Promoting Trade and Investment Globally Successes in Agri-business in CARIFORUM: Lessons learnt Brussels, July 11 th 2014
CARIFORUM – Gateway to the world 15 Countries 23.4 million persons 5 Official languages 10 Free Trade Agreements Preferential access +/- 1 billion consumers 1 Heart
Caribbean Export – Who are we? The Caribbean Export Development Agency was established in 1996 by an Inter- Governmental Agreement and is the regional trade development and investment promotion agency of the 15 CARIFORUM States. The Agency is governed by a Board of Directors (public and private) appointed by each CARIFORUM State. The Board is accountable to the CARIFORUM Council of Ministers.
Caribbean Export and the European Union Caribbean Export is proud to partner with the CARICOM/CARIFORUM Secretariat and the European Union (EU) in promoting the sustainable development of the CARIFORUM States. Caribbean Export is currently implementing various European Development Fund (EDF) programmes, all of which seek to “contribute to the gradual integration of CARIFORUM countries into the world economy enhancing regional economic growth and by extension alleviate poverty. ”
Objectives of the Caribbean Export – European Union Cooperation 1. Enhance the Competitiveness and Promote Innovation of the CARIFORUM's private sector; 2. Promote Trade, Export Development and Investment among CARIFORUM States and between them and the world; 3. Support to the development of policy and regulatory frameworks with special attention to the services sector; and 4. Support greater cooperation between the Dominican Republic and Haiti in the areas of Trade, Investment Promotion, Customs and Private Sector Development.
Promoting Competitiveness in CARIFORUM Business climate Infrastructure- Investmen t reform Sustainable Development Direct support to SMEs Strenghtening BSOs
CARIFORUM context: Slow Growth BRIDGETOWN, Barbados, Wednesday February 12, 2014, CMC - The Caribbean Development Bank (CDB) Tuesday said that regional countries experienced average economic growth of 1.5 per cent last year as compared with 1.2 per cent in 2012 … the CDB said the region is likely to record average economic growth of 2.3 per cent in 2014. (Source: CDB) GDP Growth in 2013 - Dominican Republic 4.1% and Haiti 4.3% ( Source: World Bank)
CARIFORUM context: Negative Trade Balance Source: CARICOM’s Secretariat
CARIFORUM context: Loss of World Market Share Source: World Bank
CARIFORUM context: Economies in Transition Country Agriculture (% of GDP) 1980 1990 2000 2005 2013 Antigua & Barbuda 7.1 4.2 3.9 3.7 2.0 7.0 7.0 6.3 5.8 3.0 Barbados 27.4 20.0 17.2 16.6 12.1 Belize Dominica 30.7 25.0 18.1 18.7 21.0 20.1 13.4 11.1 15.1 8.0 Dominican Rep. Guyana 23.4 38.1 31.1 26.0 21.0 na na na 28.0 24.1 Haiti 9.1 8.1 6.7 5.0 6.3 Jamaica Suriname 10.1 9.5 9.2 9.6 10.9 3.0 2.3 0.9 0.8 0.3 Trinidad & Tobago Source: World Bank
Challenges for CARIFORUM’s Private Sector Fierce competition in local markets; Lack of adequate human resources; Harsh financing conditions; Insufficient infrastructure and Institutional framework; Expensive & unreliable transportation; Low product recognition; Difficulty in competing in world market (price, quantity, packaging, standards, distribution, market knowledge … ); Difficulty in travelling to markets - visa issue; Few and unreliable trade and economic statistics; Outdated and/or unsuitable technology; Economic and Environmental vulnerability …
The New CARIFORUM Paradigm Globalisation has changed the way people live and trade. Innovations in ITC and transport have shrunk the dimensions of time and space and expanded the notion of markets. Competition has become fiercer, we have loss preferential access to traditional markets putting a supplementary strain on the competitiveness of our SME’s . Therefore, the need to re-establish our competitiveness exploiting that “Je ne sais quoi” that makes us, Caribbean people, special, seeking the vertical and horizontal integration of our economies, creating strategic alliances and offering appealing products and services.
Case Study 1: Jamaica Producer’s Group (former Jamaica Banana Producers Ass.) Faced with “Adapt to Survive” situation following the dismantling of the preferential regime for ACP bananas in the EU Market - WTO. Strategic decisions: Move Up the Value Chain - enter snack market (2013: 1 million units/week) with diversified offer (plantain, cassava, sweet potato and breadfruit chips) Invest in new products/services: “Tortuga International”, “Blue Mountain coffee”, “RAM Shipping” & “ Hoogesteger” (NL) Results: “JP Europe had 2013 profits of $183.9 million up 133% from $78.9 million in 2012. The revenues of $5.47 billion were up 16% from the prior year” (http://www.jpjamaica.com)
Case Study 2: Dominican Republic’s Confederation of Cocoa Farmers (CONACADO) DR cocoa farmers faced with low and volatile price of their crops in the international market Strategic decisions: Regroup in a Confederation 1988 Organic (1991) and Fair Trade (1995) certified Work with government, leading private associations and international donors to promote sector Promote R&D and best practices Results: DR is largest exporter of organic cocoa in the world CONACADO regroups 152 small farmers associations representing 8,500 affiliates
Case study 3: Translating “The Caribbean” into brands The promotion of a strong brands helps reduce the volatility of exports. The Caribbean is widely recognized as a good place to live in. We should capitalize on this positive image and use our Heritage, Culture, Diversity, Identity, “Savoir - faire”, Uniqueness, … to develop brands with a view to successfully penetrating international markets. We should develop compelling stories around products and services that offer authenticity appealing to select consumers.
Case study 3: “Caribbean brands” The Caribbean is: Paradise
Case study 3: “Caribbean brands” The Caribbean is: History
Case study 3: “Caribbean brands” The Caribbean is: Excellence
Case study 3: “Caribbean brands” The Caribbean is: Passion
Case study 3: “Caribbean brands” The Caribbean is: Adventure
Case study 3: “Caribbean brands” Caribbean is: Business
Case study 3: “Caribbean brands” Examples of strong regional brands
Lessons Learnt: WHERE, WHAT, & HOW are crucial to achieve competitiveness WHERE : Market segments in which we have a competitive advantage: Niche, Luxury, Fair Trade, Organic, Diaspora … Need to know and understand the trends and expectations of target markets. Engage in market intelligence activities. WHAT: The products we offer, not competing on price or quantity but in quality and uniqueness. Adapt our products to the specificities of target markets: labeling, packaging, taste, standards …
Lessons Learnt: WHERE, WHAT, & HOW are Proposals: WHERE, WHAT, & HOW are crucial to achieve competitiveness crucial to achieve competitiveness HOW: Creating own brands; Exchange and promotion of best practices; Tailored capacity building initiatives; Promotion of standards; Organic, Fair Trade and Quality certifications; Invest in productivity, logistics, energy efficiency … ; Working with technical centers and universities in R&D; Industry wide cooperation via clusters and associations; Promotion of value-added chains; Vertical and horizontal integration; Links to tourism, sports and cultural industries...
Caribbean Export - EU: Promoting the Examples of Caribbean Export – EU support competitiveness of Caribbean Agribusiness Region Wide Public-Private Sector Dialogue - Colloquium; Direct support to SMEs via competitive procedure - DAGS ; Food Safety Call for Proposals with IICA and CROSQ (ongoing); Training in quality, production, export marketing, trade regimes, customs...- GIZ, ITC, OECS EDU, ADOEXPO, JAMPRO, CCIH, SELA, OTN, IADB, WCO...; Branding Support for SMEs;
Caribbean Export - EU: Promoting the Examples of Caribbean Export – EU support competitiveness of Caribbean Agribusiness Regional image building/branding with CARICOM and CAIPA - PROINVEST, GIZ, UK, WB, Canada, CDB, IADB, OAS, USA, Turkey, China … Market Promotion Platform: Caribbean Kitchen; Trade Missions and Fairs: UK, Fancy Food, ANUGA, SIAL, Expo-Jamaica, Expo-Cibao, TIC, Agroalimentaria, FIHAV, Korea - IADB, UK, CANADA, CDB …
Caribbean Export - EU: Promoting the Examples of Caribbean Export – EU support Examples of Caribbean Export - EU support 2/2 competitiveness of Caribbean Agribusiness Technical Study Tours (France/Belgium, UK, Germany, Brazil Chile, Nicaragua, Turkey, Guadeloupe, - PROINVEST & BIZCLIM...); Trade Policy support for CARIFORUM States and Secretariat; Promotion of Joint Bi-National Standards (Haiti-DR); Trade publications/studies (EPA, OCT- FCORS, CARICOM-DR,); Support to clusters: Coconut (CARIFORUM) , Cocoa (DR-Haiti), Pineapple (DR), Mangoes (Haiti-DR) …
Fostering Regional Integration and Competitiveness
Escipión Oliveira Gómez Deputy Executive Director Thank You, Merci, Gracias, Obrigado
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