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Cómo DAGS permitió a Dawson Trading aumentar el personal, las exportaciones y los ingresos/ventas

Who:

Dawson Trading Company Limited: www.easypickinsja.com,

Country:

Jamaica,

Sector:

Agro-processing and Distribution,

IMMEDIATE IMPACT:

  • Product Development – 6 new (shelf stable) products;

MID-TERM IMPACT:

  • Increase in staff – 6;
  • Increase in exports – 17%;
  • Impact on Sector (suppliers, etc.) – increased revenue;
  • Increase revenue/sales –20%;

Profile:

Dawson Trading Company Limited (Dawson Trading) was established in 2013 by owner, Jordan Dawson. The company specializes in the growth, procurement, and exportation of traditional Jamaican fresh produce including mangoes, breadfruit, avocado, peppers, and yams, to overseas markets primarily Canada, USA, and the UK.

The Issue:

Dawson Trading sought to address several main concerns facing the Jamaican produce sector, namely: reducing spoilage; increasing volumes purchased from small and rural farmers; and accessing new markets. In addition, the company wanted to increase revenue; create new attractive and necessary product lines for overseas customers; keep workers employed for longer periods of time; and earn foreign exchange.

Assistance Received:

Dawson Trading’s received a financial grant via the Direct Grant Assistance Scheme (DAGS) in 2018 funded by the European Union under the 11th EDF Regional Private Sector Development Programme. With the grant Dawson Trading sought to develop a viable methodology to keep fresh fruit in its natural state for longer periods of time by processing/peeling, blast freezing and storing the product items in a frozen state. The project included the identification, acquisition, and installation of production equipment for the processing of fresh produce, the development of food safety – HACCP plan and recall program to meet HACCP certification. In addition, the project also included marketing and promotions including the creation of a website and suitable branding for the packaging and labelling of the products.

Immediate Impact/Outcomes:

The production equipment acquired, through the DAGS, has enabled Dawson Trading to create a new line of six different shelf stable flash frozen fruit products. This has allowed the company to increase the quantity of produce purchased from local farmers. Notably, these purchases now include bruised and below standard fruit, which would previously have been discarded. This action has, therefore, reduced wastage and increased revenue generated for Jamaican farmers.

The acquisition of machinery for processing fresh produce was central in producing a new product line of frozen fruits, for the export market. Frozen products are now exported to North America, Europe, and the Caribbean. It has also increased the volume of purchases, reduced spoilage, and increased revenues for suppliers, by purchasing below standard produce (with no effect on the final quality of the product) and higher volumes during peak bearing season.

In addition, the company developed a website and a logo. Training was carried out for the implementation of food safety standards for key staff members and major work was done on documentation and improvement of the facility towards HACCP certification.

Medium-term Results and Impact:

Over the medium-term, the DAGS project enabled Dawson Trading to increase staff by 6 employees, namely an administrative assistant, a driver, and 4 labourers. In 2020 the company’s exports increased by 17% and revenue/sales increased by 20%. Of this percentage 2% was from the flash frozen line. The project also significantly increased revenue for local farmers because they can now sell more volumes including bruised products.

The COVID-19 pandemic severely affected the export demand for fresh produce which were previously Dawson Trading’s primary export and the new product line provided considerable revenue to supplement the shortfall. Further, Dawson Trading’s increased purchase volumes from local farmers supplemented the farmers’ revenue shortfalls that occurred, due to shutdowns in the tourism sector (hotels).

“The Direct Assistance Grant Program (DAGS) through the Caribbean Export Development Agency, has been instrumental in helping to equip my company with the provisions needed to propel it into its next stage of growth. Primary drivers for this growth were the implementation of food safety systems and the tooling of our factory to further develop our line of Jamaican flash frozen produce. Without the DAGS project, the company’s survival would have been unlikely during the pandemic.” Jordan Dawson, Owner.

Technical Barriers to Trade Affecting SMEs

Internationalization has created an interconnected globalized economy for the trade of goods and services, to customers of varying languages and cultural backgrounds dispersed over large geographical areas.

For small and medium-sized enterprises (SMEs) internationalization provides opportunities to become successful, viable global traders; however, trading outside one’s borders is not without challenges.

This article will discuss what are Technical Barriers to Trade (TBT), with specific focus on standards and regulations, and how these measures hinder trade. The section on ‘Industry Dynamics’ will highlight challenges experienced with TBTs because of the lack of harmonization between countries, and their consequential impact on business operation relative to size, cost, efficiency, and growth. Finally, targeted advice will be given, and official trade support channels provided to aid SMEs in navigating these barriers and make their products export ready.

Small and Medium-Sized Enterprises (SMEs)

The World Trade Organisation classifies SMEs as firms employing between 10-250 people, possessing a strong presence in trade: but representing only a small share in a country’s exports, with a narrow product range and target markets. Due to their narrowness in scope, that is, product portfolio and target market, many trade barriers negatively impact SMEs’ internal operations, ability to expand, and increases their fixed cost. As a result, SMEs experience an erosion of competitiveness because of higher priced goods.

Technical Barriers to Trade (TBT)

According to Business Development Bank of Canada (2020), a Technical Barrier to Trade (TBT) “is any regulation, standard or procedure that could make exporting goods to another country difficult” TBT’s, specifically standards and regulations are the most common, highly frustrating and at times unwieldly barriers experienced by SMEs.

Standards and Regulations

Standards are agreed levels of quality, whereas regulations are directives imposed and maintained by authorities or bodies such as International Trade Organisation. Examples of Standards are labelling, packaging requirements and production standards.

Regulations surround the use of chemicals or additives and general best practices. They are important as they are designed to protect animal and human safety and health. Regulations prevent deceptive practices, ensure quality while protecting the environment, and empowers knowledgeable customers to make proactive choices.

Although these measures are positive and offer a level of safety, some can be used as tools to hinder exports and imports from various countries, cripple economies and stagnate business growth and development.

Tools of Hinderance

The US International Trade Commission cited the disadvantages faced by American agricultural exports to the European Union (EU). Although the issues lie in harmonization of standards, the basis of the challenges faced still surround standards as a technical barrier to trade.

On a worldwide scale, Figure 1. illustrates the global share of goods subject to import regulations and standards. The dark concentration represents the areas with the highest concentration of import goods, which is 75% of global trade, subject to these regulations.

Goods destined for major European markets are predominately identified as those subject to technical regulations. This supports the position of the United States Trade Commission and underscores the need for greater harmonisation of these policies.

Industry Dynamics

Industry research conducted cites various compliance issues incurred by American manufacturing SMEs relating to standards and regulations, the lack of harmonization between nations on testing and the issuance of certification.

One such example is the controversial issue of food additives and Genetically Modified Organisms (GMOs) levels in products for export to EU markets from the United States. The EU through its regulations allows for low level presence of GMOs, however the non-harmonisation of standards and conformity testing practices remains the challenge. The US International Trade Commission confirmed companies which were certified by the American National Standards Institute still encountered problems selling products in the EU market due to discrepancies in standards and testing procedures between the American and European standard bodies. This lack of harmonious cohesion surrounding the preconceived high levels of GMOs in American food products has continued to fuel the debate between the two nations.

A similar situation occurs between the EU and United Kingdom (UK) in the organic food sector where conformity assessment does not start and end with the manufactured final product but extends throughout the food supply chain to the suppliers of raw materials. See the Food Supply Chain chart.

Source: Kiger, P. May 2020. Supply Chain 101: What happens when our food supply is Disrupted by a Pandemic.

The US International Trade Commission ranks the UK and the EU as the third and sixth largest target market respectively for organic products. The global shift towards a healthier lifestyle is apparent. This underscores the importance for SMEs to know all elements contributing to a product. These technical distinctions create major export barriers for SMEs if not intimately versed in their suppliers’ practices. The potential result is a higher administrative cost to assess and trace all suppliers within their global food supply chain network.

How can SMEs Navigate TBTs?

A myriad of factors must be considered to competently address and navigate the waters surrounding Technical Barriers to Trade (TBT). The following are key steps companies can take when considering new export jurisdictions:
1. Conduct Market Intelligence on new target market,
2. Identify target market requirements,
3. Determine the type of product to produce,
4. Verify the quality and certification of raw materials sourced as inputs,
5. Identify the production and human resource capacity needed,
6. Acquire the technical knowledge to comply with both local and international standards and regulations,
7. Have a realistic outlook on time, effort and the correlating impact on cost associated with compliance.

Finally, SMEs must ensure to source all information from creditable and reliable sources. Caribbean Export Development Agency website provides videos on Labelling and Packaging requirements, Food, Product and Safety guidelines and many more for regional SMEs considering exporting goods to the European Union.

Size does matter!

It is important to note that the severity of the impact of TBTs on a business is subjective and depends on the firm’s size and scale. Nonetheless for most SMEs the impact hits where it hurts…in the bottom line! The production of most SMEs is narrow in scope. With limited market diversification and restrictive financing. They simply do not possess the flexibility needed to meet such challenges. This inelasticity transcribes into higher priced goods and the loss of market competitiveness. In contrast, larger companies through economies of scale can absorb and spread fixed costs resulting from barriers, over broad sales volumes. They have greater access to funding, can spread risk and ensure consistent revenues through product diversification. This helps to keep the selling price of individual products down which in turn helps to maintain a competitive edge.

SMEs must be cognizant of these variables in their decision-making process.

Trade Support Channels

There are numerous Business Support Organisations (BSOs) and bureaus which facilitate and provide a wide breadth of in-depth information and guidance to assist SMEs around various trade matters especially TBTs such as standards and regulations. Collectively these organisations are supported by regional governing bodies and agencies like the Caribbean Export Development Agency which provides support to SMEs to strengthen their institutional capacity and export competitiveness. This work will contribute to the creation of an ecosystem of export-ready SMEs.

Regardless of the trade challenges faced all is not lost! With the right tools, knowledge, and support, barriers will dissolve into dust and be swept away on the tide of success!

Un estudio de caso de DAGS sobre cómo Cummings Wood Products mejoró la eficiencia productiva

Who:

Cummings Wood Products; cwpgy.com,

Country:

Guyana,

Sector:

Manufacturing,

IMMEDIATE IMPACT:

  • Enhanced Productive Capacity and Efficiency – 7-8%;
  • Product Development – 4 new products;
  • Reduced Operational Costs/Wastage – 7-8%;

MID-TERM IMPACT:

  • Increase in staff – 23% or 10 employees;
  • Increase in exports – 10% (2019);
  • Entry into new market – Jamaica;

Profile:

Cummings Wood Products (CWP) founded by Andre Cummings (CEO) in 2008, produces and exports flooring and decking to the Caribbean. The company’s vision is to be the leading flooring company by enhancing beauty and value with its products and services.

The Issue:

CWP was challenged with high production costs due to the low production capacity of current machinery and low level of recovery from raw materials. The company also wanted to reduce the environmental impact of its production processes; offer quality products at an affordable price to consumers; create jobs and develop the economies of Guyana’s rural communities.

Assistance Received:

In 2018 CWP received a Direct Assistance Grant funded by the European Union under the 11th EDF Regional Private Sector Development Programme. The funds enabled Cummings Wood Products’ to implement a plan to increase the yield from raw material (hardwood) and lower the company’s production costs, through economies of scale. The project included the acquisition and installation of production machinery to make new hardwood product lines, and transform off-cuts, end trimmings, etc. into saleable hardwood products, to increase the percentage rate of gross timber resource inputted into the production system.

Immediate Impact/Outcomes:

The acquisition of new technologically advanced production equipment allowed CWP to aggressively pursue value-added development per Guyana’s National Log Export Policy, intended to curb the export of round logs in favour of downstream value-added products. Aggressive product development and innovation was completed to ensure all product dimensions satisfy buyers.

The company expanded product lines include ‘custom-built’ modular kitchen cabinets, standard and customised chest of drawers, framed and paneled doors and end matched flooring. The company also saw significant improvement in productivity performance, cost minimization and production yield output at all cost centers throughout the manufacturing plant.

Production and maintenance downtime, change-over (set-up) loss time, dropped, with better up-time and line availability at the machine lines. Factor and total productivity and surplus production yield performance were consistently achieved monthly at all cost centers, machine lines, and at the plant level. In addition, two members of the management staff benefitted from certified technical training overseas and were instrumental in disseminating formalized in-house training to lower-level staff.

Medium-term Results and Impact:

In the medium-term, the production machinery acquired by CWP through the DAGS increased the yield from raw materials by 20%. This reduced the demand for the quantity of trees needed and thereby reduced the environmental impact from production. In addition, promotion of lesser-known hardwood species is expected to reduce the likelihood of overharvesting popular species. Wastage from forest produce was also minimised by utilising wood pieces as short as 6 inches.

The new machinery also enhanced productive efficiency and reduced operational costs by 7-8%. The approximate increase in export sales induced by the project was 10% and the number of staff increased by 23% or 10 employees. The company also successfully entered the Jamaican market.

“The Direct Assistance Grant Scheme is absolutely relevant and indispensable for private sector development. Often times than not, most entrepreneurs / business owners in the private sector are cash strapped and are trapped in a cycle of repaying large sums of debt equity from insubstantial turnovers (profits), all in a dire effort to keep their businesses afloat. Moreover, most private sector businesses, particularly young start-ups, lack the financial resource to invest in critical capital acquisition, to take their businesses to the next tier of performance. Access to reimbursement funding from the Direct Assistance Scheme serves as a major help to suchlike business owners, and also to other entrepreneurs who would want to access such funding, even as they seek to develop strategic alliances with Caribbean Export to benefit from the other service platforms. Andre Cummings, CEO

Original Flava is Cooking with Absolutely Caribbean Products

That’s right!

Over the next few weeks UK brother’s Craig and Shaun McAnuff from Original Flava will share some tantalising recipes using authentic Caribbean products that you can follow along and prepare easily in your kitchen.

An initiative of Caribbean Export to support raising visibility and awareness of Caribbean products, the Absolutely Caribbean cooking series will feature:

  1. Curry shrimp using Naledo’s Truly Turmeric paste

2. Sweet pepper lamb steaks using Firehouse Spices

3. Rum & Tonic using Claytons Kola Tonic

4. Chocolate brownies using Definite Chocolate

5. Curried vegetables using Eatons Mango Jam

6. Gin and champagne cocktail using Blue Light Caribbean Gin

7. Spicey chicken wings using Habanero Trinidad sauce

8. Corn fritters using Elan’s Tamarind BBQ sauce

9. Frothy coffee frappuccino using Trumpet Tree’s Jamaica Blue Mountain Coffee

10. Mango ketchup chicken using Flauriel sauces by Sugar Town Organics

Be sure to follow Absolutely Caribbean on Instagram and look out each Thursday for a new recipe!

Cómo Coffee Solutions Limited aumentó las ventas de exportación y los ingresos en 2019: un estudio de caso de DAGS

Who

Coffee Solutions Limited, http://www.coffeesolute.com

Country

Jamaica

Sector

Agro-processing

IMMEDIATE IMPACT

  • Enhanced Productive Capacity and Efficiency
  • Product Enhancement (quality, packaging, etc.)
  • Renewable Energy and Energy Conservation

MID-TERM IMPACT

  • Increase in staff – 1 (part-time)
  • Increase in exports – 2019 – 10%
  • Increase revenue/sales – 2019 – 10%
  • Reduction in Energy Costs/Consumption – 110%
  • Sector Impact – increased profit margin for farmers
  • Reduced Operational Costs and/or Wastage – 20-30%

Profile

Coffee Solutions Limited (Coffee Solutions) was registered in 2006 and has become a global player in the roasting and exporting of Jamaican Blue Mountain Coffee. The company provides equipment and machinery for pulperies, coffee factories and shops and offers consultancy services in the post harvesting and cultivation of coffee to clients.

The Issue

Coffee Solutions needed to improve the storage of its coffee beans to ensure quality and consistency of the products for the export market and become more competitive. To achieve this Coffee Solutions set out to reduce energy costs, generate revenue and decrease its carbon footprint on the environment.

Assistance received

Coffee Solutions undertook the implementation of an energy efficient, cost cutting and quality improvement venture under the Direct Grant Assistance Scheme (DAGS) in 2018 funded by the European Union via the 11th EDF Regional Private Sector Development Programme. The funds were used to improve the company’s competitiveness, growth, and long-term sustainability. The project comprised the installation of a solar power system/photovoltaic renewable energy system to lower energy costs and reduce the company’s impact on the environment. The project also included the acquisition of a shipping or trucking container to be retrofitted as a green coffee beans storage facility, and the installation of a solar power system to provide temperature and humidity-controlled storage to improve the quality of green beans and to ensure more consistent finished products going to market.

Immediate Impact/Outcomes

After project implementation Coffee Solutions saw a 20% reduction in energy costs. The electricity bill was reduced from JMD25,000 to JMD5,000. Exports increased in 2019 by 10%; quality improvement were realized in the stored green beans, and more consistency was observed in the finished products. Members of staff gained knowledge on the efficient use of energy and control storage system.

Medium-term Results and Impact

In the medium-term Coffee Solutions saw a 15% increase in export sales and a 10% increase in revenue in 2019. The company was also able to retain its current employees, provide extended working hours for temporary employees and increased staff by 10% or 1 employee, because of the DAGS project. The installation of the new storage facility resulted in a 20-30% reduction in the cost of the company’s coffee beans; improvements in the quality of beans; and an increase in the length of time that the products can be stored.

Coffee Solutions also installed a photovoltaic energy system that generates an estimated 10% energy surplus which is sold into the national grid. The company now earns revenue through this system. The company has also seen a 110% reduction in energy costs/consumption because of the installation of the system.

The cost savings have enabled the company to restructure its pricing mechanism and offer small farmers lower prices for contract processing services. The coffee farmers in Jamaica, importantly, include women, who can now access more competitive rates for processing and thereby increase their profit margin.

In addition, the implementation of nine renewable energy system projects has reduced and, in a few cases, eliminated the use of energy generated from non-renewable sources. By using less non-renewable energy, the carbon footprints of small farmers in the industry have been equally reduced.

“The Direct Grant Assistance Scheme is impacting regional businesses in a positive manner. It allows companies to undertake project[s] three to five years in advance of the company’s realistic projection. The funding facility should continue to help Caribbean firms achieve their full export potential.” Basil Jones, Managing Director

Cómo Young Island Resort redujo costos y mejoró la prestación de servicios: un estudio de caso de DAGS

Who

Young Island Resort
https://youngisland.com/

Country

St. Vincent and the Grenadines

Sector

Hospitality

IMMEDIATE IMPACT
Product Development
Reduced Operational Costs/Wastage
Reduction in Energy Costs/Consumption

MID-TERM IMPACT
Increase in revenue/sales – 16%
Increase in staff – 4%
Increase in exports -5%
Decrease in operating expenses and/or wastage – 63%

Profile

The Young Island Resort is a fifty-two-year-old establishment with twenty-nine cottage-styled accommodations, located on a 12.6 acres private island in St. Vincent and the Grenadines.

The Issue

Young Island Resort needed to reduce the cost of doing business; modernise the Resort; and improve the delivery of its services. The Resort also wanted to increase website traffic and occupancy rates; and enhance their menu and pastry offerings to compete more effectively and become more viable as a business.

Assistance Received

Young Island Resort received a financial grant under the Direct Assistance Grants Scheme (DAGS) in 2018 funded by the European Union under the 11th EDF Regional Private Sector Development Programme.

The company undertook a multi-faceted and expansive project to improve and enhance the Resort’s product delivery, services, and aesthetics. Renewable energy measures including the purchase of an AC inverter, solar water heaters and low and low flow shower heads for all bathrooms were implemented, to reduce energy costs and carbon footprint. In addition, capacity building in the form of staff training, specifically in pastry and international cuisine; menu development and costing; product marketing and promotional materials production; and the acquisition of furnishings and service delivery software and hardware were also undertaken to increase customer satisfaction.

Immediate Impact

At the close of the DAGS project in 2018, the Resort reported that it had achieved its objectives in enhancing its facilities and service delivery. Greater energy efficiency was achieved because of the installation of AC inverters and the resort now utilises natural energy to operate. The Resort is also now able to monitor electricity cost to measure savings because of new solar water heaters. In addition, the installation of low flow shower heads resulted in less water wastage and positive guest feedback on the new fittings.

Ten (10) staff who were trained by Jennifer Lakhan-D’Souza- George Brown College, Canada, in pastry making, are now certified and new pastry items are currently on the menu. Also, chefs and accounts staff members (four females and six males) were trained in culinary areas of costing, menu development, production, and sanitization, by Kevin Mitchell- Culinary Institute of Charleston- South Carolina, USA.

The Resort has also produced a new promotional video, which is utilised in roadshows and travel and trade shows. Flyers and ten thousand (10,000) brochures were developed and are now available at the Resort’s reservation agencies in the UK, USA, and Canada. This promotional material has assisted the Resort in penetrating new markets and attracting more guests from the Caribbean, Europe, USA, and Canada.

The kitchen equipment purchased provides safe and healthy meals to guests, the additional laundry washers acquired have led to increased capacity and efficiency, and the acquisition of twelve (12) beds have increased customer satisfaction. The Resort has also implemented a smoother workflow in the housekeeping department which has improved service delivery to guests. In addition, new point of sale software and hardware have led to enhanced staff accountability and expedited kitchen orders, productivity has improved, and the inventory system has led to greater operating efficiencies.

At the close of the project, it was expected that the immediate gains realised by the company would further result in longer term outcomes and impact of increased exports of 5% and increased staff of 4%.

Medium-term Results and Impact

Over the medium-term, the Resort increased its revenue and sales (which included export sales) by 16%. Moreover, Young Island Resort has experienced cost savings, with a 63% reduction in its water bill from 2018-2019. The Resort began seeing an increase in business from January-March 2020, since implementation of the DAGS project. Non-resident business continues to thrive with repeat guests, which could be attributed to the new food items and menu presentation. Media coverage led to increased visibility for the Resort and customer interest in the new pastry items. The Resort also hired an additional pastry staff, however, due to the COVID-19 pandemic the staff was subsequently laid off.

“The Resort can only grow from strength to strength now, in terms of the momentum that we have started. And I must say…that the point-of-sale system…that sort of energized our bar and restaurant staff […] I am really, really, very happy and I certainly would endorse a DAGS at any time […] I speak positively about it to anyone […] you know, just saying thanks…” Bianca Porter, General Manager.

elizabeth morgan | Las mujeres ministras de comercio

March 8 was commemorated as International Women’s Day (IWD) with the theme, ‘Women in Leadership: Achieving an Equal Future in a COVID-19 World’. At the multilateral level, the three international trade organisations, the World Trade Organization (WTO), the International Trade Centre (ITC); and the United Nations Conference on Trade and Development (UNCTAD) are currently headed by women, one from the CARICOM region.

The Caribbean is recognised by the International Labour Organization (ILO) as a region with a high percentage of female managers. The 2015 statistics showed Jamaica having one of the world’s highest percentage of female managers and a recent report from the World Economic Forum, using ILO 2019 statistics, has Saint Lucia among the top eight countries in the world with the highest number of female managers.

This is not usually reflected in politics, although the region has had several women holding the post of head of government: Eugenia Charles, Dominica; Janet Jagan, Guyana; Portia Simpson Miller, Jamaica; Kamla Persad-Bissessar, Trinidad and Tobago; and, currently, Mia Mottley, Barbados. A number of women have held, and are also holding, ministerial portfolios, though women are still in the minority in Cabinet appointments. In recent general elections, it does appear that more women are entering the political arena. Guyana and Trinidad and Tobago, I learnt, have a quota for women candidates presented in general elections.

The CARICOM secretary general, Ambassador Irwin LaRocque, in his IWD remarks stated that the future is more promising when women are equally represented alongside men in leadership roles. As a note, CARICOM’s deputy secretary general is a woman, Ambassador Manorma Soeknandan of Suriname.

WOMEN WITH MINISTERIAL PORTFOLIO IN FOREIGN TRADE

As an IWD encore, considering the theme of women in leadership at the national, regional and multilateral levels, I thought that I would highlight the women in the CARICOM region who currently have ministerial responsibility of the foreign trade portfolios in their countries.

CARICOM Heads, at their 32nd Intersessional Meeting, considered action required to generate economic recovery with the aim to build back better post-COVID-19. Improving intra- and extra-regional trade will make a vital contribution to job creation and economic growth and development. The five female ministers holding this important portfolio are:

  1. Senator Kamina Johnson Smith, minister of foreign affairs and foreign trade, Jamaica. Minister Johnson Smith, an attorney-at-law, with qualifications in international relations and commercial law, was appointed to this post in 2016 and reappointed in 2020. She is the first woman to be assigned this portfolio in Jamaica. She has been a senator since 2009.
  2. Senator Paula Gopee-Scoon, minister of trade, industry and enterprise development, Trinidad and Tobago. Minister Gopee-Scoon is also a an attorney. In another administration, she was a member of parliament and minister of foreign affairs. She was assigned the trade portfolio in 2015 and retained it in 2020.
  3. Cheryl Sandra V. Husbands, MP, minister of foreign trade, Barbados. She was assigned this portfolio in 2018. Husbands has qualifications in international trade policy. She is a business consultant who was president of the Barbados Small Business Association and of the Caribbean Association of Small and Medium Enterprises.
  4. Sarah Flood Beaubrun, MP, minister responsible for external affairs in the Office of the Prime Minister, Saint Lucia. She was assigned this portfolio in 2016. She held other ministerial portfolios in the past. Minister Beaubrun was also Speaker of the House and deputy permanent representative of Saint Lucia to the United Nations in New York. She is also an attorney.
  5. Senator Wendy Colleen Phipps, minister of international trade, commerce, consumer affairs and labour, St Kitts/Nevis. She was assigned this portfolio in June 2020. A management consultant with training in mass communications, she was a vice-president of the OECS Business Council. In 2015, she was minister of health, community development, gender affairs and social services.

Women have been lauded for their leadership during this pandemic. We look to these women’s further leadership as the region strives to contain the COVID-19 virus and, indeed, endeavours to increase exports of goods and services in order to recover and build back better.

I am also taking this opportunity to salute all the women at the national and regional levels, in the public and private sectors, who are continuing the effort to make progress in intra- and extra-regional trade in these challenging times.

This article which was originally published by the Jamaica Gleaner was submitted by Elizabeth Morgan, Specialist in International Trade Policy and International Politics.

Export of Services – The next frontier for Caribbean Business

Caribbean economies have largely been primary producers with a focus on commodities for much of our history. Diversification has been a constant in our regional and national discourse with limited progress, notwithstanding our best efforts. Globalization has had a massive impact on our small economies, exacerbated by shocks such as the current coronavirus pandemic, not to mention the effects of climate change and financial crises.  What each crisis including the current one has taught us is that we must continue to innovate with our existing exports and identify alternative avenues to create jobs and generate foreign exchange.

The commoditizing and export of services represent a viable option. Whilst tourism remains important, the reality is, in terms of services we must think beyond tourists. The evidence says we must.  According to the Caribbean Tourism Organization, last year countries took a massive hit. For example, Grenada experienced a decline of tourist arrivals by an estimated 73%. The decline was 69.2%, and 71.4% for St. Lucia and Belize respectively. Due to Covid-19, tourism continues to endure a sustained depression.

While we accept that in the post-Covid world, we will continue to need tourism, the vulnerability of this sector tells us that we must revisit our traditional assumptions of what we can sell globally. This is with reference to services in addition to tourism.

According to the World Trade Organization, trade in services through all modes of supply is worth US $13.3 trillion. In the Caribbean, services account for approximately 65% of our Gross Domestic Product but this is largely driven by tourism. There is room for services to grow and become a greater generator of jobs and foreign exchange in areas such as music, fashion, animation and film, and outsourcing. For this transition to take place, we need to start where we have strength. Let’s look at commoditizing the creativity and talent of our people into viable commercial opportunities.

Taking music as an example, according to Goldman Sachs the global music industry is estimated to reach $131 billion by 2030. For our artistes to gain a piece of this, they not only need the creativity but the underlying business infrastructure to support them.  Caribbean Export with support of the European Union has provided a suite of services in this regard. This includes a Business of Music programme and music writing and production bootcamps. Initiatives such as these enhance technical capacity and provides the tools needed, in addition to talent, to capitalise from the digital music space. Coupled with helping link to international music executives through live and virtual showcases, the opportunity for our music creatives has been unprecedented.  However, to have sustained impact, efforts at the regional and national levels have to be complementary and we need to do much more.

Another area that offers potential is animation and film. These sectors saw a steady boost in global revenue over the past year, particularly during the COVID-19 lockdowns. The global animation industry in 2020 was worth approximately US $270 billion.  Streaming services continue to grow, providing a great opportunity for Caribbean content creators to showcase our unique Caribbean culture in amination, games and films. Caribbean Export is committed to providing the right support, that builds the capacity of our content creators to harness opportunities available to them in the global market.

Another area has to do with training, education and edutourism which can be help earn foreign exchange and create jobs.  There is an opportunity to establish centres of excellence in the Caribbean, to address such as the technical skills required for the creative industries. In terms of languages, almost every Spanish-speaking country in this Latin America and Caribbean region has a mini-industry with Spanish immersion programmes. We need to replicate this model for English-language training in our English speaking countries. We have seen the positive impact of the presence of medical institutions and branches of extra-regional universities in places like Grenada can have in creating jobs.

To diversify our services sector as well as giving a better chance to our businesses to compete, digitalisation is key. The COVID-19 pandemic underscores the need for a digital pivot. The very nature of providing a service necessitates a robust digital infrastructure, from marketing your service online, delivery of your service and of course receiving payment.  To support the diversification of the services sector in the Caribbean and to really unleash their profit potential these fundamentals must be in place. 

Looking ahead, Caribbean Export is committed to working with our partners to help realize the full potential of the services sector. It can be a vital pillar for our region’s economic revival and create jobs for our people.

5 formas efectivas de hacer crecer su negocio a través del marketing por correo electrónico

How many times have you seen an email in your inbox from an email list that you never subscribed to? Or tried unsuccessfully to unsubscribe from a brand’s email database? Not only did one of these phantom emails hit my inbox earlier this week, but I also tried, unsuccessfully, to unsubscribe from a company that was bombarding my inbox. For me, these engagements reiterated the need for businesses to review how they use email marketing as a sales tool. Today, I want to share some simple tips to get the most out of your email campaigns.

WHY EMAIL MATTERS

Some may not consider email marketing to be as ‘sexy’ as social media. But, for me it has been a great communication channel to nurture the relationship with our audience at Caribbean Export Development Agency (Caribbean Export). A digital marketing plan which integrates a diverse toolset, including email marketing, is critical. Here are several reasons why I think you should get excited about email marketing:

  • Control. It gives you much greater control than other channels like social media. Social media platforms can make any changes they wish, restrict your permissions, or worse, remove your company page without warning if they believe you have violated their terms of service. Email marketing is more of an owned channel or as described by Convince and Convert – granted media. You have almost complete control. Unlike social media, your email list belongs to you and therefore it is critical to ensure that you are moving most of your connections to your mailing list.
  • Cost effective. Whether you are a micro, small or medium-sized business, you must prioritise marketing spend now more than ever. With the increasing noise and cost in the social media space, a healthy email list can help deliver your message to an engaged audience at a fraction of the cost of other tools.
  • Reach. How often do you check your email? Daily? Multiple times a day? Once a week? An estimated 70% of active email accounts are checked by their owner every day. I review my inbox twice a day, my personal Facebook account, not so much.
  • Open Rates. In 2020, the average email open rate for all industries was 18.O%. That means you will reach almost one-fifth of your audience. Compare that to Facebook’s average organic post reach which was 5.2% in 2020. Clearly, email is the winner in this instance. Review the statistics for your industry on to see how you compare to your competitors.

Now that I have convinced you that email marketing is a critical tool in your arsenal, here are 5 tips on how to get the most out of your email campaigns.

5 WAYS TO IMPROVE YOUR EMAIL MARKETING

1. List Hygiene

Have you implemented double opt-in? Are you using a standard Email Service Provider (ESP) that incorporates an unsubscribe feature? How often do you clean your list?

How you build and manage your email list is critical to its health. Single opt-in provides a better user experience, because it is easier to sign up. But double opt-in, in my opinion, reflects a more committed subscriber and is better for your lists health as subscribers are more likely to engage with your content.

This is important because sending emails to inactive members will create deliverability issues. Internet Service Providers (ISPs) such as Hotmail, Outlook, Yahoo and Gmail, use engagement as a metric for deliverability. If a high percentage of subscribers never open your emails, it increases the probability of emails not reaching the inbox in the future i.e. going to spam folders. An option to prevent this is to try re-engagement tactics (a discussion for another day 😊) and if that fails, you should remove those contacts from your database.

Finally, if your business targets international subscribers, you must comply with anti-spam legislation such as GDPR and CAN-SPAM.

2. Segmentation

Segmenting your email list allows you to send highly targeted emails to subscribers. Sending the right email to the right person at the right time is critical to achieving the business outcomes that you want. Targeted campaigns improve open rates and conversions. But determining the best way to segment your list can be a huge task and will vary by sector. However, a few simple ways to segment your audience are by demographics, location, email engagement, website behaviour and personal interests.

3. Subject line Optimization and A/B testing

Are you optimising and testing your subject lines? One way to improve your open rates, is using engaging subject lines. Your subject line must entice the recipient to share their precious time with you by pausing to open and read your email. Ideally, it should include a benefit for the recipient, be short and to the point.

Our ESP (Mailchimp) also allows us to A/B test subject lines. If your ESP offers that feature, you should use it. If not, there are free and paid 3rd party tools you can use to evaluate and optimise your subject line copy. Here is a free one which grades your subject lines based on several factors including power words, word count, emojis, positive and negative words used.

Whichever tool you choose, use it as a guide, as your copy must still be industry appropriate and in line with your brand voice.

4. Email Automation

I have subscribed to a diverse range of email lists, and even though most send a Thank You email, few take the opportunity to grab their audience’s attention or encourage engagement. You have a great opportunity to share interesting content, like your most-read blog posts, or a coupon for a product or service you are offering.

At Caribbean Export we have updated our welcome blog automations to share some of our most popular recent posts. After all, a person signs up because they are interested in your business. Why make them wait a fortnight or longer to hear from you?

Most ESPs offer email automation which allows you to automate the sharing of content published on your website. The frequency, timing and style of the content are customizable and of course, the automation only sends if content is published. If you haven’t used it yet, check it out, it’ll make your life easier in the long-run!

5. Tools

Always be on the lookout for new tools to add to your toolbox as they can enhance your communications. One tool I really like is the count down timer. I use it with reminders for upcoming events.

For product sales, it can be used for limited time offers, sales alerts, etc. The countdown creates a sense of urgency and can be more compelling than just a Call To Action (CTA) button. The free version can be customised to reflect your branding, colours and fonts, or you could opt for the paid version to access additional features.

Think about how you can use this and other tools in your business to drive a desired action. Be open to testing new tools and dumping the ones that don’t serve your business needs.

Email marketing is a great way to connect with your audience and build your customer relations. Take some time to critically review how you are managing and engaging with your email list.

Ensure that your processes are optimized and do not miss the opportunity to nurture this important relationship. Try out some of my suggestions for improving your email campaigns and let me know how you get on. Good Luck!

Connect with me on LinkedIn to share your thoughts and let’s continue the discussion.

David Jessop | El pacto comercial UE-Cariforum una década después

More than a decade has passed since the EU-Cariforum Economic Partnership Agreement, or EPA, was negotiated and signed.

The free-trade agreement with the European Union marked the end of preferential arrangements for Caribbean commodity exports and established a new asymmetric, region-specific basis for trade with the EU’s now 27 member states. Linked to measures intended to encourage development and regional integration, it is mirrored in most respects in a post-Brexit UK-Cariforum EPA.

For the EU, the EPA brought to an end years of battling with the United States and others over the World Trade Organization-compatibility of its long-standing preferential arrangements for its former colonies, reflecting a concern that without development-linked free trade agreements, the erosion of its preference for its traditional partners in the African Caribbean and Pacific group, or ACP, would be unstoppable.

More significantly, leading European governments had a high level if unspoken strategic objective. by pursuing a successful region-specific arrangement with the Caribbean, the EU could begin to differentiate its changing political and economic thinking about Africa, the Pacific and the Caribbean.

The Caribbean saw it differently. A succession of forward-thinking Caricom Prime Ministers and trade negotiators wanted to use the EPA to establish a new and diversified export base in Europe to replace the region’s declining commodity exports and establish new ways to support development, deeper regional integration, and intra-regional trade.

Since then, the shape of global trade has changed dramatically, leaving the background and reasoning behind the EPA obscured in the wake of history, with only technical or contemporary media accounts to explain its role in the Caribbean’s slow post-colonial drift away from Europe.

The publication last month of a report prepared for the European Commission to evaluate the outcomes to date is therefore a valuable reminder and facts-based evidence of the extent to which the fundamentals of the relationship have changed and will probably continue to do so.

The 102-page study for the period 2008-2018 updates previous reports and considers performance against objectives in relation to development, the changing balance of trade, and the EPA’s impact on regional integration.

It is at its most interesting in relation to what it says about changing trade flows and, by extension, how the EU-Caribbean relationship may adapt, even fade, in the coming years. It provides one of the best general analyses of the present EU-Caribbean trade trajectory and a reason to ask whether post-pandemic, new US thinking may accelerate the regional trend away from trade with Europe?

Tellingly, the report notes that in 2018 Cariforum exports to the EU stood at €3.9 billion (US$4.7 billion) while exports from the EU were €5.1 billion (US$6.1 billion), resulting in an overall figure “practically the same as the total trade in 2008 at €9.5 billion”. It also observes that the average annual growth rate of Cariforum exports to the EU for the decade after the implementation of the EPA was just 2 per cent, while EU exports to Cariforum rose by 4 per cent.

Its authors make the point that while 18 per cent of Cariforum imports came from the EU in 2007, by 2018 this had fallen to 12 per cent. Indicating a lack of EU commercial interest in the Caribbean and little European awareness of the EPA, they note that over the same decade, Caribbean imports from countries other than the EU grew at a faster rate.

Cariforum imports of goods from the US in 2018, they observe, were almost four times larger than the value imported from the EU, because of the US’s efficiency in logistics, ease of doing business, geographical distance, language, and transport costs. They also recognise that imports from China are growing rapidly.

Interestingly, the report attempts to review the notoriously difficult to analyse trade in services with the Caribbean. Despite the sector accounting for 35 per cent of Cariforum GDP in 2017 and providing value-added GDP in some countries by as much as 75 per cent, the study provides evidence that the level of EU engagement is ‘largely similar to what it was at the start of the implementation of the EPA’ and Cariforum’s share of services exports to Europe had decreased.

On direct EU investment, the message is more complicated. While the report indicates that Caribbean countries ‘seem to especially stand out for receiving very high levels of FDI in relation to the size of their economies’, it is unable to disentangle the use by multinationals and others of special purpose entities to route financial transactions through Caribbean jurisdictions.

More helpfully when it comes to Brexit, it attempts to draw some preliminary conclusions by disaggregating the UK figures from those of the EU28. Observing that the UK has always been a major trading partner of Cariforum due to historical ties and the region’s use of the UK as an entry point into the EU market, it expresses uncertainty about whether trade flows will now decrease or reroute.

It notes that the share of Cariforum-UK trade has fluctuated between 20 per cent and 10 per cent of total Cariforum-EU trade but indicates that this too has been slowly decreasing to below the pre-EPA level. UK trade, it says, constitutes 11 per cent of total EU exports to Cariforum and 13 per cent of total EU imports and in total amounted to €1.6 billion (US$1.9 billion) In 2018.

Despite the EPA’s heavy institutional structures for political, parliamentary, and civil society dialogue and oversight, the report’s authors suggest that such bodies have not ‘focused enough’ on finding solutions to specific situations affecting individual countries. Despite it being hard to overstate the future importance of services exports from the region, they add, a proposed Committee on Trade in Services has not been established.

The report deserves a full reading. It asks questions about issues that the private sector would take as givens. Most notably, in an almost throwaway line, the report observes “the lack of a joint mechanism for EPA monitoring”. This means its authors say, “there re are no formal benchmarks or indicators to assess the effectiveness of the EPA”, affecting the extent to which the EU and the Caribbean have objective data on which to make decisions regarding the operation of the EPA.

This is a fundamental question which requires an answer. Without a public measure any further decline in the Caribbean’s relationship with Europe will go unnoticed.

Link to EU-Cariforum study – https://trade.ec.europa.eu/doclib/docs/2020/february/tradoc_158657.pdf

This article was originally published by the Jamaica Gleaner . It was written by David Jessop, a consultant to the Caribbean Council. Email: david.jessop@caribbean-council.org. To access previous columns, visit: www.caribbean-council.org/research-analysis.

Hacer un negocio de la música

The Caribbean is bursting with creative talent, much of which is in the music industry. Often, musicians start out honing their talent as a hobby, and struggle financially to make a viable living. Most Caribbean musicians use live performances as their main route to revenue generation, unlike artists outside of the region who have often been able to capitalise on generating revenue streams from digital platforms.

To support the artists’ leveraging the digital space, Caribbean Export Development Agency has hosted a number of initiatives, as part of the 11th EDF Regional Private Sector Development Programme (RPSDP). Since 2017, the Agency has worked with Business Support Organisations (BSOs) specifically the Coalition on Services Industries (CSIs) from across the region to enable those involved in the industry to participate in the Business of Music (BOM) online self-learning platform and face to face workshops. In 2019, a new dimension was developed to this training involving instructor led webinars followed by a two-day workshop in collaboration with COSCAP (Copyright Society of Composers, Authors and Publishers Inc.) and the National Cultural Foundation (NCF) and the ‘knowledge company’ Music Ally Ltd in Barbados. Most recently, in the midst of the coronavirus pandemic, the Agency embarked upon a 60-hour Virtual Regional Song Writing and Music Production Training workshop. Supporting the development of artists beyond hobby-type endeavours was a key driving factor for this workshop.

Coordinated by Herric Horne, a Vincentian Music Executive and owner of Island Network Inc., a full-service artist management and music development company, the workshop hosted some 35 singers, songwriters, and producers from across the Caribbean.

“There was a lot of enthusiasm when it came to certain topics such as how do you monetize your intellectual property and create different revenue streams. The struggle is to get the mindset of the practitioner right, get them to understand that we operate a business and understand how to run the business. In a global context, we are rich in talent like any geographic location but in terms of business opportunities, we need to be on a bigger playing field with the bigger players to yield that return that is due to us,” Mr. Horne said.

The Virtual Regional Song Writing and Music Production Training workshop was developed in collaboration with the OECS Competitive Business Unit and resulted in some 23 tracks being produced for a virtual showcase aimed at international music executives.

To develop the tracks, cross-genre collaboration was encouraged with participants; artists, producers, songwriters from different countries working together and leveraging skills of expert producers. Lead tutor Shamel Hughes (USA) together with De Red Boyz (Barbados), Parry Jack (St. Vincent and the Grenadines based in USA), Kasey Phillips (Trinidad and Tobago based in USA), Krishna Lawrence (Dominica), Christopher Birch (Jamaica) and Grammy Award winning Marcus Allen and Andrew Clifton (USA) proved invaluable for participants .

Musician – Jamila Falak
Artist/Producer- Latin Will
Singer/Songwriter -Leigh Philips
Songwriter/Artist-Shelly Alfred
Singer/Songwriter- VANiLLA
Producer/Singer/writer -Andrez Bascombe

Songwriter – Mahalia Cummins

Latin Will, an artist and producer from the Dominican Republic, shared that production was his most favourite part of the training. Participants were placed in seven groups and rotated daily to work with seven expert industry producers. “I’m a mix engineer but I learned from some amazing mixing and mastering tricks from our tutor Shamel Hughes. I also learnt how to work with people with many different dialects.” He also added, “Caribbean music is one of the most influential around the world and it is the most underappreciated.”

Expert producer Krishna ‘Dada’ Lawrence whose portfolio includes the 2019 road march hit, ‘Famalay’ which feature soca sensations Machel Montano, Skinny Fabulous and Bungi Garlin worked directly with participants to produce a cadre of songs and had nothing but praise for the workshop’s organisers. “I think it’s important that we continue those training camps. Collaboration within the islands is paramount to the development of the Caribbean music industry. We are all unique; sharing and working with each other is the best way to sell and promote our uniqueness,” he said, adding that attention also needed to be given to legalities, ownership, copyright and the fundamentals of running a company.

The 23 tracks were produced with videos and aired virtually in a live music showcase in December 2020 to major record labels, promoters, music scouts, distributors from the US, Europe and Asia. “We are targeting buyers from Europe, North American, Africa and the hip hop industry. Trying to maximize the returns on these intellectual properties is our first step, then we will come back and look at developing artists from the camp, assigning them songs and building their careers. Everyone stands to benefit, artists, producers, song writers, as all rights have been assigned to them.”

The response to the showcase was extremely positive, with requests for follow-up meetings and negotiations with international music distributors. As we approach the 2nd year of the pandemic, we look ahead to continued collaboration and support making a business out of music.

elizabeth morgan | CARICOM: Perspectivas comerciales y económicas inciertas para 2021

The Caribbean Community’s (CARICOM’s) outlook for 2021 could be a very short article; summary – not so good. The year 2021 is starting with general uncertainty about the trade and economic outlook. Much will depend on how countries are able to contain COVID-19 and the availability of vaccines to most countries enabling them to return to a fair level of normality. Reports indicate that tourism will be slow to recover as will global oil demand. In addition, St Vincent and the Grenadines is on La Soufriere volcano watch and political unrest continues in Haiti.

The year 2020 began with some expectation for recovery and growth. By March, with the spread of COVID-19, travel restrictions and the lockdown of economies, years of progress were reversed, especially in the Caribbean, where several countries have 20 per cent or more of their gross domestic product (GDP) coming from tourism. From September to October, there was inclement weather in some islands resulting in damage to agriculture and infrastructure. With the exception of Guyana, which registered growth of about 31 per cent due to oil production, most CARICOM member states saw a severe decline in their GDP.

CARICOM’s external trade with third countries and intra-regional trade for 2020 are difficult to assess, at this point, as statistics for all the member states are not yet available. However, for principal trade partner, the USA, in 2019, CARICOM imported goods valued at US$14.04 billion and exported US$6.23 billion. Figures from the US Census Bureau for January to November 2020 show that CARICOM goods imports were valued at US$10 billion, while exports were valued at US$4.41 billion. With the December figures added, the value of the CARICOM-US merchandise trade could see a decline. The Statistical Institute of Jamaica’s Merchandise Trade Bulletin shows that Jamaica’s trade for January to August 2020 registered an overall decline and the trend is expected to continue to December.

In trade in services, tourism mainly, available figures for The Bahamas, from January to August 2020 show that tourist arrivals were about 35 per cent of the 2019 figure. For Jamaica, from January to October 2020, arrivals were 34 per cent of the 2019 figure. This was the general trend for CARICOM countries dependent on tourism. For those countries with petroleum as a principal industry, there was also a decline, as demand was reduced due to restrictions in travel and production.

For 2020, CARICOM countries were focused on containing the spread of COVID-19, trying to rescue economies, deliberating on building back better and the role which the CARICOM Single Market and Economy (CSME) would play.

DIM OUTLOOK FOR 2021

By October 2020, international organisations, such as the International Monetary Fund (IMF), were forecasting the outlook for 2021. In the IMF Blog, the forecast was for a recovery of four per cent for the Caribbean countries dependent on tourism from a decline of nearly 10 per cent in 2020 and 3.8 per cent for the commodity exporters from a decline of 0.6 per cent.

Although there was optimism about vaccines at the end of 2020, the reality check is that 2021 has not had such a great start. COVID-19 cases are increasing in the USA, Canada, United Kingdom (UK), European Union (EU) member states, China, India, Africa, and in Latin America and the Caribbean with new strains. In fact, Latin America and the Caribbean is listed as one of the worst affected regions. There are further restrictions in some countries. Canada and the UK are now requiring persons entering their countries to have a negative COVID-19 test. This places an added burden on Caribbean countries which must now provide these tests on a larger scale.

Vaccines have been approved and are being used in the USA, Canada, UK, EU, and Australia. Japan is seeking approval of the Pfizer vaccine by February. China, Cuba, India and Russia have developed and are using their own vaccines. Interestingly, New Zealand has declared that it is COVID free.

CARICOM and other developing countries have signed to the World Health Organization’s (WHO’s) COVID-19 Global Access Facility (COVAX) for access to vaccines. Under COVAX, it seems that two billion doses of the Pfizer vaccine have been secured already for global distribution in 2021, with another 1.3 billion to come in 2022. The first doses will target 20 per cent of beneficiary countries. The director of the Pan American Health Organization (PAHO), the regional arm of WHO, Dr Carissa Etienne, has announced that vaccines’ distribution will commence in the Americas in March. It should reach CARICOM countries by April. From media reports, however, it seems that a very small amount of a COVID vaccine was available in Barbados recently.

GLOBAL INEQUALITIES

As with many things, the inequalities in the global community are being starkly demonstrated in the availability of vaccines. The developed countries will be the first to have access to these vaccines, and the developing countries will be on the bottom rungs of the ladder. For successful global recovery, all countries need to recover, not only a few.

This article which was originally published by the Jamaica Gleaner was submitted by Elizabeth Morgan, Specialist in International Trade Policy and International Politics.