with Sir Richard Branson’s Carbon War the Royal Caribbean International Port spaces at the Park specializing in apparel Room to court investors and finalize a road Castries Project which will be undertaken manufacturing, paint production and map focused on improving the regulatory by the second largest cruise line operating construction and more than 2,500 direct environment, energy efficiency in government in the Caribbean, the Royal Caribbean jobs have been created in 2013 as a result of buildings and infrastructure and affordable International (RCI). the initiative. green energy services for major users in the private sector. Dominica has been exploring Niche sector developments are also taking place Haiti is strategically positioning the Industrial geothermal energy with the drilling of two in offshore education, with the expansion of Park for the garment/textile industry, a sector full size wells for a 15MW geothermal power the St George’s University School of Medicine in which it had an advantage in years gone by, plant which is projected to be completed by in Grenada and the space tourism programme an advantage that still remains, with wages the end of 2015. The proposed supply is in Curacao, with XCOR Aerospace to begin at about 30% and 50% the cost of those in for local consumption and export markets operational flights from Curacao in 2014.

Suzette Hudson is the Senior Advisor, Investment Promotion at Caribbean Export. She has direct responsibility for managing all matters related to the Agency’s role as the Secretariat for the Caribbean Association for Investment Promotion Agencies (CAIPA) and the development and implementation of the Regional Investment Promotion Strategy and Implementation Plan for CARIFORUM. www.carib-export.com 103 exporters’ insights Exporters’ Insights the story of sandals: life’s a beach and ready for business BY STEPHANIE BISHOP

For over three decades the name Sandals the Caribbean dream, an art he fostered for nearly refrigerators, freezers and other appliances. Today, has been globally recognized as an epitome eight years including several as a salesman at the the company produces and trades everything of world-class luxury and excellence. As a Dutch-owned Curacao Trading Company and, from automobile parts to water pumps. leader in the Caribbean ultra all-inclusive before that, a spell studying in England. Then in industry, the resort is well positioned to stay 1968, he started his first company, Appliance In 1981, ATL provided the capital required at the forefront of this market because of its Traders Limited (ATL), and within less than to acquire and renovate a rundown hotel in rich history and optimistic outlook. two years became the leading distributor of air- Montego Bay, Jamaica. Seven months and US conditioning units in Jamaica. $4 million in renovations later, the country’s first The mastermind behind the masterpiece is Sandals Resort opened. the illustrious Gordon “Butch’’ Stewart, and “We were number one within 18 months and this like his own life story, the genesis of Sandals was just the beginning, where everything came Success, however, was not automatic. Most of the Resorts is unprecedented. from,” recounted Stewart. major tour operators already had exclusive deals with some of his competitors, and because of the Selling the Caribbean Dream The air-conditioner service and distribution resort’s close proximity to the airport (Sangster Stewart has successfully made his fortune selling company quickly mushroomed, adding International), guests complained about the

All images provided by Sandals Resorts International

106 www.carib-export.com Exporters’ Insights noise. Further, the business was too small to break even.

“We had a lot of enthusiasm, but we didn’t know what we were doing. We lost a lot of money for a couple of years, and if you lose money in the hotel business you lose a lot of money.”

Sandals eventually gained traction in the 1980s consumer boom.

“It was the era of President Reagan and Prime Minister Thatcher and I rode the wave.”

Even with the economic malaise afflicting consumers and the competition, there was solace at the heart of Sandals Resorts.

“In a crisis, the inexpensive stuff sells. The middle stuff is under pressure. But the top market does business.”

Early Expansion A decade after transforming the sublime shoreline of the Jamaica north coast with five Sandals Resorts, Stewart expanded his brand to Antigua and Barbuda.

“Antigua was really the only island aside from in conquering these challenges. Jamaica with which I had any experience. I used to visit for a couple of days at a time to unwind “There are mistakes. When you go into and I loved it. The Anchorage Hotel with its business, from my experience, it’s never 99 rooms was for sale so we bought it, added quite what you think it is. There are always another 50 rooms, and the rest is history.” surprises. It’s the cost of experience, the cost of learning, the cost of growth.” Following Antigua, the all-inclusive brand has opened in Saint Lucia, Bahamas, Barbados, and Exceeding Expectations Grenada. From inception, Sandals Resorts has earned just about every award and accolade in the “There are certain things we look for when industry. And with the likes of competitors expanding such as the overall quality of the such as Club Méditerranée (Club Med) country and its beaches. Does it have a stable, and the Hilton Hotels, this continues to be democratic government? Does it have a low a tremendous feat. crime rate? There is a multitude of different aspects that need to align. Plus of course there’s “The competitive advantage of Sandals is the the human factor too. I’m a very emotional uniqueness of the brand. What differentiates person and if I’m not personally in love with us from another all-inclusive is the influence the place, I find it difficult to sell out in the of luxury in every aspect of the resort marketplace. I love every country we operate in.” experience, hence the introduction of the Luxury Included® concept in 2007. At Conquering Challenges its core, this concept was introduced as a The astute entrepreneur believes that in commitment to exceed expectations with business, there will always be mistakes. A real and tangible points of distinction that sense of accomplishment comes, however, customers could experience and that our www.carib-export.comwww.carib-export.com 107 Exporters’ Insights

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partners could articulate and market with Corporate Social Responsibility confidence.” As a result of his entrepreneurial exploits, Stewart has successfully spearheaded over The family-owned company transformed itself two dozen companies that are collectively from a single resort in Jamaica to one of the Jamaica’s largest private sector group, and most recognized award-winning hospitality the country’s biggest foreign exchange brands in the world. With over 12,000 earner. Similar patterns of growth are also employees and two new hotels in Barbados and evident in the economic impact of his Grenada, Sandals Resorts are but jewels in the business throughout the region. crown of the “King of All-Inclusive Resorts.’’ Through the philanthropic arm, The Sandals In the beginning, Stewart had no hotel Foundation, the company provides active experience, but he approached business support to more than 150 major projects in with a simple philosophy: “The winning its host communities. This support ranges formula is to find out what people want, from the building of schools to providing give it to them and, in doing so, exceed their access to healthcare. expectations.” “The Sandals Foundation represents a way Today, under the Sandals Resorts International for Sandals and Beaches to give back to umbrella, Stewart has established 24 our community through initiatives that properties in seven countries. In addition support, uplift and improve the lives of to Sandals Resorts, the four other premium the Caribbean people. It is our way of brands include Beaches Resorts, Grand better enabling us to take on more of what Pineapple Beach Resorts, Fowl Cay Resort needs to be done in the islands where we and The Private Villas Collection. operate.”

“What would I tell someone who is looking to Stewart’s philosophies about life are reflected expand? Give it your all. Find your market, pick not only in his company’s approach to your staff well and give good direction. Pick your corporate social responsibility, but also in the country wisely because some welcome you with way he conducts business, an underpinning open arms, while others see you as an intruder.” that augurs well for any venture.

Company Profile Sandals Resorts is an operator of all-inclusive resorts in the Caribbean and a part of Sandals Resorts International (SRI), parent company Beaches Resort, Grand Pineapple Beach Resorts, Fowl Cay Resort and several private villas. Sandals Resorts has 15 properties located in six Caribbean islands: Antigua, Bahamas, Barbados, Grenada, Jamaica, and Saint Lucia. For additional information visit: www.sandals.com.

Sandals Resorts Properties Jamaica Bahamas Sandals Montego Bay Sandals Royal Bahamian Spa Resort & Sandals Royal Caribbean Resort & Private Island Offshore Island Sandals Grande Riviera Beach & Villa Golf Resort Sandals Emerald Bay Great Exuma Sandals Negril Beach Resort & Spa Sandals Whitehouse European Village & Spa Grenada Sandals Royal Plantation Ocho Rios Sandals LaSource Grenada Resort & Spa Sandals Carlyle Montego Bay Grenada

Antigua Saint Lucia Sandals Grande Antigua Resort & Spa Sandals Grande Saint Lucian Spa & Beach Resort Barbados Sandals La Toc Golf Resort & Spa Sandals Barbados Resort Sandals Halcyon Beach

www.carib-export.comwww.carib-export.com 109 Exporters’ Insights driving success: the automotive art strategy for growth & sustainability BY STEPHANIE BISHOP

All images provided by Automotive Art

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Mention the name Dereck Foster, and most years of entering the automotive paint entrepreneurs encounter comes from a people will associate him with leadership, business in Barbados, Automotive Art had logistical viewport, namely regional ports, success and innovation. These attributes are only one competitor remaining. customs and air transportation. also synonymous with the company he co- founded, Automotive Art. “When we started there were over 10 paint “We live in small countries, yet want to have stores in Barbados, but many of them never some of the most draconian rules in the Armed with more than 10 years’ experience in capitalized on the market opportunities that world, which then becomes a deterrent to the automotive paint business and the desire were available. Today there are still a few manufacturers. Instead of helping countries to revolutionize the industry in Barbados, players in the market, but Automotive Art with the ability to move goods, regionally and Foster, and his business partner Hugh Blades holds a dominant share.” internationally, we are actually harming them.” established what has become the Caribbean’s largest auto-care retailer of car enhancement Export-driven Though the company successfully conquered products and services. Automotive Art commenced operations in the English-speaking Caribbean, the same Barbados in 1990 and began exporting two could not be said for the rest of the region. A well-oiled machine years later. The company was able to transform Automotive Art was restricted to the English- In order to be differentiated from the the face of the auto care industry in the island speaking Caribbean because their German competition, Automotive Art had to be within record time, and saw the opportunity supplier already had distribution in the Latin revolutionary. to do the same in other Caribbean territories, American and French-speaking territories. beginning with Dominica. This meant finding a new supplier that could “I saw that the industry was changing, provide similar quality without the restrictions. particularly with the introduction of new “In order to expand across the region, we high-tech paint systems,” Dereck explained. needed to find the right partners. Harris In addition to finding a new supplier, the “I believed that there was an opportunity to Paints was an investor in Automotive Art and company recognised that there was a need change the industry in Barbados by embracing they had a factory on the ground in Dominica, to develop its own brand, the Automotive this new technology.” so it made good business sense.” Art brand. This was achieved with a Dutch supplier, who not only facilitated access The Automotive Art revolution meant With expansion outside of CARICOM throughout the remaining territories, but transforming the environment in which paint came the realisation that the company also later opened the door to the United States was being sold. could not manufacture in Barbados and market. This progress however was short-lived. still be competitive. This component was “The automotive paint business, as it was therefore outsourced to a European firm and “Shortly after starting our US expansion, then, was a ‘dirty business’. Everything was a distribution centre was established in Miami our Dutch supplier was bought out by a covered in paint droplets, from the counter to facilitate logistics. multibillion-dollar American paint company, to the customer. Everything and everyone who immediately informed us that they were was covered in paint and that had to change.” “From there (Miami), we started to export going to break our contract, and while they to Latin America. Every country has its own were happy to continue to supply us for What followed was a clean, professional- strengths. For Barbados, manufacturing goods Caribbean and Latin America, we would not looking store with a supermarket-type format, for export, other than niche products like rum, be able to sell in North America.” where products were on shelves and fully is not it. Services and knowledge on the other accessible to customers. The company also hand is where we can be globally competitive.” While this development proved perplexing, invested in state-of-the-art computerized with research, insight and the right approach, colour-mixing equipment, which allowed it Today, the aftermarket franchise chain and the Automotive Art team secured a new to produce every car colour on the market. distribution company operates stores in nine supplier from Poland, two years later, to The next step was staff development. countries and sells products in 62 countries facilitate their strategy. around the world through operations in the “We trained our staff in how to use the USA and Poland. Automotive Art also exports One of the Polish owners eventually sold products. This allowed them to produce knowledge from the Barbados operations, via his shares to Automotive Art, which led to better results for our customers, dramatically a franchise system and head office functions. its acquisition of 50% stake in the factory. improving efficiency, and ultimately This procurement completed the chain from increasing productivity and lowering costs, Navigating the challenges production to sales, and heralded a new which resulted in excellent profitability.” Automotive Art faced many challenges in direction for the company. exporting regionally, but Foster pointed out The results were undeniable. Within three that one of the biggest trials that Caribbean “Now we can take on the world and no one

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can tell us where to go. We have already worth to the Automotive Art brand. company hardly needs to introduce itself. started selling in North America, and while In your industry, people will already challenging we are making headway.” “I remember having this conversation with a know your business, its personality, very successful business person in Barbados, and the promise you make to customers Keys to Success and when I told him the effort that our is cemented in their experience when Dereck Foster defines success as a desire to be management spent on training, he asked me doing business with you.’’ the best, and with this comes the attainment how we could spend so much on employees of wealth, favour or eminence. and then they leave. I told him, imagine what 2. Make sure your company is built would happen if we didn’t [invest in their to last. Leaders in companies have “The keys to success for Automotive Art are training] and they stayed!” to make decisions daily that could recruiting good people, and more importantly produce short-term gains, but have dire keeping them. Our team is passionate about In addition to a great team, Foster believes that consequences for the long-term health the industry and our company. This translates there are five essential elements that contribute of the company. At Automotive Art, into a good experience for our customers, to the company’s achievements in export: the desire is to see the company grow investors and business partners.” 1. A great brand is critical to success. It and prosper long after the founders defines you and it is of vital importance have moved on. Foster added that there is an infinite value that you nurture it, care for it and protect in the staff being knowledgeable about it. Your brand is your reputation. “I read a great book that speaks about the company’s products and the services the difference between companies that provided. This expertise adds immeasurable “With a well-managed brand, your adopt a built-to-last culture—it really

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brought it home to me. The book is “I do not believe in protection. I believe in called Built to Last, by Jim Collins and the free market, that’s how nature operates. Jerry Porras, and I would like to suggest If you do something well, you get rewarded, that every leader hoping to build a great if you handle your business poorly you organization read this book.” close down. Regional governments tend to listen to individuals as opposed to sectors 3. Continue to innovate. As the only collectively, but this hinders export potential Company Profile automotive aftermarket business in the as opposed to helping the process. This builds Automotive Art directly employs over 200 Caribbean, and one of the few in the inefficiency not exports. There is too much persons in company-operated business; these world, that has paint as one of its core protectionism.” include franchise locations and distribution business categories, Automotive Art points. Products include: accessories, batteries, consistently redefines its approach to There is also the view that governments need paints, tyres, tools and wheels. For more business, from introducing the first air- to focus on the industries in which they can information visit www.automotiveart.com. conditioned customer waiting rooms to be globally competitive, taking a “think global- creating an ultramodern storefront by act local approach.’’ Franchise locations: global standards. Antigua and Barbuda • Barbados • Cayman The road ahead Islands • Guyana • Jamaica • St Kitts and Nevis “We completely changed the automotive “The future for Automotive Art is bright, • Saint Lucia • Suriname • Turks and Caicos business, and we were one of the first and because of our team, I believe that any companies to brand everything—our challenges we face now or in the future will Distribution Partners: building, vehicles, and staff uniforms. not be insurmountable,” Foster said. Caribbean and Americas More importantly, we are one of the Aruba • Bahamas • Belize • Bermuda • few paint companies in the world that The company is currently focused on the Canada • Dominica • Dominican Republic has everything under one brand for Americas [Caribbean, Latin America and French Guiana • Grenada • Nicaragua refinishing a car from body filler to North America], and the team in Poland is Montserrat • Puerto Rico • St Maarten clear coat, and everything in between. focused on Europe but the next big market is St Vincent and the Grenadines • Tortola Innovation keeps us ahead of the Africa, starting in South Africa as one of the • Trinidad and Tobago • United States of competition.” continent’s biggest economies. America

4. Undertake comprehensive market “Our intention for our company is to be Africa research. This will help in identifying everywhere. We won’t turn down a customer, Botswana • Morocco • South Africa the right target market, competitors, regardless of where they are from. In fact we customers, distribution channels and the are speaking with a customer from Egypt in Asia best approach for product promotion. spite of the current problems that country is Bahrain • Bangladesh • Iraq • Israel • currently experiencing, so the possibilities Pakistan • Saudi Arabia • United Arab “Ensure you do your research on the are endless.” Emirates market you plan to enter, make sure your products are competitive, identify Foster also believes there is one more big Europe the competitors you are targeting, their thing the Caribbean should be exporting— Belarus • Bulgaria • CEZET - Netherlands, strategy and how they are marketing in our lifestyle. Belgium, Luxemburg • Czech Republic • that country.” Croatia • Germany • Estonia • Finland “The Caribbean has a great climate, we are • Hungary • Ireland • Italy • Latvia • 5. Find the right partners. Partners that fantastically located half-way between the Lithuania • Malta • Norway • Portugal • are committed, and share the company’s US and Latin America, and most countries Romania • Russia • Sweden • Slovakia • vision and the team’s passion are are independent and relatively stable. We Spain • United Kingdom • Ukraine paramount. can be the headquarters for some of the biggest organizations on the planet and the Pacific However, businesses cannot succeed without home to some of the world’s most pioneering Australia the right infrastructure and support. Foster entrepreneurs, because people want to live believes that governments can do more in this environment. But we need to have the to facilitate exports by “staying out of the infrastructure that supports the knowledge, Stephanie Bishop is a Communications Advisor way of exporters and not pampering to the investment, and innovation that these at the Caribbean Export Development Agency. business communities that say they need companies and entrepreneurs will bring to She is a development communications specialist with over 10 years professional experience and more protection.” our region.” holds a Masters in International Affairs.

www.carib-export.comwww.carib-export.com 113 Exporters’ Insights recipe for success: rainforest seafoods on serving the region BY STEPHANIE BISHOP

Jamaican home-grown company is region’s largest supplier of premium seafood. Here’s how how they did it.

All images provided by Rainforest Seafoods

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In just over 18 years, Brian Jardim took what Conquering Competition southeast of the US for distribution along began as “dabbling in fish brokerage from and Challenges the continent’s eastern seaboard. Guyana to Jamaica” and turned it into the Rainforest Seafoods is dominant in its Caribbean’s largest supplier of premium field, but competitors within the islands Today approximately 20% of their sales comes quality fish and seafood. are mainly broad line wholesalers or from exports and a target of 50 per cent has distributors who carry seafood as one item been set for the next three years. The journey started in 1995 and Jardim’s in their portfolio, along with beef, chicken, motivation was to fill the need in the hotel lamb et cetera. “Our advantage is that we are “In order to meet this target, we have industry where he had been working for more specialized and we have found the niches expanded our product portfolio to include than 10 years. in our business, but there will always be value-added products, which should push us people selling what we have, so we just have into new and exciting territories.” The ability to seafood differently to sell it better.” “It became pretty apparent that most travellers A major aspect of the company’s export plans to the region came for the full Caribbean The business has its challenges. “Our business includes breaking into the European market. experience,’’ Jardim explained. “In addition is very seasonal, so the capital demands are “We already have our US Department of to sun, sea and sand, they assumed that we extremely seasonal. There is a time of year Agriculture certification and have exceeded had bountiful and endless seafood in our when we buy, and time of year when we sell. the Food and Drug Administration’s Hazard offerings, but honestly many of the islands Many times there was a mismatch, so that was Analysis and Critical Control Point guidelines were fished out. And at that time, Jamaica was probably one of our biggest challenges in the which has allowed us to start our first exports trading between the islands to meet their fish early days, finding capital we needed to meet to the US from Jamaica. But Europe is in and seafood demands, because no one island our demand to supply.” our sights so we are working on gaining EU was self-sufficient.” certification. We are also hoping to get into The ability to earn foreign currency and net Asia with some of our products in 2014.” Jardim realized there was a niche within the income as an entrepreneur goes a long way in hotel industry to provide quality seafood and securing investment and capital, Jardim said. Recipe for Success premium prices, so together with business “Your ideas exceed your wallet most times, so Jardim said that the company’s single biggest partner Ian Dear, he bought an old restaurant on you have to start with the financial institutions strength and reason for success is its outstanding Montego Bay’s famous “Hip Strip’’ and restored to sell your idea. However, the fact that we were team. “Coming from a dozen to nearly 350-plus the site into Marguerites, a premier dining spot earning US dollars from a very early stage was with a shared vision is a big part of our success. specializing in seafood. The pair then built the very helpful in the financing process.” We are still a young company and there is no now famous Margaritaville next door on the room for bureaucracy. Everyone has access and adjoining land, which mushroomed into the Hooked on Exports the opportunity to bring their ideas forward.” most successful chain of restaurants and clubs Since selling his interest in Margaritaville in on Jamaica’s sandy shoreline. 2010, Jardim has been able to concentrate 100 But success does not come without hard work per cent on expanding Rainforest Seafoods. and dedication. “We were knocking on doors “I saw an opportunity and I ran with it. In for a long time, but we were dedicated to our addition to brokering to hotels and resorts In Jamaica, that expansion has lead to 15 brand and the potential it had. The strength in Jamaica, Antigua and Barbuda, Barbados, retail stores and delis, in addition to offering of a brand is a powerful thing and I think we and Saint Lucia, I was now providing seafood catering services. Regional expansion began have grown exponentially over the last few to our 12 restaurants and bars in Jamaica. We with exports to Trinidad and Tobago. years as a direct result of awareness created became self-sufficient in our seafood supply.” around our new products.” “They were the first choice because of the Today, from its headquarters in Montego Bay great symbiotic relationship we have with Rainforest Seafoods may be Jamaican home- and the recently established state-of-the-art Trinidad Seafood Limited for more than 15 grown, but increasingly people across the processing plant centre in Kingston, Jamaica, years. We bought from them and we sold to region are recognising the product within Rainforest Seafoods is able to produce more them and today they are still one of our best their hotels, supermarkets and restaurants. than five million pounds of seafood in its customers and we are one of their best, so it distribution system at any given time. was always going to be a win-win situation “We have also been able to step up in for both of us.” visibility with our active and passive As Chief Executive Officer, Brian Jardim advertising: billboards, bus sheds, television heads a team of 350 employees who ensure Rainforest Seafoods currently exports to 10 advertisements and social media are a few the distribution of more than 400 different countries, which includes nine Caribbean avenues we have explored.” references of premium quality fish and Islands and the United States through their seafood, from more than 100 recognised global processing plant in Honduras. The company Another factor of success is getting the suppliers, to customers across the region. also airfreights fresh to brokers in the business plan right the first time.

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“Bankers love exporters and those earning foreign currency. Investors also find an export- driven business attractive so strive towards this goal when seeking capital. When you develop your business plan, think about how you can export all or at least a portion of your business.”

Jardim also has a list of common pitfalls for entrepreneurs to avoid.

“The Chief Customs Officer in every island is a very powerful person. So, do the necessary research and be aware of the red tape and the requirements for export. It sounds easy but many times it will be trial and error.”

Regional governments are also urged to establish a clear set of guidelines of what is required within each island so that exporters are able to meet them.

“Something as simple as packaging and the way the date is written, or as complex as phytosanitary requirements and food restrictions can become a barrier to entry.”

The role of governments and relevant agencies in regional export success went beyond ports of entry, he added. “They need to talk a little more amongst themselves and create a common playbook. We need to stop being so self-consumed as individual islands and work towards a more seamless and bureaucracy- free system because it can impact on our competitive advantage as a country and eventually as a region as a whole.”

Company Profile Rainforest Seafoods processes and distributes over 400 references of fish and assorted shellfish sourced from recognized suppliers around the world and we are committed to acquiring product from sustainable sources that use environmentally sensitive methods. For additional information visit: www. rainforestseafoods.com

Rainforest products are distributed in the following countries: Antigua and Barbuda • Barbados • Cayman Islands • Dominica • Grenada • Saint Kitts and Nevis • Saint Lucia • St Vincent and the Grenadines • Trinidad and Tobago • United Stephanie Bishop is a Communications Advisor at the Caribbean Export States of America Development Agency. She is a development communications specialist with over 10 years professional experience and holds a Masters in International Affairs.

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Exporters’ Insights company to look out for:

smaks luxury group limited

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Company Name: Earl and Countess of Wessex on board the Fort Greatest Exporting Lessons Learnt: SMAKS Luxury Group Rosalie. Following that presentation a request was In addition to choosing the right partners, it is made for our teas to be presented to Her Majesty important to stay focused. Many big companies Website Queen Elizabeth II of the United Kingdom. will try to discourage you because you are www.chairum.com entering their market with a unique product but The company was also one of 50 winners in don’t veer away from your vision or your goal. Chief Executive Officer: 2012 Idea to Innovation (i2i) competition Dr Kiran Akal organized by the Council for Competitiveness Quality is also important, when you’re and Innovation (CCI) of the Ministry of coming from the Caribbean and looking to Year Established: Planning and Sustainable Development compete in a global market, going medium 2011 in Trinidad and Tobago for budding to low can be disastrous, especially as it entrepreneurs and innovators to bring their relates to any marketing challenges you Location (s): ideas to proof of concept. SMAKS was chosen will face. Finally, believe in your brand and SMAKS teas are blended in the United for their newest product Chai Rum. carry yourself with that confidence when Kingdom (UK) and packaged in Trinidad approaching dealers. and Tobago. SMAKS has also made an arrangement with Camper and Nicholsons International, Support Received: Product Summary: the largest yacht brokerage in the world, to Caribbean Export has played an incredibly SMAKS is the Caribbean’s premier luxury become a global brand partner in which the important role in our export success. It started tea brand. There are currently eleven teas in Chai Rum will be poured at some of the most in 2011 when they gave us the very first break the SMAKS range: Antillean Green, Barbados prestigious events organized by this company, by facilitating our participation in Design Silver, Bermuda Pink, Caribbean Chai, including the Grand Prix, in Monaco. Caribbean in Santo Domingo, and the response Grenadines Purple, Hispaniola, Parang, Tobago of the public in general was phenomenal. Afternoon, Trinidad Breakfast, Trinitario Chai Rum has also most recently won silver in Dark, and Trinitario Light. In addition to the Wine & Spirits tasting competition at the Following that there were other tradeshows bespoke teas, the company is also the creator world renowned Wine & Spirits Wholesalers and opportunities to attend meetings. In of Chai Rum, the world’s first tea-infused rum. of America at Caesars Palace in Las Vegas. 2012, I was also a finalist in the pilot launch of Break Point and eventually chosen as a Export Markets: Market Entry Strategies: winner in the competition in Grenada with The company currently exports across the The first step is assessing the marketplace to the chance to pitch to judges in London. Caribbean and within Europe, specifically in get some exposure and a holistic view of the We also were awarded a Direct Assistance Austria, Belgium, Denmark, France, Sweden, market you intend to enter. Next, identify the Grant that year and it has helped us with Switzerland and the UK. right types of people with whom you wish to out visibility. With each Caribbean Export partner. The right partnership is important, activity, we tried to maximise the opportunity Major Exporting Achievements: sometimes it’s not about the big distributor, that was given to us. The first achievement for SMAKS teas was but more about connecting with people winning the pilot launch of Caribbean Export’s who share your passion and are focused on I was also involved in ANUGA in 2013, which Break Point in Grenada in 2012. During the your niche. Finally, after all the research and of all the experiences I’ve had with Caribbean presentation, we were able to present our networking, just start to distribute and stay Export over the last three years was by far the Trinidad Breakfast and Tobago afternoon to the focused on the end goal. best. Not only because of the opportunities

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All images provided by Smaks Luxury Group Ltd

for export gained, but because of the sense of camaraderie among the group of Caribbean firms exhibiting.

ANUGA was a tremendous success with five contacts being made. SMAKS is in Switzerland because of ANUGA with our Chai Rum. We have on-going discussions with a coffee company in Belgium to collaborate with them and we are also in France at the Intercontinental in Cannes. The company is also planning exports to the UK and we are in discussions with Germany.

General Recommendation on Support Needed by Exporters: Bigger firms need to begin to understand that innovation is important and that working with small entrepreneurs is the way to go. These small entrepreneurs don’t have the bureaucracy that comes with bigger organizations, but they have the speed to move and ideas to innovate. Bigger firms also need to understand that small companies are not their competition, but that they should be embraced. This is the model that is seen globally from the music industry to wines and spirits.

Small entrepreneurs also have to be sure that they have a good idea or product and if you think you have this, face the public. Bring it to market and gauge the reaction you receive. Also, be sure to have a vision for your brand: passion, product and personality.

After that, there are many government agencies, and regional agencies like Caribbean Export, and international organisations that have initiatives available from which SMEs can take advantage. The important thing is having a product or idea first.

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exporters’ tool box

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Caribbean Export’s suite of services Caribbean Export seeks to provide CARIFORUM small and medium sized enterprises (SMEs) with the tools to strengthen their capacity to export by offering a range of programmes and initiatives de- signed to enable private sector development and export promotion.

EXPORT DEVELOPMENT Productivity Network (ProNET) Benchmarking Assessment SERVICES ProNET is a modular training programme Benchmarking provides Trade Promotion for SME owners who want to grow their Organizations (TPOs) with a reliable and CAPACITY BUILDING business and become more competitive. objective assessment of their institution, its Caribbean Export has a range of training efficiency, and its performance in relation and certification programmes, which are ProNET Train-the-Trainer Programme to best business practices of TPOs across intended not only to build firm capacity, ProNET’s Train-the-Trainer initiative the world. The assessment identifies areas but to also increase their knowledge base is designed to allow management and for improvement through the use of a about the global marketplace: business consultants to further develop full complement of benchmark measures their capacity to effectively deliver the developed specifically for TPOs. Direct Assistance Grant Scheme (DAGS) ProNET modules. Proposal Writing Workshops Brand Development and Packaging The DAGS Proposal Writing Workshops Study Tours Workshops provide firms with training on grant Study Tours provide both SMEs and BSOs The Brand Development and Packaging proposal construction and methodology with the opportunity to visit new markets Workshop was developed to address some and the process for applying for grant and benefit from in-market research, of the weaknesses in regional product funding. This information can be used not and learn the best practices from some branding/packaging and overall product only for the DAGS but may also be useful of the most productive businesses and presentation for the export market. for other grant funding schemes. organizations in the world.

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Market Intelligence Training Workshops request, the Agency can provide Market The Direct Assistant Grant Market Intelligence Training Workshops for Pointers on a specific product and target export Scheme(DAGS) private sector firms and BSOs are designed to market. The tool represents an effective tool for The DAGS is a reimbursement grant assist in the capacity building of the regional presenting data collected on potential markets funding facility specifically designed to private sector to procure high quality in a way which is easy to understand. provide financial assistance to legally market intelligence information through registered firms/individuals/ BSOs with the the identification and use of various trade Market Opportunity Brief potential to export their goods and services. information data sources and platforms. Market Opportunity Briefs provide key insights on the demand conditions for a Special Call for Proposals Regional Trade Information Training particular product in both traditional and The Agency also provides special calls for Programme non-traditional markets. This tool analyses proposals allowing applicants to submit The Regional Trade Information Training various trends such as market size, market proposals for funding outside of the regular Programme builds the capacity of regional growth rate, market consumption capacity, DAGS facility e.g. Special Call for Proposals- experts from various BSOs and Trade wholesale and retail trends, social factors Food Safety. Promotion Organizations (TPOs) in trade affecting demand, supply factors, and information management. opportunities for regional companies. INVESTMENT PROMOTION Caribbean Association of Investment EXPORT PROMOTION Promotion Agencies (CAIPA) EXPORTERS’ TOOLKIT SERVICES As the Secretariat for CAIPA, Caribbean The Exporters’ Toolkit provides a step by Caribbean Export offers direct market Export is deeply involved in the support step guide on how to export goods and penetration opportunities for firms through and strengthening of regional investment services successfully. It provides templates branded platforms for specific industries. promotion agencies. and resources that can help any business to export regionally or internationally. Design Caribbean Regional Investor of the Year Awards Design Caribbean is the region’s leading The Agency stages the Regional Investor of MARKET INTELLIGENCE contemporary design event displaying the Year Awards, in collaboration with CAIPA Caribbean Export’s Caribbean Export provides a range of services the Caribbean’s finest handmade designs which invites nominations for foreign and in the area of market intelligence to equip and innovative products.(http://www. local investors who have had a significant firms with the tools required for effective designcaribbean.com/) impact on regional industries. The Award also suite of services market research, and provides critical seeks to recognize investors in strategic areas information used to inform the businesses Caribbean Essence of importance to the region, e.g. green energy, decisions necessary when embarking on The Caribbean Essence Fashion Showcase is a research and development, projects that involve exporting goods and services to new markets. Caribbean Export project that demonstrates a high degree of innovation and creativity and the vibrancy and creative expression for which those that are championed by women. Market Intelligence Portal (CE-MIP) we are known. This is where Caribbean Export The CE-MIP is designed to be an online presents the region’s trends in fashion design BUSINESS ADVOCACY platform, which gives the user the ability to and the amazing potential within this industry. Caribbean Export seeks to create an obtain market reports on products, sectors enabling business environment for regional and countries of interest. Key data the portal Caribbean Kitchen SMEs on a macro level by establishing will report on will be Trade/Economic data, Caribbean Kitchen seeks to expose relationships between territories through: Market/Sector Profiles and reports, Tariff CARIFORUM firms in the agro-processing • Bi-national Programmes and Non-Tariff data, a business register/ and specialty foods sector that have the • Trade agreements database of regional companies, trade DNA to be globally competitive. • Memorandums of Understanding agreements analysis, directory of Business (MOUs) Support Organisations, Trade regulation Soul Fusion Within the context of Business Advocacy and related documentation, and links to Soul Fusion is a musical showcase of Caribbean the Agency convenes a number of public/ important data sources. culture with artists from the diverse nature private sector engagement to facilitate the of musical genres from across the Caribbean exchange of ideas, experiences and explore Market Pointers namely Reggae, Soca, Creole Music (Zouk, opportunities for regional growth and Given the fact that exporters usually have Kompa), Caribbean Jazz, Folk and Afro-Haitian. development. Examples of these include; little time to plough through tedious and the Caribbean Exporter’s Colloquium, the complicated market research publications, ACCESS TO FINANCE Private Sector Advisory Group, the Caribbean Caribbean Export provides information on One of the most direct ways in which Caribbean Conference on the International Financial areas which are important for exporting in a Export impacts SMEs is through its funding Services Sector and the Regional Innovation succinct and well organized manner. Upon programmes. The two main programmes are: Advisory Group.

www.carib-export.comwww.carib-export.com 123 Exporters’ Tool Box directory of key contacts in CARIFORUM STATES Chambers of Belize Chamber of Commerce and Grenada Chamber of Industry & Commerce Industry Commerce P. O. Box 291, Second Floor, Withfield Building #11 Antigua and Barbuda Chamber of Tower Frequente Commerce and Industry Ltd 4792 Coney Drive P.O. Box 129 Belize City St. George’s Cnr. North and Popeshead Streets BELIZE GRENADA P. O. Box 774 Tel: (501) 223-5330 Tel: (473) 440-2937/4485 St. John’s Fax: (501) 223-5333 Fax: (473) 440-6627 ANTIGUA AND BARBUDA Email: [email protected] Email: [email protected] Tel: (268) 462-0743 Website: www.belize.org/bcci Website: www.grenadachamber.org Fax: (268) 462-4575 Email: [email protected] Dominica Association of Industry Georgetown Chamber of and Commerce Commerce The Bahamas Chamber of Commerce and Employers’ 14 Church Street P. O. Box 10110 P. O. Box 85 156 Waterloo Street Confederation Roseau North Cummingsburg Shirley Street & Collins Avenue COMMONWEALTH OF DOMINICA Georgetown P. O. Box: N-665 Tel: (767) 449-1962 GUYANA Nassau Fax: (767) 448-6868 Tel: (592) 225-5846/ (592) 227-6441 THE BAHAMAS Email: [email protected] Fax: (592) 226-3519 Phone: (242) 322-2145 Website: www.daic.dm Email: [email protected] Fax: (242) 322-4649 Website: www.gccigy.org Website: www.thebahamaschamber.com Chamber of Commerce and Production of Santo Domingo Chambre de Commerce et Barbados Chamber of Commerce d’Industrie d’Haiti & Industry Avenida 27 de Febrero No. 228, Torre Fruisa 4th Floor, Digicel Building 151 Braemar Court Sector Esperilla Angle Ave. John Paul II & Impasse Deighton Road DOMINICAN REPUBLIC Duverger St. Michael BB 14017 Tel: (809) 682-2688 Turgeau OR Fax: (809) 685-2228 Port au Prince P. O. Box 109B Email: [email protected] HAITI Brittons Hill Website: www.camarasantodomingo.do Tel: (509) 2946-7777/ 2943-1173 St. Michael Email: [email protected] BARBADOS Website: www.ccih.org.ht Tel: (246) 434-4750 Fax: (246) 228-2907 Jamaica Chamber of Commerce Email: [email protected] Suite 13-15, UDC Office Centre Building Website: 12 Ocean Boulevard www.barbadoschamberofcommerce.com Kingston JAMAICA Tel: (876) 922-0150-1 Fax: (876) 924-9056 Email: [email protected] Website: www.jamaicachamber.org.jm

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St. Kitts-Nevis Chamber of Trinidad and Tobago Chamber of Dominica Coalition of Services Commerce Industry and Commerce Industries P. O. Box 332 Chamber Building 14 Hanover Street Horsford Road Columbus Circle Roseau Portlands Westmoorings COMMONWEALTH OF DOMINICA Basseterre P. O. Box 499 Tel: (767) 266-4092 ST. KITTS AND NEVIS Port-of-Spain Fax: (767) 440-8740 Tel: (869) 465-2980/3967 TRINIDAD AND TOBAGO Email: [email protected] Fax: (869) 465-4490 Tel: (868) 637-6966 Website: www.dominicacoalition.org Email: [email protected] Fax: (868) 637-7425 Email: [email protected] Dominican Republic Coalition of Saint Lucia Chamber of Website: www.chamber.org.tt Services Industries Commerce and Agriculture Av. 27 de Febrero esq. Tiradentes. 1st Floor, American Drywall Building Torre Friusa. Oficinas Camara de Vide Bouteille Coalition of Service Comercio de Santo Domingo P. O.Box 482 Industries Santo Domingo Castries DOMINICAN REPUBLIC SAINT LUCIA Antigua and Barbuda Coalition Tel: (809) 540-6186 Tel: (758) 452-3165/ 453-1540 of Services Inc Email: [email protected] Fax: (758) 453-6907 P.O. Box W536 Email: [email protected] St. John’s Grenada Coalition of Service Website: www.stluciachamber.org ANTIGUA AND BARBUDA Industries Tel: (268) 462-6628 GIDC Building St. Vincent and the Grenadines Email: [email protected] Frequente Industrial Park Chamber of Industry and Website: www.abcsi.org Grand Anse Commerce St. George’s Unit 27 Barbados Coalition of Service GRENADA Cruise Ship Terminal Industries Tel: (473) 439-9275 Kingstown Building #3 Unit 2B Fax: (473) 439-9275 VC0100 Harbour Industrial Estate Email: [email protected] Kingstown BARBADOS ST VINCENT AND THE GRENADINES Tel: (246) 429-5357 Guyana Coalition of Service Tel: (784) 457-1464 Fax: (246) 429-5352 Providers Fax: (784) 456- 2944 E-mail: [email protected] c/o Institute of Development Studies Email: [email protected] Website: www.bcsi.org.bb University of Turkeyen Website: www.svg-cic.org Georgetown Belize Coalition of Service GUYANA Suriname Chamber of Commerce Providers Tel: (592) 675-9923 and Industry Second Floor Email: [email protected] Kamer van Koophandel en Fabrieken DFC Building Prof. W.J.A. Kernkampweg 37 828 Croney Drive Jamaica Coalition of Services P.O.Box 149 Belize City Industries Paramaribo BELIZE C/o Jamaica Promotions Corporation SURINAME Tel: (501) 223-4785 (JAMPRO) Tel: (597) 530-311/530-313 E-mail: [email protected] Head Office: 18 Trafalgar Road Fax: (597) 437-971 Website: www.bcsp.info Kingston 10 Email: [email protected] JAMAICA Website: www.surinamechamber.com Tel: (876) 978-7755/ 3337 Ext: 2157 Fax: (876) 946-0090 Website: www.jamaicatradeandinvest.org

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St. Kitts-Nevis Coalition of Manufacturers’ Suriname Manufacturers’ Services Associations Association P O Box 186 Coppenamestraat 187 C/o Ministry of International Trade Barbados Manufacturers’ Paramaribo Basseterre Association SURINAME ST. KITTS AND NEVIS Suite 201, Bldg. #8 Tel: (597) 43-4014 / 43-9797 Tel: (869) 465-8631 Harbour Industrial Estate Fax: (597) 43-9798 Email: [email protected] St. Michael Email: [email protected] BARBADOS Website: www.asfasuriname.com Saint Lucia Coalition of Services Tel: (246) 426-4474/ 427-9898 Industries Fax: (246) 436-5182 Trinidad and Tobago #14 Orange Park Commercial Centre Email: [email protected] Manufacturers’ Association Bois d’Orange Website: www.bma.bb TTMA Building P O Box Choc 8056 42 Tenth Avenue Castries Dominica Manufacturers’ Barataria SAINT LUCIA Association P.O. Box 971 Tel: (758) 452 7864 c/o Invest Dominca Authority Port-of-Spain Fax: (758) 452 8695 1st Floor Financial Centre TRINIDAD AND TOBAGO Email: [email protected] Kennedy Avenue Tel: (868) 675-8862 Website: www.slcsi.org Roseau Fax: (868) 675-9000 DOMINICA Email: [email protected] St. Vincent and the Grenadines Tel: (767) 448-2045 Website: www.ttma.com Coalition of Service Industries Fax: (767) 448-5840 c/o Ministry of Foreign Affairs, Foreign Email: [email protected] Trade and Consumer Affairs Trade Promotion 3rd Floor, Administrative Building Guyana Manufacturers’ and Organizations Kingstown Services Association Ltd ST. VINCENT AND THE 157 Waterloo Street Bahamas Agricultural and GRENADINES North Cummingsburg Industrial Corporation Tel: (784) 456-2060 Georgetown BAIC Building, East Bay Street, Nassau, Email: [email protected] GUYANA New Providence Website: www.svgcsi.org Tel: (592) 223-7405/ 223-7406 P.O. Box N-4940 Fax: (592) 225-5615 BAHAMAS Trinidad and Tobago Coalition of Email: [email protected] Tel: (242) 322-3740-3/ 325-2288 Services Industries Limited Website: www.gmsagy.org Fax: (242) 322-2130/ 2123 1st Floor, #45 Cornelio Street Email: [email protected] Woodbrook The Jamaica Manufacturers’ Website: www.bahamas.gov.bs/baic Port of Spain Association Ltd. TRINIDAD AND TOBAGO 85A Duke Street Barbados Investment and Tel: (868) 622-9229 Kingston Development Corporation Fax: (868) 622-8985 JAMAICA P.O. Box 1250, Pelican House Email: [email protected] Tel: (876) 922-8880-3/ 922-8869 Princess Alice Highway Website: www.ttcsi.org Fax: (876) 922-9205 Bridgetown Email: [email protected] St. Michael BB11000 Website: www.jma.com.jm BARBADOS Tel: (246) 427-5350 St. Lucia Manufacturers Association Fax: (246) 426-7802/ 2300 P.O. Box MF 7177 Email: [email protected] Castries Website: www.bidc.org SAINT LUCIA Tel: (758) 451-2222 Fax: (758) 451-0125 Email: [email protected] Website: www.madeinstlucia.com

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Belize Trade and Investment Jamaica Promotions Corporation Exportt Development Service Head Office, 18 Trafalgar Road 151B Charlotte Street 14 Orchid Garden Street Kingston 10 Port of Spain Belmopan City JAMAICA TRINIDAD AND TOBAGO Cayo District Tel: (876) 978 7755 Tel: (868) 623-5507 BELIZE Fax: (876) 946-0090 Fax: (868) 625-8126 Tel: (501) 822-3737/ 233-1913/2472 Email: [email protected] Email: [email protected] Fax: (501) 822 0595/ 233-2464 Website: www.jamaicatradeandinvest.org Website: www.exportt.co.tt Email: [email protected] Website: www.belizeinvest.org.bz St. Kitts Investment Promotion Agency Exporters Dominica Export Import Agency C.A.P. Southwell Industrial Park Associations P. O. Box 173 Basseterre Bayfront ST. KITTS AND NEVIS Dominican Association of Roseau Tel: (869) 465 1153 Exporters COMMONWEALTH OF DOMINICA Fax: (869) 465 1154 Virgilio Diaz Ordonez No. 42 Tel: (767) 448-2780/ 3494/ 3495 Email: [email protected] Esq. Viriato Fiallo Fax: (767) 448-6308 Website: www.stkittsipa.org Ens. Julieta Email: [email protected] Santo Domingo, D.N. Website: www.dexiaexport.com Office of Private Sector Relations/ DOMINICAN REPUBLIC Trade Export Promotion Agency Tel: (809) 567-6779/ 227-3388 Eastern Caribbean States Export 2nd Floor, Hewanorra House Fax: (809) 563-1926 Development Unit Pointe Seraphine Website: www.adoexpo.org P. O. Box 769 Castries 4th Floor, Financial Center SAINT LUCIA Jamaica Exporters’ Association Kennedy Avenue Tel: (758) 468-2145/ 2123 1 Winchester Road, Kingston 10 Roseau Fax: (758) 452-4606 JAMAICA COMMONWEALTH OF DOMINICA Email: [email protected] Tel: (876) 960-4908/ 968-5812 Tel: (767) 448-2240 / 5503/ 6555 Website: www.opsr.org.lc Fax: (876) 960-9869 Fax: (767) 448-5554 Email: [email protected] Email: [email protected] / edu@ Invest SVG Website: www.exportjamaica.org oecs.org 2nd Floor, Reigate Building Website: www.oecs.org/edu Granby Street The Grenada Exporters Association P.O. Box 2442 Kingstown C/O Grenada Bureau of Standards Center for Export and Investment of SAINT VINCENT AND THE P.O. Box 2036 the Dominican Republic GRENADINES Queen’s Park Ave. 27 de Febrero Tel: (784) 457-2159 St. George’s Esq. Ave.Gregorio Luperon Fax: (784) 456-2688 GRENADA Plaza de la Bandera Email: [email protected] Tel: (473) 440-5886/ 440-6783 Santo Domingo Website: www.investsvg.com Fax: (473) 440-5554 DOMINICAN REPUBLIC Email: [email protected] Tel: (809) 530-5505 Suriname Business Development Fax: (809) 534- 4447 Center Website: www.cei-rd.gov.do Executive Office of the Suriname Business Forum Guyana Office for Investment Hendrikstraat 69 190 Camp & Church Streets 1st Floor Georgetown Mottonshoop GUYANA SURINAME Tel: (592) 227-0653/ 0654/ 0658 Tel: (597) 49-9010 Fax: (592) 225 0655 Fax: (597) 49-9011 Email: [email protected] Email: [email protected] Website: www.goinvest.gov.gy Website: www.sbc.sr

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Antigua and Barbuda The Bahamas

Population 89,000 Population 351,461 GDP (USD) $1,230,000,000 GDP (USD) $8,149,004,000 GDP Per Capita (USD) $13,669 GDP Per Capita (USD) $21,908 GDP Growth Rate (%) 0.6 GDP Growth Rate (%) 1.8 GDP Contribution by Agriculture - 2.2% GDP Contribution by Agriculture – 2.1 % sector (%) Industry - 16.4% sector (%) Industry – 7.1 % Services - 81.4% Services – 90.8% Inflation rate (consumer 1.1% Inflation rate (consumer 0.4% prices) prices) Official exchange rate $2.70 Official exchange rate $1.00 (per US Dollar) (per US Dollar) Merchandise Trade $33,067,000 Merchandise Trade $2,545,558,000 Export value Export value Top 5 Non-Traditional 1) Other made textile articles, sets, Top 5 Non-Traditional 1) Ships, boats and other floating Exports worn clothing etc Exports structure 2) Electrical, electronic equipment 2) Plastics and articles thereof 3) Ships, boats and other floating 3) Fish, crustaceans, molluscs, structures aquatic invertebrates nes 4) Articles of iron and steel 4) Works of art, collectors pieces 5) Beverages, spirits and vinegar and antiques Top 5 Export Partners 1) United States of America – 5) Salt, sulphur, earth, stone, plaster, and (%) share in total 26.5% lime and cement Exports 2) United Kingdom – 20.7% Top 5 Export Partners 1) United States of America – 24.4% 3) New Zealand – 5.3% and (%) share in total 2) Dominican Republic – 16.1% 4) Montserrat – 3% Exports 3) Poland – 14.5% 5) St Kitts and Nevis – 3% 4) Mozambique – 8.3% 5) Turkey – 5.4% Merchandise Trade $344,622,000 Merchandise Trade $9,498,866,000 Import value Import value Top 5 Non-Traditional 1) Beverages, spirits and vinegar Top 5 Non-Traditional 1) Ships, boats and other floating Imports 2) Electrical, electronic equipment Imports structures 3) Miscellaneous edible 2) Electrical, electronic equipment preparations 3) Organic chemicals 4) Articles of iron or steel 4) Articles of iron or steel 5) Plastics and articles thereof 5) Furniture, lighting, signs, Top 5 Import Partners 1) United States of America – prefabricated buildings and (%) share in total 52.2% Top 5 Import Partners 1) United States of America – 39.2% Imports 2) China – 5.7% and (%) share in total 2) Republic of Korea – 10.7% 3) Trinidad and Tobago – 4.5% Imports 3) Singapore – 10.4% 4) United Kingdom – 4.1% 4) India – 8.1% 5) Japan – 3% 5) Colombia – 6.2% Doing Business Index 71 Doing Business Index 84 /189 /189 www.carib-export.comwww.carib-export.com 129 APPENDIX

Barbados Belize

Population 268,792 Population 347,800 GDP (USD) $4,224,850,000 GDP (USD) $1,604,500,000 GDP Per Capita (USD) $14,917 GDP Per Capita (USD) $4,834 GDP Growth Rate (%) 0 GDP Growth Rate (%) 0.7 GDP Contribution by Agriculture – 3.1% GDP Contribution by Agriculture - 13% sector (%) Industry – 13.9% sector (%) Industry - 23% Services – 83% Services - 64% Inflation rate (consumer 1.8% Inflation rate (consumer 0.5% prices) prices) Official exchange rate $1.98 Official exchange rate $1.98 (per US Dollar) (per US Dollar) Merchandise Trade $467,424,000 Merchandise Trade $418,635,000 Export value Export value Top 5 Non-Traditional 1) Beverages, spirits and vinegar Top 5 Non-Traditional 1) Sugars and sugar confectionery Exports 2) Pharmaceutical products Exports 2) Residues, wastes of food 3) Optical, photo, technical, medi- industry, animal fodder cal, etc apparatus 3) Electrical, electronic equipment 4) Salt, sulphur, earth, stone, plas- 4) Beverages, spirits and vinegar ter, lime and cement 5)Wood and articles of wood, 5) Paper and paperboard, articles wood charcoal of pulp, paper and board Top 5 Export Partners and 1) United States of America – 37.4% Top 5 Export Partners 1) United States of America – (%) share in total Exports 2) United Kingdom – 20.4% and (%) share in total 18.2% 3) Nicaragua – 5.5% Exports 2) Trinidad and Tobago – 11.5% 4) Netherlands – 5.5% 3) Guyana – 4.6% 5) India – 5.3% 4) Jamaica – 4.4% Merchandise Trade $927,824,000 5) St Lucia – 4.3% Import value Merchandise Trade $1,768,742,000 Top 5 Non-Traditional 1) Electrical, electronic equipment Import value Imports 2) Plastics and articles thereof Top 5 Non-Traditional ) Electrical, electronic equipment 3) Paper and paperboard, articles Imports 2) Pharmaceutical products of pulp, paper and board 3) Plastics and articles thereof 4) Fertilizers 4) Beverages, spirits and vinegar 5) Miscellaneous edible 5) Paper and paperboard, articles preparations of pulp, paper and board Top 5 Import Partners and 1) United States of America – Top 5 Import Partners 1) United States of America – 33% (%) share in total Imports 32.2% and (%) share in total 2) Trinidad and Tobago – 26.2% 2) Mexico – 11.4% Imports 3) Suriname – 4.9% 3) China – 11.4% 4) China – 4.4% 4) Netherland Antilles – 9.6% 5) United Kingdom – 4% 5) Guatemala – 6.8% Doing Business Index 91 Doing Business Index 106 /189 /189

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Dominica Dominican Republic

Population 73,449 Population 9,378,818 GDP (USD) $504,814,815 GDP (USD) $60,613,625,980 GDP Per Capita (USD) $7,011 GDP Per Capita (USD) $5,826 GDP Growth Rate (%) -0.8 GDP Growth Rate (%) 4.1 GDP Contribution by Agriculture – 15.7% GDP Contribution by Agriculture - 6% sector (%) Industry – 15.6% sector (%) Industry - 29.1% Services – 68.7% Services - 64.9% Inflation rate (consumer -0.4% Inflation rate (consumer 4.8% prices) prices) Official exchange rate (per $2.70 Official exchange rate (per $43 US Dollar) US Dollar) Merchandise Trade Export $48,315,000 Merchandise Trade Export $7,960,986,000 value value Top 5 Non-Traditional 1) Footwear, gaiters and the like, Top 5 Non-Traditional 1) Pearls, precious stones, metals, Exports parts thereof Exports coins, etc 2) Salt, sulphur, earth, stone, 2) Tobacco and manufactured plaster, lime and cement tobacco substitutes 3) Soaps, lubricants, waxes, 3) Cotton candles, modelling pastes 4) Iron and steel 4) Tobacco and manufactured 5) Pharmaceutical products tobacco substitutes Top 5 Export Partners and 1) United States of America – 5) Optical, photo, technical, (%) share in total Exports 51.1% medical etc apparatus 2) Haiti – 13.1% Top 5 Export Partners and 1) Guatemala – 11.8% 3) Canada – 12.2% (%) share in total Exports 2) Israel – 11.7% 4) China – 2.9% 3) Guyana – 11.3% 5) Netherlands – 1.6% 4) France – 8% 5) Egypt – 6.5% Merchandise Trade Import $19,349,837,000 Merchandise Trade Import $187,165,000 value value Top 5 Non-Traditional 1) Pharmaceutical products Top 5 Non-Traditional 1) Plastics and articles thereof Imports 2) Cotton Imports 2) Meat and edible meat offal 3) Paper and paperboard, articles 3) Animal, vegetable fats and of pulp, paper and board oils, cleave products etc 4) Cereals 4) Rubber and articles thereof 5) Iron and steel 5) Iron and steel Top 5 Import Partners and 1) United States of America – Top 5 Import Partners and 1) United States of America – (%) share in total Imports 41.5% (%) share in total Imports 38.5% 2) China – 12.3% 2) China – 10.6% 3) United Kingdom – 4.7% 3) Venezuela – 6.6% 4) Singapore – 4.1% 4) Mexico – 6.1% 5) Canada – 2.7% 5) Trinidad and Tobago – 4.6% Doing Business Index /189 77 Doing Business Index /189 117

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Grenada Guyana

Population 110,152 Population 753,554 GDP (USD) $834,074,059 GDP (USD) $3,075,733,571 GDP Per Capita (USD) $7,876 GDP Per Capita (USD) $3,847 GDP Growth Rate (%) 1.8 GDP Growth Rate (%) 5.3 GDP Contribution by griculture – 5.6% GDP Contribution by Agriculture – 20.7% sector (%) Industry – 15.8% sector (%) Industry – 38.5% Services – 78.5% Services – 40.8% Inflation rate (consumer -0.0% Inflation rate (consumer 2.4% prices) prices) Official exchange rate (per $2.70 Official exchange rate (per $205.70 US Dollar) US Dollar) Merchandise Trade Export $42,425,000 Merchandise Trade Export $1,074,133,000 value value Top 5 Non-Traditional 1) Coffee, tea, mate and spices Top 5 Non-Traditional 1) Pearls, precious stones, metals, Exports 2) Copper and articles thereof Exports coins etc 3) Fish, crustaceans, molluscs, 2) Cereals aquatic invertebrates nes 3) Ores, slag and ash 4) Cocoa and cocoa preparations 4) Sugars and sugar 5) Paper and paperboard, articles confectionery of pulp, paper and board 5) Fish, crustaceans, molluscs, Top 5 Export Partners and 1) United States of America – aquatic invertebrates nes (%) share in total Exports 24.2% Top 5 Export Partners and 1) United States of America – 2) Malaysia – 19.8% (%) share in total Exports 30.9% 3) Germany – 16.4% 2) Venezuela – 13% 4) Netherlands – 11.3% 3) United Kingdom – 11.9% 5) France – 4.8% 4) Canada – 7% 5) Germany - 5.3% Merchandise Trade Import $181,651,000 Merchandise Trade Import $1,740,954,000 value value Top 5 Non-Traditional 1) Meat and edible meat offal Top 5 Non-Traditional 1) Electrical, electronic Imports 2) Cereals Imports equipment 3) Furniture, lighting, signs, 2) Plastics and articles thereof prefabricated buildings 3) Dairy products, eggs, honey, 4) Plastics and articles thereof edible animal product nes 5) Wood and articles of wood, 4) Fertilizers wood charcoal 5) Iron and steel Top 5 Import Partners and 1) United States of America – Top 5 Import Partners and 1) United States of America – (%) share in total Imports 52.5% (%) share in total Imports 22.8% 2) Barbados – 5.7% 2) Trinidad and Tobago – 18.7% 3) United Kingdom – 4.9% 3) China – 9.2% 4) Brazil – 4.3% 4) Venezuela – 7.5% 5) China – 4.3% 5) Netherland Antilles – 5.3% Doing Business Index /189 107 Doing Business Index /189 115

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Haiti Jamaica

Population 753,554 Population 9,996,731 Population 2,930,050 GDP (USD) $3,075,733,571 GDP (USD) $8,459,326,660 GDP (USD) $14,362,262,585 GDP Per Capita (USD) $3,847 GDP Per Capita (USD) $820 GDP Per Capita (USD) $5,290 GDP Growth Rate (%) 5.3 GDP Growth Rate (%) 4.3 GDP Growth Rate (%) 1.3 GDP Contribution by Agriculture – 20.7% GDP Contribution by Agriculture – 24.1% GDP Contribution by Agriculture – 6.5% sector (%) Industry – 38.5% sector (%) Industry – 19.9% sector (%) Industry – 29.4% Services – 40.8% Services – 56% Services – 64.1% Inflation rate (consumer 2.4% Inflation rate (consumer 5.9% Inflation rate (consumer 9.3% prices) prices) prices) Official exchange rate (per $205.70 Official exchange rate (per $45 Official exchange rate (per $111 US Dollar) US Dollar) US Dollar) Merchandise Trade Export $1,074,133,000 Merchandise Trade Export $1,022,151,000 Merchandise Trade Export $1,298,424,000 value value value Top 5 Non-Traditional 1) Pearls, precious stones, metals, Top 5 Non-Traditional 1) Articles of apparel, accessories, Top 5 Non-Traditional 1) Beverages, spirits and vinegar Exports coins etc Exports knit or crochet Exports 2) Ores, slag and ash 2) Cereals 2) Articles of apparel, accessories, 3) Sugars and sugar 3) Ores, slag and ash not knit or crochet confectionery 4) Sugars and sugar 3) Essential oils, perfumes, 4) Edible vegetables and certain confectionery cosmetics, toiletries roots and tubers 5) Fish, crustaceans, molluscs, 4) Edible fruit, nuts, peel of citrus 5) Coffee, tea, mate and spices aquatic invertebrates nes fruit, melons Top 5 Export Partners and 1) United States of America – Top 5 Export Partners and 1) United States of America – 5) Copper and articles thereof (%) share in total Exports 34.9% (%) share in total Exports 30.9% Top 5 Export Partners and 1) United States of America – 84.7% 2) Canada – 15.4% 2) Venezuela – 13% (%) share in total Exports 2) Canada – 3.1% 3) Netherlands – 8.8% 3) United Kingdom – 11.9% 3) Mexico – 2% 4) Germany – 7.8% 4) Canada – 7% 4) China – 1.5% 5) United Kingdom – 6.9% 5) Germany - 5.3% 5) Republic of Korea – 1.3% Merchandise Trade Import $4,096,070,000 Merchandise Trade Import $1,740,954,000 Merchandise Trade Import $3,499,533,000 value value value Top 5 Non-Traditional 1) Cereals Top 5 Non-Traditional 1) Electrical, electronic Top 5 Non-Traditional 1) Cotton Imports 2) Electrical, electronic Imports equipment Imports 2) Cereals equipment 2) Plastics and articles thereof 3) Electrical, electronic 3) Plastics and articles thereof 3) Dairy products, eggs, honey, equipment 4) Beverage, spirits and vinegar edible animal product nes 4) Animal, vegetable fats and oils, 5) Furniture, lighting, signs, 4) Fertilizers cleavage products etc prefabricated buildings 5) Iron and steel 5) Plastics and articles thereof Top 5 Import Partners and 1) United States of America – Top 5 Import Partners and 1) United States of America – Top 5 Import Partners and 1) United States of America – 35.2% (%) share in total Imports 48.6% (%) share in total Imports 22.8% (%) share in total Imports 2) Dominican Republic – 29.8% 2) China – 15.3% 2) Trinidad and Tobago – 18.7% 3) China – 9.2% 3) Mexico – 4.4% 3) China – 9.2% 4) Indonesia – 2.1% 4) Japan – 3.5% 4) Venezuela – 7.5% 5) India – 1.8% 5) Brazil – 3% 5) Netherland Antilles – 5.3% Doing Business Index /189 177 Doing Business Index /189 94 Doing Business Index /189 115

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St Kitts and Nevis St Lucia Population 51,538 Population 163,362

GDP (USD) $742,962,963 GDP (USD) $1,322,222,222 GDP Per Capita (USD) $13,710 GDP Per Capita (USD) $7,309 GDP Growth Rate (%) 2.0 GDP Growth Rate (%) -0.5 GDP Contribution by Agriculture – 1.8% GDP Contribution by Agriculture – 3.1% sector (%) Industry – 23.1% sector (%) Industry – 17.4% Services – 75.1% Services – 79.5% Inflation rate (consumer 0.7% Inflation rate (consumer 1.5% prices) prices) Official exchange rate (per $2.70 Official exchange rate (per $2.70 US Dollar) US Dollar) Merchandise Trade Export $105,360,000 Merchandise Trade Export $110,764,000 value value Top 5 Non-Traditional 1) Electrical, electronic equipment Top 5 Non-Traditional 1) Electrical, electronic equipment Exports 2) Ships, boats and other floating Exports 2) Edible fruit, nuts, peel of citrus structures fruit, melons 3) Pharmaceutical products 3) Beverages, spirits and vinegar 4) Optical, photo, technical, 4) Paper and paperboard, articles medical etc apparatus of pulp, paper and board 5) Beverages, spirits and vinegar 5) Pearls, precious stones, metals, Top 5 Export Partners and 1) United States of America – coins etc (%) share in total Exports 53.4% Top 5 Export Partners and 1) Dominican Republic – 56% 2) Belgium – 10% (%) share in total Exports 2) United States of America – 3) Poland – 9.7% 15.7% 4) Canada – 8% 3) United Kingdom – 10.7% 5) Germany – 4.1% 4) Guyana – 6.7% Merchandise Trade Import $389,334,000 5) Barbados - 4.4% value Merchandise Trade Import $973,952,000 Top 5 Non-Traditional 1) Ships, boats and other floating value Imports structures Top 5 Non-Traditional 1) Electrical, electronic equipment 2) Electrical, electronic equipment Imports 2) Meat and edible meat offal 3) Pearls, precious stones, metals, 3) Wood and articles of wood, coins, etc wood charcoal 4) Wood and articles of wood, 4) Plastics and articles thereof wood charcoal 5) Pearls, precious stones, metals, 5) Meat and edible meat offal coins, etc Top 5 Import Partners and 1) United States of America – Top 5 Import Partners and 1) United States of America – (%) share in total Imports 36.7% (%) share in total Imports 68.1% 2) Germany – 24% 2) Brazil – 10.3% 3) Mexico – 8.7% 3) Colombia – 6.1% 4) China – 4% 4) United Kingdom – 2.3% 5) Italy – 3.5% 5) Barbados – 2.1% Doing Business Index /189 101 Doing Business Index /189 64

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St Vincent and the Grenadines Suriname

Population 102,918 Population 573,311 GDP (USD) $725,555,556 GDP (USD) $5,230,909,091 GDP Per Capita (USD) $6,634 GDP Per Capita (USD) $9,700 GDP Growth Rate (%) 2.8 GDP Growth Rate (%) 4.4 GDP Contribution by Agriculture – 5.4% GDP Contribution by Agriculture – 8.9% sector (%) Industry – 20.3% sector (%) Industry -36.6% Services – 74.4% Services – 54.5% Inflation rate (consumer 0.8% Inflation rate (consumer 1.9% prices) prices) Official exchange rate (per $2.70 Official exchange rate (per $3.25 US Dollar) US Dollar) Merchandise Trade Export $53,160,000 Merchandise Trade Export $1,006,754,000 value value Top 5 Non-Traditional 1) Ships, boats and other floating Top 5 Non-Traditional 1) Pearls, precious stones, metals, Exports structures Exports coins etc 2) Milling products, malt, 2) Fish, crustaceans, molluscs, starches, inulin, wheat gluten aquatic invertebrates nes 3) Works of art, collectors pieces, 3) Edible fruit, nuts, peel of antiques citrus fruit, melons 4) Beverages, spirits and vinegar 4) Wood and articles of wood, 5) Residues, wastes of food wood charcoal industry, animal fodder 5) Cereals Top 5 Export Partners and 1) Barbados – 18.3% Top 5 Export Partners and 1) The United States of America (%) share in total Exports 2) Turkey – 18.1% (%) share in total Exports – 32.8% 3) Antigua and Barbuda – 10.9% 2) Belgium – 22% 4) Greece – 10.4% 3) Canada – 11.9% 5) Switzerland – 10.1% 4) Barbados – 8.7% Merchandise Trade Import $454,833,000 5) France - 6.8% value Merchandise Trade Import $1,706,622,000 Top 5 Non-Traditional 1) Ships, boats and other floating value Imports structures Top 5 Non-Traditional 1) Electrical, electronic 2) Pearls, precious stones, metals, Imports equipment coins etc 2) Plastics and articles thereof 3) Cereals 3) Articles of iron or steel 4) Electrical, electronic equipment 4) Beverages, spirits and vinegar 5) Meat and edible meat offal 5) Iron and steel Top 5 Import Partners and 1) Singapore – 22.7% Top 5 Import Partners and 1) The United States of America (%) share in total Imports 2) United States of America – (%) share in total Imports – 26.3% 20.5% 2) The Netherlands – 16.6% 3) Denmark – 14.2% 3) Italy – 11.2% 4) Switzerland – 6.5% 4) China – 10.1% 5) China – 5.6% 5) Japan – 4.8% Doing Business Index /189 82 Doing Business Index /189 161

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Trinidad and Tobago

Population 1,341,151 GDP (USD) $24,640,839,008 GDP Per Capita (USD) $18,373 GDP Growth Rate (%) 1.6 GDP Contribution by Agriculture – 0.3% sector (%) Industry – 57.7% Services – 42% Inflation rate (consumer 5.2% prices) Official exchange rate (per $6.36 US Dollar) Merchandise Trade Export $18,091,718,000 value Top 5 Non-Traditional 1) Iron and steel Exports 2) Fertilizers 3) Beverages, spirits and vinegar 4) Paper and paperboard, articles of pulp, paper and board 5) Fish, crustaceans, molluscs, aquatic invertebrates nes

Top 5 Export Partners and 1) United States of America – (%) share in total Exports 37. 9% 2) Argentina – 10.2% 3) Brazil – 8.4% 4) Chilie – 5.8% 5) Spain – 5.1% Merchandise Trade Import $6,908,544,000 value Top 5 Non-Traditional 1) Ores, slag and ash Imports 2) Electrical, electronic equipment 3) Articles of iron and steel 4) Plastics and articles thereof 5) Optical, photo, technical, medical, etc apparatus Top 5 Import Partners and 1) United States of America – (%) share in total Imports 34.8% 2) Russian Federation – 10.9% 3) Brazil – 6.9% 4) Colombia – 6.5% 5) Canada – 4.8% Doing Business Index /189 66

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