Cristina Nunez, Artesanias produces handmade crafts made of natural and biodegradable materials, coconut jÃcara (calabash), cow horn, cow bone, wood cutouts, resin, amber and larimar. It is a whole cycle of work ranging from the collection of raw materials, design, elaboration, and sale of items placed in Dominican shops and gift shops, as well as small sales in Italy, Spain and rich port.
CHOUBLAC is a small Haitian company founded in 2010 under the umbrella of Caribbean Island Apparel, S.A. CHOUBLAC specializes in exquisite local handcrafted goods. The company’s mission is to promote sustainable change in Haiti’s artisan communities through innovation, design guidance, high standards of quality control and socially responsible trade practices. CHOUBLAC seek out, organize, and mobilize the creative talents of Haiti’s artisans, helping them to achieve beautiful products with lasting results. The company has two outlets in Haiti and have thrived over the past ten years to provide a reliable market for these artisans. Over 500 artisans within these communities benefit from CHOUBLAC business and many groups are mainly women.
PRODUCTS:
The CHOUBLAC Collection is unique and distinguishes itself from the usual Haitian crafts because the company constantly spends time innovating and improving the quality standards with the artisans and providing design guidance based on the current market trends. All CHOUBLAC’s products are skillfully handcrafted and represent the very best quality in their category. The company promotes economic growth in the communities in which it works and endeavors to enhance the image of Haiti through the beauty of its crafts and the talent of its people.
Combining chocolate with the finest ingredients XOCOLAT makes an exquisite variety of chocolates. Since 1993 -1999 the company has specialized in presenting and decorating its products to meet the demanding needs of its customers. In 2000 it began to enter the corporate market with customized products for the hotel and retail market. By 2005 Xocolat incorporated the pastry line using chocolate as its main ingredient.
The company operates a specialty chocolate store at the centre of Santo Domingo, with complete lines of different products all using their own chocolate brand Xocolat to produce beverages, bonbons, truffles, chocolates cakes and many different novelties.
PRODUCTS:
Xocolat produces chocolate bars for hotel amenities and gift shops including:
Caribbean flavours chocolate bars, 48 grs from origins Hispaniola cacao and 5 flavours distinctive from our Caribbean islands
Traditional bars 48gr, 5 flavours, pure flavours of our 100% Hispaniola cacao
Rustic aged Dark chocolate bars 22gr, 4 flavours, first grind process chocolate, purest form of eating raw chocolate, very dark and
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.
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.
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!
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
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:
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
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.
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:
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.
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.
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.
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.
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.
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.
