ITC by Country Report Suriname 05/12/2014 ITC by country - Suriname 1 Table of Contents 1. Country / Territory Brief 2. People and Economy 2.1 People 2.2 Economy 3. Trade Performance 3.1 General Trade Performance 3.2 Sector Trade Performance 4. Trade Strategy and Policy 4.1 Trade and Development Strategies 4.2 Domestic and Foreign Market Access 4.3 Trade Facilitation 4.4 Business and Regulatory Environment 4.5 Infrastructure 5. ITC and the Country/Territory 5.1 ITC Projects 5.2 Events 5.3 ITC Contacts 6. Trade Information Sources and Contacts 6.1 Trade Information Sources 6.2 Trade Contacts This is a pdf version of the captioned country contents in the intracen web site of the International Trade Centre. This document was generated on 05.12.2014. For the latest information about ITC's work and the country, please refer to www.intracen.org © International Trade Centre 2014 ITC encourages the reprinting and translation of its publications to achieve wider dissemination. Short extracts of this document may be freely reproduced, with due acknowledgement of the source. Permission should be requested for more extensive reproduction or translation. A copy of the reprinted or translated material should be sent to ITC. ITC by country - Suriname 2 1. Country / Territory Brief Suriname’s economy is principally based in the export of aluminium oxide (alumina) and small amounts of aluminium produced from bauxite. A former Dutch colony, democracy in Suriname has gained strength in recent years, creating an economy more diversified and less dependent on Dutch financial assistance. The country’s biodiversity makes it an attractive destination for eco-tourism. The country still faces some challenges in terms of broadening its economic base, diversifying its trading partners and improving the business environment. Based on the ITC 2014-2018 Strategic Approach to the Caribbean Region, ITC will focus on implementing at regional level the recommendations of strategies recently developed by CARICOM for the cultural industries and professional services sectors. ITC by country - Suriname 3 2. People and Economy 2.1 People Total population 515,372 in 2012 with growth rates of 0.9% p.a during 2008-2012 (growth rates per annum) Population density (people per sq. km of 3 in 2012 land area) Female population 49.8% in 2012 Population below 15 27.8% in 2008 ; 29.3% in 2012 years of age Urban population 68.5% in 2012 Population living below $1.25 a day at purchasing N.A power parity (PPP) Ranking in the Human 105 out of 186 in 2012 Development Index (HDI) Evolution of the Human Development Index (HDI) Source: United Nations Development Programme Human Development Indicators Note: The Human Development Index measures the overall development of a nation and ranges from 0 (low level of development) to 1 (highest level of development). The United Nations Development Programme (http://hdr.undp.org) provides a detailed explanation. ITC Regional group refers to ITC definition Life expectancy at birth (years) (71); Mortality rate, under-5 (per thousand live births) (20.8) in Health 2012 Education Education index - expected and mean years of schooling (rank) ( 112 out of 191) in 2012 Income level NA Inequality Inequality-adjusted HDI (rank) (72 out of 191)in 2012 Poverty Multidimensional Poverty Index (rank)( 61 out of 191) in 2012 Gender Gender inequality index (rank) (55 out of 191) in 2012 Sustainability NA ITC by country - Suriname 4 2.2 Economy 2004 2008 2012 Sector added value US $ %GDP US $ %GDP US $ %GDP Agriculture 79 5.8 323 9.8 0 0 Industry 482 35.3 1,421 43.2 0 0 Added value per sector Manufacturing 227 16.6 894 27.2 0 0 (current US$ and % of GDP) Services 805 58.9 1,548 47 0 0 Source: World Bank World Development Indicators (WDI) Note: Added value is US$ terms are expressed in million, GDP US$, and "6,976 to be read 6'976" Evolution of GDP (constant 2005 US$) Source: World Bank World Development Indicators (WDI) Note: ITC calculations based on the World Bank WDI Evolution of GDP per capita (constant 2005 US$) Source: World Bank World Development Indicators (WDI) Note: ITC calculations based on the World Bank WDI 2004 2008 2012 Remittance ($ millions) 9 2 NA Remittances as a Share of Remittance (% GDP) 61.3 6.2 NA GDP Remittances as a Share of Source: World Bank World Development Indicators (WDI) GDP Note: ITC calculations based on World Bank WDI, IMF BOP statistics, and "6,976 to be read 6'976" ITC by country - Suriname 5 3. Trade Performance 3.1 General Trade Performance 3.1.1 Evolution of Trade Ratio to GDP - Goods 3.1.2 Evolution of Trade Ratio to GDP - Services ITC by country - Suriname 6 3.1.3 Evolution of Total Trade 3.1.4 Trade Map ITC by country - Suriname 7 3.1.5 Export and Import by Leading Destination - Export 3.1.6 Export and Import by Leading Destination - Import ITC by country - Suriname 8 3.1.7 Evolution of Exports and Imports by Destination - Export 3.1.8 Evolution of Exports and Imports by Destination - Import ITC by country - Suriname 9 3.1.9 Total Export Growth Source: ITC, calculations based on ITC’s Trade Competitiveness Map data. Note:Graph shows decomposition of the country’s export growth in value terms by diversification pattern over the indicated period. 3.1.10 Marginal Export Growth Source: ITC, calculations based on ITC’s Trade Competitiveness Map data. Note:Graph shows decomposition of the country’s export growth in value by structural driving effects over the indicated period. Values are in US$ thousands. ITC by country - Suriname10 3.1.11 Composition of Trade in Services - Export 3.1.12 Composition of Trade in Services - Import ITC by country - Suriname11 3.1.13 Evolution of FDI ITC by country - Suriname12 3.2 Sector Trade Performance 3.2.1 Sectoral Diversification in Products - Export 3.2.2 Sectoral Diversification in Products - Import ITC by country - Suriname13 3.2.3 Sectoral Diversification in Destinations - Export 3.2.4 Sectoral Diversification in Destinations - Import Sectoral diversification in origin for Suriname's imports (mirror) Sector's Share of top 3 import supplying List of the top 3 supplying countries growth countries in Sector in value sector’s imports (% p.a) 2009- 2009 2013 2009 2013 2013 United States of America ; Italy ; United States of America ; Unclassified products 28.0 % 93.0 % 93.6 % Belgium ; Netherlands Netherlands United States of America ; China United States of America ; Italy ; IT & consumable electronics 22.3 % 82.8 % 81.3 % ; India China United States of America ; United States of America ; Non-electronic machinery 19.8 % 70.0 % 48.8 % Netherlands ; China Netherlands ; Italy United States of America ; Brazil United States of America ; Brazil Fresh food 16.4 % 81.2 % 75.0 % ; Netherlands ; Netherlands Leather products 13.3 % 79.8 % 83.0 % Brazil ; China ; Germany China ; Brazil ; Germany Netherlands ; United States of Netherlands ; United States of Processed food 12.8 % 57.3 % 51.4 % America ; Brazil America ; Belgium China ; Netherlands ; United Clothing 11.7 % 60.4 % 66.7 % China ; India ; Netherlands States of America Netherlands ; United States of China ; Netherlands ; United Basic manufactures 10.2 % 65.0 % 57.9 % America ; China States of America ITC by country - Suriname14 3.2.5 Sectors by World Demand - Export 3.2.6 Sectors by World Demand - Import ITC by country - Suriname15 3.2.7 Trade Performance Index ITC by country - Suriname16 4. Trade Strategy and Policy 4.1 Trade and Development Strategies Year Strategy name Sector UNDAF Suriname 2002-2006 The United Nations Development Assistance Framework outlines Suriname's major development challenges 2001 and... ITC by country - Suriname17 4.2 Domestic and Foreign Market Access The Republic of Suriname is part of Caribbean South America and an economy heavily dependent on trade, whose imports and exports are equivalent to 100 per cent of its gross domestic product (GDP). Suriname is classified as an upper middle-income country and has enjoyed economic growth over recent years, in no small part, thanks to high commodity prices. Nevertheless, Suriname has been facing development challenges due to: a narrow export base dominated by a limited number of natural resource products, outdated governance, a lacking regulatory framework, which have not evolved significantly since independence in 1975, as well as the high cost of doing business. Inter-American Development Bank, 2006, Suriname Trade Sector Policy Note Trade Policy and Market Access Surinam applied the simple average MFN tariff of 11.4 per cent in 2012. The tariff line ranges from duty-fee to 50 per cent. Agricultural products face higher applied tariff rates on average (19.5 per cent) than non-agricultural products (9.8 per cent). Suriname is one of the 15 member states of the Caribbean Community and Common Market (CARICOM) and therefore applies the CARICOM Common External Tariff (CET) except for products on the A and C lists, which tariffs may be higher or lower than the CARICOM CET. The Forum of the Caribbean Group of African, Caribbean and Pacific States (CARIFORUM) of which Surinam is a member signed the Economic Partnership Agreement (EPA) with the EU in 2008. It provided Surinam with preferential access to the EU market, which is duty-free and quota-free. Given that there is a need to diversify the export base, the Government has aimed to increase the export of agricultural products and become a major food provider in the Caribbean region. The strategies include producing more value added products and diversifying into new products, which would boost exports as well as job-creation.