Caribbean Export OUTLOOK 2016

Examining the Region’s

Export Performance

Recent data has shown that the CARIFORUM

economyhasgrownoverthelastyearwithanincrease

inexportedgoodstoallregionsexceptAfrica.While

this is good news, it is tempered by the fact that

exports remain concentrated in a few sectors and

theregioncontinuestosufferfromlowproductivity

and weak linkages to global value chains. Efforts

to reform the business environment and increase

regionalcompetitivenesshaveledtosomeCaribbean

economies’ improved ranking on theWorld Bank’s

Doing Business Report 2016. Jamaica (64 in the

global ranking), Saint Lucia (77), andTrinidad and

Tobago (88) have witnessed the highest rankings

in the region. Despite this improvement for a few

countries, the regional average still lingers at 108

out of 189 countries.

In 2013, exports from the region totalled US$51

billion,buttherewasanoveralltradedeficitofUS$11

billion. Exports from the region still accounted for

lessthan1%ofglobalexports.While,asaregion,we

havenotbeenabletoeliminatethedeficitaltogether,

the data does show positive movement. Between

2009 and 2013, the region grew its exports to the

EU by 2%, to Latin America by 41%, to North

America by 11%; and intra-regionally by 9%.

This level of growth is laudable as the average

export growth rate for CARIFORUM remains

higher than that of other regions. The region’s trade

performance is highlighted by growth in goods and

services exports by 17% and 12% respectively. As a

percentage of Gross Domestic Product (GDP) the

region’s services exports at 36% was almost double

that of goods exports (17%). The services sector was

the greater contributor to GDP for the majority of

CARIFORUMcountries,particularlythosefromthe

Organisation of EasternCaribbean States (OECS).

In terms of the share of services trade, the largest

services exporters from the region were the

Dominican Republic followed by Trinidad and

Tobago, The Bahamas, Jamaica, and Barbados.

While data on trade in services is not readily

available,tourism,whichisthemainservicessector

for the region, grewby 2.3% earningUS$28 billion

in 2013.

Acloser look at the region’s export performance by

sector gives us a better understanding of where the

opportunitiesforexpansionexistandthedirection

inwhichwe should be moving.

Agro-Processing

The agro-processing sector, although only

totalling US$2.2 billion in 2013 and representing

7% of global exports, has significant potential

that we are yet to sufficiently capitalise on.

Export data out of the agro-processing sector

suggests that the CARIFORUM region is not

taking full advantage of the opportunities to

supply the world’s top demanded agro-processing

products. When it comes to intra-CARIFORUM

trade, the region currently supplies only four of

the top 10 demanded products; the statistics are

By Pamela Coke Hamilton

Pulse OF THE CARIBBEAN