Caribbean Export OUTLOOK 2016 - 2017

Pulse OF THE CARIBBEAN

is estimated to be US$6.4 trillion, of which an estimated US$1.6 trillion is available to SMEs.

earnings, the lack of understanding of intellectual property issues are all challenges that continue to impact on regional trade and exports. Achievinggrowthandexpansionwillalsodependon the region’s ability to take advantage of the various trade agreements to which it is signatory. On one hand, CARICOMhas signed a number of bilateralagreements,includingwiththeDominican Republic, Colombia, Venezuela, Costa Rica and Cuba.Unfortunately,theseagreementshaveresulted inverylittletradeandexportsofCARICOMgoods andservicestothesecountries.TheEU’sEconomic Partnership Agreement (EPA) is by far the region’s best performing trade partnership, accounting for about 17%of our total exports. This is almost three timesthetotalexportsfromtheothercountrieswith which CARICOM has bilateral trade agreements. What this data reveals is that our private sector has not found a way to effectively utilise the potential presented in these trade agreements. Caribbean Export’s Support As such, Caribbean Export, under the 10th EDF has sought to address the barriers SMEs face through a number of strategic initiatives. For example, one of the key interventions that the Agency uses to provide firms with access to finance is the Direct Assistance Grant Scheme (DAGS) which provides SMEs that are export ready with much needed capital. For nearly a decade, under the 9th and 10th EDF, Caribbean Export has awarded 479 grants valued at some € 8.5 million to SMEs and BSOs in all 15

CARIFORUM states. In addition, we have been working on an initiative to build a Regional Angel Investor Network (RAIN) to offer SMEs another option for accessing finance for their businesses. Beyond limited access to finance, the inability of many Caribbean exporters to respond to demand in potential target markets has its origins in a variety of factors: weak managerial capacities, lack of market intelligence, weak productive capacities, weak product innovation (linked to intellectual propertyrights),inabilitytofulfilqualitystandards, regulatory barriers to market entry and lack of viablebusinesscontacts.Export-orientedSMEsare particularly affectedby these andother obstacles to theirexportcompetitiveness.Inordertohelpexport- orientedSMEsovercometheseobstacles,Caribbean Export has developed and introduced the HELIX model, a phased approach combining diagnostics withcapacitybuildingandawidevarietyofconcepts and tools. The model’s main components are: the HELIX enterprise diagnostic tool, the ProNET modular training programme (for SMEs that want to improve their export competitiveness), coaching and technical workshops, and branded platforms thatprovidemarketaccesssupport.Formoreabout ourservices,pleasereviewoursuiteofservicesatthe end of the publication. The improvement and growth of exports for all CARIFORUM countries, both intra-regionally and extra-regionally, continues to be one of our key priorities. We will continue to tailor our work programme to meet the exporters where they are, whilebeingagileenoughtoalsoexploreandfacilitate newwindows of opportunity for regional exports.

Similarly,specialtytourismsuchasmedicaltourism has not been fully developed in the region and this offers another opportunity for diversification. In 2012,anestimated1.6millionAmericanstravelled to other destinations for more affordable medical services. Two trends in the American market are responsible for the boom in medical tourists; an aging population of baby boomers and tens of millions of uninsured or underinsured patients in theUS.GiventheproximityoftheregiontotheUS or even the EU, the Caribbean can position itself to capture a niche segment of the medical tourism market away from traditional destinations such as Thailand or India. However, we must adjust our services tomeet the needs of such tourists. Challenges Even as we look at maximising our high-priority sectors or diversifying into new sectors, there remain challenges that prevent the region from truly establishing itself as a global leader. In the agro-processing industry, for example, the issue of a consistent supply of quality product remains a deterrent to entering new markets. Also many agro-processed products do not yet meet global food safety requirements and, as such, cannot be exported. In tourism, the issue of affordable and reliable intra-regional transportation continues to deter visitors and is a major handicap to the expansion of the sector. Limited access to finance, the poor coordination of services to truly position the creative sector as a major contributor to GDP

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