- 1. Market Opportunities in the Caribbean Berletta Forrester
Export Promotion Manager 2011 February 22
2. Presentation Outline
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- CARICOM Intra-Regional Trade
- Part 2: French Caribbean Outermost Regions(FCORs)
- Summary, Next Steps & Closing
3. 4. CARIFORUM Forum Of Caribbean States
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- 14 Member Countries of CARICOMplus the Dominican Republic.
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- St Vincent and the Grenadines
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:
-
- Petroleum products (gasoline, lubricating oils, kerosene,
propane and butanes
9. CARICOM Intra Regional Trade
- Differences in production and export structures
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- T& T economic activity concentrated in oil and natural gas
sector
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- Jamaica & Suriname large mineral sectors
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- Guyana & Belize economy dominated by agriculture
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- 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:
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- Market importance in terms of size, per capita income,
purchasing power
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- Importance in terms of culture, similar uses, purchasing
patterns
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- 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
- Currency: Trinidad and Tobago dollars (TTD)
- Exchange rate: US$ 1 = TTD 6.33
13. Trinidad the Jamaican perspective
- Main exporter within CARICOM
- Very high per capita income
- Demand for skilled labour
14. Guyana
- Currency : Guyanese dollar (GYD)
- Exchange rate: US $1 = GYD 204
15. Guyana the Jamaican perspective
- Possibility for joint ventures with furniture sector
16. Suriname
- Currency: Surinamese dollar (SRD)
- Exchange rate: US $1 =SRD 2.745
17. Suriname the Jamaican perspective
- Transportation challenges
18. Barbados
- Currency: Barbadian Dollar (BBD)
- Exchange rate: US $1 = BBD 2
19. Barbados the Jamaican perspective
- Imports almost everything that is consumed
- Very high number of high-income tourists
20. Dominican Republic
- Currency: Dominican peso (DOP)
- Exchange rate: US $1 = DOP 36.92
21. Haiti
- Exchange rate: US $1 = 41.19 HTG
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- Machinery and transport equipment
22. Belize
- Currency: Belizean Dollar (BZD)
- Exchange rate: US $1 = 2 BZD
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- Machinery and transport equipment
23. The Organization of Eastern Caribbean States (OECS
- The OECS currently has nine members, spread across the Eastern
Caribbean.
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- St Vincent and the Grenadines
24. What are the key Market Opportunities? 25. Export
Opportunities - Goods
26. Manufactured goods
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- Paper products & paperboard
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- Furniture, lighting, signs
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- Beverages, spirits, vinegar
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- Meat, fish & sea-food food preparations
Jamaica Promotions Corporation (JAMPRO) 27. Chemicals
- Perfumes, cosmetics, toiletries
Jamaica Promotions Corporation (JAMPRO) 28. Baked products
- Strong demand for baked products value of CARICOM Trade in
baked products US $108.5mn (2009)
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- Toasted bread and similar toasted products
- Most dynamic CARICOM importers of baked products (2001-
2009)
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- Suriname (19.2% annual growth rate)
29.
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
32. Export Opportunities - Services
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- Business Development services
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- Construction-related services
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- Production Services for the Entertainment Industry
33. Services Exports - Major Challenges
- Lack of institutional support
- Diminished export competitiveness due to rising costs
- 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
- Public Private Partnerships
- Institutional and Network Strengthening
- Export Strategy Development
- Enhancing Firm-level Competitiveness
- Strengthening Brand Jamaica
35. Transport and Logistics
- 3 lines go to the Eastern Caribbean:
- Amerijet air cargo services to the Caribbean (except Cuba)
Jamaica Promotions Corporation (JAMPRO) 36. Market Access
Challenges
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) Type Country/Group Product
Categories Import Licensing OECS Agricultural and food products
from MDCs Barbados Coconuts and other food products, coin operated
amusement machines Suriname All imports from CARICOM Import quotas
Grenada Beer and malt from regional producers 40. Non-Tariff
Barriers Jamaica Promotions Corporation (JAMPRO) Type Country/Group
Product Categories Anti-dumping and countervailing measures
Barbados Milk & cream manufactured in Trinidad Safeguards
Barbados Pasta Grenada Brewery products, wheat flour, feeds, wooden
products St. Lucia Soft drinks, beef patties 41. How to resolve
instances of non-tariff barriers
- Companies need to report any instances of non-tariff barriers
to:
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- Ministry of Foreign Affairs & Foreign Trade
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- Industry associations including the PSOJ, JEA, JMA, JAS
Jamaica Promotions Corporation (JAMPRO) 42. Q & A
Session
43. French Caribbean Outermost Regions (FCORs)
44. French Caribbean Outermost Regions (FCORs)
- Located in the Caribbean Basin but belong to France
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
- Sophisticated distribution system for food products
- Strong competition among the four larger wholesalers.
- Extensive facilities for food storage, handling and
distribution
Jamaica Promotions Corporation (JAMPRO) 47. Market structure -
Martinique
- Most important retail food outlets: supermarkets and
hypermarkets
- 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 contribute70% of revenues
- Followed by trade (15%) and construction
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- Energy-generated products, intermediate goods, car industry,
agricultural and food industry products, equipment,consumer
goods
49. Market structure - Guadeloupe
- 4 most important food distributors also own supermarkets
-
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- Groupe Primisteres Reynoird
- 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
- 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) 51. French Guiana
- Located on the South-American Continent
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- Gold mining, fishing, rice culture, lumber, tourism & the
aerospace industry
52. Background on the EPA
- Based on reciprocal trade between the EU & CARIFORUM
- Entails liberalization in goods and services under specific
principles and conditions
- Removes barriers to most CARIFORUM exports in goods and
services to the EU (exceptions being sugar and rice)
- Includes improved rules of origin , allowing for intermediate
products from outside the region
53. What are the benefits from increased trade with FCORs?
Jamaica Promotions Corporation (JAMPRO) 54. Total exports from
CARIFORUM to FCORs 2006 - 2008
55. CARI-FORUM Exports to FCORs by Country - 2006 2008 (US$) 56.
CARIFORUM Exports to FCORs by Category - 2006 2008 (US$) 57. What
products does Jamaica currently export to FCORs?
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- Lobster, shrimp and other crustaceans
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- Farm products such as fruit
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- Beverages (juices, aerated water, beer, fermented beverages,
other wines, brandy)
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- Pepper sauce, soups and food preparations
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- Baked products (bread, pastries)
- Beauty/ Make-up Preparations
58. Export opportunities to FCORs - Goods
- Agricultural & sea-food products
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- sauces, spices, condiments, jams, jellies
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- Food preparations, mineral waters, beers, aerated waters
- Paper and paperboard products
59. Priority Area for Export Domestic Capacity Market Overview
60. Priority Area for Export Domestic Capacity Market Overview 61.
Priority Area for Export Domestic Capacity Market Overview 62.
Priority Area for Export Domestic Capacity Market Overview 63.
Priority Area for Export Domestic Capacity Market Overview 64.
Priority Area for Export Domestic Capacity Market Overview 65.
Priority Area for Export Domestic Capacity Market Overview 66.
Priority Area for Export Domestic Capacity Market Overview 67.
Export opportunities to FCORs -Services
- Education- Technical and Vocational Services
- Cultural Industries-music ,recreational, cultural and sporting
services
- Tourism Customer Services Training
68. Priority Area for Export Domestic Capacity Market Overview
69. Priority Area for Export Domestic Capacity Market Overview 70.
Priority Area for Export Domestic Capacity Market Overview 71.
Priority Area for Export Domestic Capacity Market Overview 72.
Priority Area for Export Domestic Capacity Market Overview 73.
Market Access Issues
- EU standards and regulations controlling plant and animal
health, product quality, processing, food safety, packaging and
labelling
- Fresh fruits and vegetables must meet quality standards and
minimum allowable pesticide residue requirements of the EU, as well
as specific phyto-sanitary restrictions and requirements
Jamaica Promotions Corporation (JAMPRO) 74. Market Access
Issues
- Agro-business exporters face tighter minimum residue levels for
exporting with trace elements of fertilizers to the EU
- Dairy exporters continue to have difficulty, because of issues
including rules of origin and traceability, in accessing EU
markets
- France allows the Outre-Mer Departments to apply a special
tariff on imports known as the Octroi de Mer tariff and Additional
Octroi de Mer tariff at their discretion
Jamaica Promotions Corporation (JAMPRO) 75. Challenges/Barriers
to Trade -FCORs
- Visa & associated entry requirements
- Challenges in meeting French/EU standards (qualityissues and
documentation requirements)
- Insufficient knowledge of the French system (tax structure,
market structure, bureaucracy)
- Absence of in-market distributor/representative
- Inability of SMEs to fill container critical mass required to
reduce average shipping costs
- French culture and perceptions that French products are the
best
76. Overcoming barriers to trade - FCORs Barrier Suggested ways
to overcome Language CARIFORUM & FCOR BSOs to devise strategies
to facilitate language training to support trade. This can be done
through each islands official investment authority of export
association Transportation availability and cost Regional and
national governments and private sector need to come together to
discuss creative ways of makingregional transportation more
available and economical by combining resources to provide such
transportation or guaranteeing loansand helping to devise plans so
that the private sector can provide the services. 77. Overcoming
barriers to trade - FCORs Barrier Suggested ways to overcome EU
Regulations & Standards Increased capacity of CARIFORUM BSOs
and national Bureaux of standards and testing facilities to meet
EU/French standards Limited knowledge of market conditions/Lack of
information Provision of information booklets CARIFORUM and FCOR
Official Investment Authorities /Business Councils with updated
market trends, products, suppliers, etc. 78. Transportation Options
to FCORs Jamaica Promotions Corporation (JAMPRO) SHIPPING OPTIONS
TO FCORS AIRLINE OPTIONS TO FCORS Martinique Guadeloupe Martinique
French Guiana CMA/CGM - Main Liner Caribbean Caribbean Connection
on Air Airlines to Airlines to France or Antigua or St. Barbados
with Air Caraibes Maarten with next day LIAT in next day LIAT
connection Guadeloupe connection via or Antigua (4 Martinique
days/week) 79. Q & A Session
80. Summary & recommendations
81. Key Points
- Do your research & design your marketing strategy
- It is of vital importance to invest time and to make frequent
contact with buyer
- We should not sell what we produce, we ought to produce what we
can sell
- Acquaint yourself with the rules of the target market
- Explore opportunities not only for buyingand selling, but also
for joint ventures and strategic alliances
82. Next steps Producers/Exporters
- Fill the information gaps
- Initiate more personal contact with firms that are
import-ready
- Proactive business strategy
83. Next steps JAMPRO
- Establish networks and partnerships with entities in FCORs
- Facilitate contacts with the Chambers of Commerce and Regional
Councils in the FCORs to initiate the process of doing
business
- Make arrangements to have specific industry representatives
present data and market opportunities
- Organize Trade Missions to these markets
- Host incoming buyers from these markets
84. Upcoming Events
- Trade Mission to the Bahamas - April
- Trade Mission to the French Caribbean July
- Design CaribbeanGift & Craft Trade Show in the DR
September
Jamaica Promotions Corporation (JAMPRO) 85. Thank You!