1. Market Opportunities in the Caribbean Berletta Forrester Export Promotion Manager 2011 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

3. 4. CARIFORUM Forum Of Caribbean States

CARIFORUM

• 14 Member Countries of CARICOMplus 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 Tobag o

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) 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:

• JAMPRO

• Ministry of Foreign Affairs & Foreign Trade

• Industry associations including the PSOJ, JEA, JMA, JAS

Jamaica Promotions Corporation (JAMPRO) 42. Q & A Session

End of Part 1

43. French Caribbean Outermost Regions (FCORs)

Part 2

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

WHOLESALESECTOR

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

RETAILSECTOR

Most important retail food outlets: supermarkets and hypermarkets

• 5 major hypermarkets

• • Euromarche

• • Hyper U

• • Carrefour

• • Premisteres Reynoird

• • 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 contribute70% 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

• • GroupeHayot

• • 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

RETAILSECTOR

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

Main industries:

• 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

$US

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?

Animal and farm products

• Lobster, shrimp and other crustaceans

Food products

• Farm products such as fruit

• Beverages (juices, aerated water, beer, fermented beverages, other wines, brandy)

• Pepper sauce, soups and food preparations

• Baked products (bread, pastries)

Medicaments

Wood products

Clothing

Beauty/ Make-up Preparations

58. Export opportunities to FCORs - Goods

Agricultural & sea-food products

Agro-processing

• sauces, spices, condiments, jams, jellies

Food products

• Food preparations, mineral waters, beers, aerated waters

Paper and paperboard products

Minerals

Chemicals

Textiles

Plastics & Rubbers

Stone/Glass

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

Fashion

ICT

Cultural Industries-music ,recreational, cultural and sporting services

Film

Tourism

Tourism Customer Services Training

Renewable Energy

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

Language

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

Inadequate transport

Inability of SMEs to fill container critical mass required to reduce average shipping costs

High duties

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

End of Part 2

80. Summary & recommendations

Part 3

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

Build trust

82. Next steps Producers/Exporters

Fill the information gaps

Initiate more personal contact with firms that are import-ready

Market intelligence

Market Visits

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

Expo Jamaica April 2012

Jamaica Promotions Corporation (JAMPRO) 85. Thank You!