Caribbean Export OUTLOOK 2016

is estimated to be US$6.4 trillion, of which an

estimated US$1.6 trillion is available to SMEs.

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

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.

Pulse OF THE CARIBBEAN