Market Opportunities in the Caribbean Berletta Forrester Export Promotion Manager 2011 February 22

1. Market Opportunities in the CaribbeanBerletta ForresterExport Promotion Manager2011 February 22

2. Presentation Outline Part 1: CARIFORUM • Background • CARICOM Intra-Regional Trade • Country Profiles - MDCs • Export Opportunities • Commodities • Services Part 2: French Caribbean Outermost Regions (FCORs) • Background • EPA , Country Data • Export Opportunities • Commodities • Services Summary, Next Steps & Closing

4. CARIFORUM – Forum Of Caribbean States • CARIFORUM • 14 Member Countries of CARICOM plus the Dominican Republic. • Antigua & Barbuda • Bahamas • Barbados • Belize • Dominica • Grenada • Guyana • Haiti • Jamaica • Montserrat • St. Kitts & Nevis • St Vincent and the Grenadines • Suriname • Trinidad and Tobago

5. CARICOM’s Intra-Regional Trade Policy: CSME • 2001 - Revised treaty of Chaguaramas established the Caribbean Community and the CARICOM Single market and Economy • 2006 – 12 Member states formally implemented the CARICOM Single Market (CSM)

6. Implications of CARICOM Single Market

7. CARICOM Intra-regional and Extra-Regional Trade - 1996 - 2004 US$ billions & percent 81.9

8. CARICOM Intra-Regional Trade • More Developed Countries accounted for 93% of Intra regional trade • Major domestic exports over the period included: • Cigarettes • Petroleum products (gasoline, lubricating oils, kerosene, propane and butanes • Aerated beverages • Sugar cane (raw) • Building cement

9. CARICOM Intra Regional Trade • Differences in production and export structures • T& T – economic activity concentrated in oil and natural gas sector • Jamaica & Suriname – large mineral sectors • Guyana & Belize – economy dominated by agriculture • OECS countries, Bahamas and Barbados – mainly service-based economies • Past decade, T&T’s exports to CARICOM grew by average 11% per year and CARICOM now absorbs 20% of that country’s total merchandise exports • Barbados and Jamaica have lost market share in the regional market

10. Factors in Market Selection • Solicit information on market potential and make decision based on the data: • Market importance in terms of size, per capita income, purchasing power • Importance in terms of culture, similar uses, purchasing patterns • Competing products, market conditions, distribution mechanisms, price, promotional spend and types of promotion • Regulation governing imports and marketing of products

11. CARICOM Countries – Selected Indicators

12. Trinidad & Tobago • Population: 1,228,691 • Currency: Trinidad and Tobago dollars (TTD) • Exchange rate: US$ 1 = TTD 6.33 • Major imports • Mineral fuels • Lubricants • Machinery • Transportation equipment • Manufactured goods • Food • Chemicals

13. Trinidad – the Jamaican perspective Oil-rich Very dynamic economy Main exporter within CARICOM Very high per capita income Demand for skilled labour

14. Guyana • Population: 748,486 • Currency : Guyanese dollar (GYD) • Exchange rate: US $1 = GYD 204 • Major/principal imports • Manufactured goods • Machinery • Petroleum • Food

15. Guyana – the Jamaican perspective • Export potential • Manufactured goods • Food • Soaps • Possibility for joint ventures with furniture sector

16. Suriname • Population: 486,618 • Currency: Surinamese dollar (SRD) • Exchange rate: US $1 =SRD 2.745 • Major imports • Capital equipment • Petroleum • Food stuff • Cotton • Consumer goods

17. Suriname – the Jamaican perspective • Export potential • Food products • Consumer goods • Source of raw material • Transportation challenges • Growing market

18. Barbados • Population: 285,653 • Currency: Barbadian Dollar (BBD) • Exchange rate: US $1 = BBD 2 • Major Imports • Consumer Goods • Machinery • Food products • Construction material • Chemicals • Fuel • Electrical components

19. Barbados – the Jamaican perspective Non-tariff barriers Its strength is service Imports almost everything that is consumed Very high number of high-income tourists

20. Dominican Republic • Population: 9,823,821 • Currency: Dominican peso (DOP) • Exchange rate: US $1 = DOP 36.92 • Major imports • Food products • Petroleum • Cotton & fabrics • Chemicals • Pharmaceuticals

21. Haiti • Population: 9,719,932 • Currency: Gourdes (HTG) • Exchange rate: US $1 = 41.19 HTG • Major imports: • Food • Manufactured goods • Machinery and transport equipment • Fuels • Raw Material

22. Belize • Population: 314,522 • Currency: Belizean Dollar (BZD) • Exchange rate: US $1 = 2 BZD • Major imports: • Food & Beverages • Tobacco • Manufactured goods • Machinery and transport equipment • Fuels • Chemicals • Pharmaceuticals

23. The Organization of Eastern Caribbean States (OECS • The OECS currently has nine members, spread across the Eastern Caribbean. • 7 have full membership: • Antigua & Barbuda • Dominica • Grenada • Montserrat • St Kitts & Nevis • St. Lucia • St Vincent and the Grenadines

24. What are the key Market Opportunities?

25. Export Opportunities - Goods • Manufactured goods • Light manufacturing • Agro-processing • Food & Beverages • Baked products • Aqua-culture • Chemicals • Soaps, cleaning products

26. Manufactured goods • Light manufacturing • Paper products & paperboard • Furniture, lighting, signs • Plastics • Rubbers • Agro-processing • Beverages, spirits, vinegar • Meat, fish & sea-food food preparations Jamaica Promotions Corporation (JAMPRO)

27. Chemicals • Organic chemicals • Soaps, lubricants • Perfumes, cosmetics, toiletries • Pharmaceutical products Jamaica Promotions Corporation (JAMPRO)

28. Baked products • Strong demand for baked products – value of CARICOM Trade in baked products – US $108.5mn (2009) • Sector includes • Communion wafers • Sweet biscuits • Waffles & wafers • Toasted bread and similar toasted products • Crisp bread and • Gingerbread • Most dynamic CARICOM importers of baked products (2001- 2009) • Suriname (19.2% annual growth rate) • Haiti (10.1%) • Belize (8.6%)

29. Export of services

30. Service delivery within Caribbean

31. Export of services • Anecdotal evidence suggests marked increase in level of intra-regional services trade over the last decade • Industries include : • Finance • Insurance • Tourism • Retail • Entertainment • Business services

32. Export Opportunities - Services • Business Development services • ICT • Construction-related services • Production Services for the Entertainment Industry

33. Services Exports - Major Challenges Lack of institutional support Diminished export competitiveness due to rising costs Lack of entrepreneurship Deficiency in knowledge and skills in export marketing of services Absence of information about related export market opportunities and, generally, how to realize this potential.

34. Services Exports - JAMPRO’s Role Awareness Building Public Private Partnerships Institutional and Network Strengthening Export Strategy Development Enhancing Firm-level Competitiveness Targeted Trade Promotion Strengthening Brand Jamaica

35. Transport and Logistics • 3 lines go to the Eastern Caribbean: • Seaboard Jamaica • Seafreight • CFS • Amerijet air cargo services to the Caribbean (except Cuba) Jamaica Promotions Corporation (JAMPRO)

36. Market Access Challenges • Language • Dom Rep • Haiti • Tariff Barriers • Non-Tariff Barriers Jamaica Promotions Corporation (JAMPRO)

37. Tariff Barriers • Some member countries still use trade charges e.g. customs charges, stamp duties on imports of CARICOM origin • Some countries apply discriminatory rates of consumption taxes • Barbados imposes stamp duty of 10% • T&T – excise duties on cigarettes, alcoholic beverages, tobacco and cigars • OECS – import duties on rums Jamaica Promotions Corporation (JAMPRO)

38. Non-Tariff Barriers • Non-tariff barriers - widely used in CARICOM countries. • While some countries, e.g. TNT, have removed non-tariff barriers on imports from CARICOM countries, others, such as Barbados and the OECS countries, still maintain an array of such measures. • Alcoholic beverage companies face a non-transparent licensing regime for exporting to Antigua Jamaica Promotions Corporation (JAMPRO)

39. Non-Tariff Barriers Jamaica Promotions Corporation (JAMPRO)

40. Non-Tariff Barriers Jamaica Promotions Corporation (JAMPRO)

41. How to resolve instances of non-tariff barriers • Companies need to report any instances of non-tariff barriers to: • JAMPRO • Ministry of Foreign Affairs & Foreign Trade • Industry associations including the PSOJ, JEA, JMA, JAS Jamaica Promotions Corporation (JAMPRO)

42. End of Part 1 Q & A Session

43. Part 2 French Caribbean Outermost Regions (FCORs)

44. French Caribbean Outermost Regions (FCORs) • Located in the Caribbean Basin but belong to France • Martinique • Guadeloupe • French Guiana

45. Martinique • Significant imports from T & T • Main sectors: trade and commercial services, administrative services, construction and industrial activities • Consumer trends: Tastes of consumers are greatly influenced by the French market

46. Market structure - Martinique WHOLESALE SECTOR • Sophisticated distribution system for food products • 5 major food importers • Sogedial Martinique • Rene Lancry • S.A. Multigros • George de Negri • Sodicar • Strong competition among the four larger wholesalers. • Extensive facilities for food storage, handling and distribution Jamaica Promotions Corporation (JAMPRO)

47. Market structure - Martinique RETAIL SECTOR • Most important retail food outlets: supermarkets and hypermarkets • 5 major hypermarkets • Euromarche • Hyper U • Carrefour • PremisteresReynoird • Le Phare • Also large number of small country shops, green grocers and superettes Jamaica Promotions Corporation (JAMPRO)

48. Guadeloupe • 1 of the 5 richest Caribbean islands • Service sectors contribute 70% of revenues • Followed by trade (15%) and construction • Principal imports: • Energy-generated products, intermediate goods, car industry, agricultural and food industry products, equipment, consumer goods

49. Market structure - Guadeloupe WHOLESALERS/DISTRIBUTORS • 4 most important food distributors also own supermarkets • Groupe Primisteres Reynoird • Groupe SAFO • Groupe Hayot • Groupe Le Metayer • Many large-scale retailers import in large volumes, primarily from France. • Independent wholesalers control the majority of food imports – most important contacts for exporters. They usually do not own/operate retail businesses Jamaica Promotions Corporation (JAMPRO)

50. Market structure - Guadeloupe RETAIL SECTOR • Supermarket sector – very well developed • Large number of supermarkets and hypermarkets, most concentrated in and around Pointe-a-Pitres, Les Abymes and Baie Mahault • Consumers are brand loyal to imports and prefer to buy imported products over locally manufactured products Jamaica Promotions Corporation (JAMPRO)