Caribbean Export OUTLOOK 3rd Edition

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Trade & Export Hot Spots

T en years ago, the French Caribbean Outermost Regions (FCORs) were mostly untapped and unknown markets to a majority of the CARIFORUM private sector. Since 2008, with the negotiations and subsequent signing of theCARIFORUM- EU Economic Partnership Agreement (EPA), the relationship between the FCORs and CARIFORUM has been changing with the numerous efforts that are occurring at all levels to increase trade and cultural relations. Trade between the FCORs and the CARIFORUM States may be described in general terms as being ‘limited’. According to data available from the French National Institute of Statistics and Economic Studies (INSEE); in 2013, the value of CARIFORUM exports to the FCORs totalled US$238,145,616 whereas the FCORs exported US$16,218,092 to the CARIFORUM States. Mineral exports accounted for over 90% of the value of all CARIFORUM exports to the FCORs. Apart from these mineral exports which are dominated by largemultinational companies the current greatest export products for CARIFORUM are found in agricultural and seafood products, agro-processing (sauces, spices, condiments, jams, jellies, etc.); and paper and paperboard products. Mineral based products also largely dominate the FCORs' exports to CARIFORUM. The top five (5) categories of products exported from the FCORs to CARIFORUM during 2012-2016 were mainly mineral products, machinery electrical, transportation, metals, chemicals and allied industries. In light of the data cited above, as well as the various economic forecastsavailable;itisreasonabletoconcludethat the economies of the FCORs are in need of diversification just as the CARIFORUM states’. Having what could be described as the “typical Caribbean economy” – these countries depend heavily on a few agricultural products and tourism, whilst relying on foreign markets to meet demand, thereby creating a large trade deficit and suffering from a high rate of unemployment. Undeniably, the EPA, which provides a comprehensive framework for trade and investment, signalled a new era of trade relations. The Agreement has provided a historic opportunity for the FCORs and CARIFORUM to further and deepen the regional integration efforts through increased trade. Article 239 of the EPA takes into account the geographical proximity of the outermost regions of the European Community and the CARIFORUM States and speaks to the necessity to facilitate regional integration in all sectors identified. The raison d’être for Article 239 lies in the need for the outermost regions to be integrated into

their regional economy more efficiently. The Article aims at fostering links withCARIFORUMcountries by facilitating cooperation in all areas covered by the Agreement including innovation. Promoting innovation among the CARIFORUM private sector as well as building competitiveness has been a special objective of Caribbean Export under the 10 th EDF Regional Private Sector Development Programme (RPSDP) from 2011-2016. Market intelligence studies commissioned by Caribbean Export, as well as several studies and reports have been developed on trade and investment opportunities between the FCORs and their Caribbean neighbors. These studies suggest that there are opportunities for agro-processed products (sauces, spices, condiments, jams, jellies, etc.); food and beverages (food preparations, mineral waters, beers, aerated waters, etc.); paper and paperboard products; furniture; cosmetics; household chemicals and other products. The on-going EPA awareness campaign has highlighted on many occasions the various opportunities offered through the FCORs for wider access to the European Markets using the FCORs as ‘trade bridges.’ The majority of their trading activities take place with mainland France. On a weekly basis, hundreds of containers arrive from France and return empty. These empty containers represent one ripe opportunity for the CARIFORUM private sector to capitalise on for shipping their products through the FCORs to gain access to mainland European markets. With respect to the trade of services through the EPA, twenty-nine (29) sub-sectors are opened to Caribbean professionals. The agreement also allows the possibility for CARIFORUM entrepreneurs/investors to establish new businesses or invest in existing firms in the EU. Additionally, the Special Protocol on entertainment and culture offers possibilities to supply entertainment services in the EU countries except Belgium. This is further supported by studies conducted by Lydia Barfleur, Lucia Angelo and Murielle Lesales in 2008 and 2009, Keith Nurse, Larry Placide and Noel Watson in 2010 which identified opportunities for trade and investment in services sectors between the FCORs and CARIFORUM. Sectors covered included: Environmental Services, Cultural Services, ICT Services, Maritime Services, Health and Wellness Services, Management Consulting Services, Professional Services, Renewable Energy, Education Services and Tourism. Thequestion therefore is howtoharness the opportunities offered by the CARIFORUM EPA and build competitive industries, which can stand alone as saleable exports and by extension fuel the regions’ economies by earning foreign