Implementation of the 10th EDF Regional Provate Sector Programme

ENHANCING COMPETITIVENESS AND PROMOTING INNOVATION

Under Component 1 of the 10th EDF RPSDP, Caribbean Export has successfully developed the Regional Investment Promotion Strategy (RIPS), with continued work on the promotion and implementation of the instrument. Key activities in the development of the strategy included the convening of eight RIPS Steering Committee meetings, nine RIPS consultations with 174 regional stakeholders, and a validation of the RIPS among all 19 investment promotion agencies (IPAs) and eight other industry stakeholders. As follow-on to the process, the RIPS handbook has been developed for implementation among regional IPAs. The Agency has also worked to strengthen the capacity of regional IPAs and the Caribbean Association of InvestmentPromotionAgencies(CAIPA) to attract foreign direct investment. This was achieved through the delivery of training and certification to members, facilitating the participation of IPAs in outward and inward-bound investment missions, hosting Foreign Direct Investment (FDI) related events, and supporting the brand optimisation and positioning of CAIPA. A principal area of development under Component 1 relates to the provision of financial assistance to export-ready and exporting CARIFORUM firms. This was primarily achieved through the Direct Assistance Grant Scheme (DAGS), as well as other financing programmes. As it relates to the DAGS, Caribbean Export has awarded 282

grant contracts to regional firms during 2011-2015 with a combined value of €5.8 million. Further, 22 firms have received some €197,000 under the Special Call for Proposals - Food Safety, and eight SMEs have been awarded €76,660, within the In- Firm Design and Branding Project. Collectively, these grants have not only provided access to finance, but also contributed to an increase in exports and additional employment within beneficiary firms. Caribbean Export also continued development work in the area of strengthening high potential niche sectors to benefit from EPA provisions. Activities under this area involved the delivery of training and certification to 3827 beneficiaries, the undertaking of eight studies on the needs of these sectors, the convening of 31 meetings/clusters to support firms and associations within the various sectors, and the support and execution of export promotion activities and platforms for firms to capitalise on opportunities within the regional, European and wider international markets. C aribbean Export’s work in the area of investment promotion is guided by the conveyed needs of the 19 IPAs who are members of the CAIPA 2 , independent studies of the needs of regional IPAs 3 , and global assessments undertaken by organisations such as the World Bank 4 . During the first year of the 10th EDF RPSDP implementation, the Agency initiated the proactive engagement of, and collaboration with, regional stakeholders for the promotion of investment opportunities for the Caribbean, with the aimof realising the result of developing, promoting and implementing an investment promotion strategy for the region. Achieving this result was first dependent on the finalisation of discussions at the level of the CARICOM Secretariat surrounding the treatment of investments from regional and third party countries. Against this background, the Secretariat’s Office of Trade Negotiations (OTN) commenced the development of a CARICOM Investment Code (CIC), which was designed to provide a framework for the protection and promotion of intraregional and extra-regional investments, through the development of a Model Investment Chapter in Free Trade Agreements (FTAs) for CARICOM. In 2012, following development of the draft CIC, Caribbean Export commissioned an international legal expert to review the document. Subsequently, a meeting of regional stakeholders was convened in Saint Lucia to examine the recommendations provided by consultant, as well as to discuss improvements to the Code and to proffer suggestions for the advancement of regional investment policymaking. Another step towards development of the RIPS was the drafting REGIONAL INVESTMENT PROMOTION STRATEGY

2 IPAs share and document these needs during CAIPA’s Annual General Assembly. 3 For example, the development of the CAIPA Strategic Plan of 2014 was based on the review of the needs of the Association’s members 4 Namely the Global Investment Promotion Best Practices Benchmarking Assessment of 2012.

14