THE CUBAN MARKET IS OPENING and Barbadian businesses should make some headway within the next two years.
That’s the prediction of the Barbados Private Sector Trade Team (BPSTT), a division of the Barbados Private Sector Association.
The Trade Team’s mission is to “represent and promote the interests of Barbados’ private sector in the arena of international trade negotiations”.
Giving a review of private sector exports under trade agreements last year, BPSTT trade consultant Shardae Boyce said: “Exporting is one of the most laudable ways to achieve private sector-led growth and in 2015, local companies utilised all trade agreements and arrangements signed by Barbados, with the exception of the CARICOM-Cuba Free Trade Agreement.”
Noting that the free trade agreement with Cuba only covered trade in goods, Boyce said “although there was no record of certified exports from Barbados to Cuba under the terms of the agreement, local companies continue to pursue this market”.
“However, the Cuban market is one that requires patience, given the amount of bureaucratic actions and procedures that are required before actual access is granted,” she said.
“In March 2015, the BPSTT focused on stimulating trade between Barbados and Cuba through the hosting of a workshop to sensitive companies about the CARICOM-Cuba Agreement and procedures of entry, among other things.
“Since then, some companies have made significant efforts to enter the Cuban market and have advanced talks with the Cuban government. The BPSTT remains confident that the export figures to Cuba will change within the next two years or sooner as companies aggressively pursue entry.”
Important market
Boyce said CARICOM was Barbados’ most important export market in 2015. The private sector exported in excess of $238 million worth of goods under the rules set out in Revised Treaty of Chaguaramas.
“Within CARICOM, Trinidad and Tobago, Guyana, Jamaica and St Lucia were Barbados’ main export markets. In addition, Barbados boasted a trade surplus with nine of 15-member states: Guyana, Jamaica, St Vincent, Antigua, St Kitts and Nevis, Grenada, Dominica, Haiti and Montserrat,” the trade consultant reported.
“A significant amount of the private sector’s exports were also sent to: the United States under the Caribbean Basin Initiative; Europe; and Canada under the CARIBCAN preferential scheme. Exports to these markets were over $54 million, $46 million and $13 million, respectively.”
With free trade agreement negotiations between Canada and CARICOM having been suspended nearly a year ago, Boyce said the CARIBCAN waiver had been extended until December 31, 2023.
She added: “Generally, Barbados continued to export to the European Union including to the member states of France, the Netherlands, Spain, Italy and Germany. However, the sale of goods was heavily concentrated in the UK.
“In addition, exports to the French Caribbean Overseas Territories, covered by the EU-CARIFORUM Economic Partnership Agreement, included exports to Guadeloupe in excess of $1.2 million and exports to Martinique, $1.1 million.” (SC)