OECS Report-Assessment of Trade Performance and Competitiveness

An Assessment of Trade Performance and
Competitiveness of OECS Countries
October 28, 2005
Prepared by Christopher Vignoles
for the Caribbean Regional Negotiating Machinery (CRNM)

TABLE OF CONTENTS
I. Introduction........................................................................................................................... 1
II. The Importance of Trade ..................................................................................................... 2
III. Trade in Services................................................................................................................... 4
A. Importance of Services Trade ............................................................................................. 4
B. Trade Performance.............................................................................................................. 5
C. Travel Services – measuring tourism’s competitiveness .................................................... 7
(i) Tourism arrivals – stopover visitors and cruise ship passengers .................................... 7
(ii) Tourism visitor expenditures .......................................................................................... 8
(iii) Price competitiveness...................................................................................................... 9
(iv) Tourism competitiveness monitor................................................................................. 10
(v) The tourism satellite account ........................................................................................ 11
D. Commercial and Transportation Services......................................................................... 12
E. The Provision of Services via Modes 3 and 4 .................................................................. 14
F. Evaluating Services Trade ................................................................................................ 16
IV. Merchandise Trade............................................................................................................. 18
A. Trade Performance............................................................................................................ 18
(i) Growth and patterns in the direction of trade ............................................................... 18

(ii) Composition of trade by sectors ................................................................................... 20
(iii) Export concentration and principal products ................................................................ 22
B. Competitiveness, Specialization and Complementarity ................................................... 23
(i) Real effective exchange rate ......................................................................................... 24

(ii) Market access and penetration ...................................................................................... 24
(iii) International competitiveness of exports ...................................................................... 26
(iv) Export specialization..................................................................................................... 28
(v) Trade complementarity and intensity............................................................................ 30
C. Evaluating Merchandise Trade ......................................................................................... 31
V. Competitiveness through Cost Structures ........................................................................ 33
A. Inputs and Factors of Production ...................................................................................... 33
(i) Labor ............................................................................................................................. 33

(ii) Capital ........................................................................................................................... 34
(iii) Inputs as goods and services ......................................................................................... 35
B. Infrastructure Costs........................................................................................................... 36
(i) Transport ....................................................................................................................... 36

(ii) Telecommunications ..................................................................................................... 36
(iii) Electricity...................................................................................................................... 37
VI. Trade and Integration: A Strategy for Growth ............................................................... 39
A. Exports and Growth .......................................................................................................... 39
(i) Challenges in scale, cost and preference erosion.......................................................... 39

(ii) Opportunity in diversification....................................................................................... 41
B. A Strategy for Competitiveness ....................................................................................... 41
(i) Unilateral action............................................................................................................ 42

(ii) A multilateral agenda.................................................................................................... 43
(iii) Regional integration....................................................................................................... 44
Statistical Appendix
Bibliography
The views expressed in this document reflect those of the author and not of the Caribbean
Regional Negotiating Machinery. The author would like to thank Henry Gill, Ramesh
Chaitoo and Dr. Claudius Preville for their valuable comments on a draft of this report.
I. INTRODUCTION
The Organization of Eastern Caribbean States (OECS) was formed in 1981 with the signing of
the Treaty of Basseterre in St. Kitts & Nevis. The OECS includes seven full member states
(Antigua & Barbuda, Commonwealth of Dominica, Grenada, Montserrat, St. Kitts & Nevis, St.
Lucia and St. Vincent & the Grenadines) and two associate members (Anguilla and the British
Virgin Islands).1 Its mission is to contribute to the sustainable development of the sub-region
through regional integration initiatives.
While the OECS began as a union to promote cooperation and solidarity, it has evolved into a
relatively advanced integration process. The organization’s supreme decision-making body is the
OECS Authority, made up of prime ministers and chief ministers from all member states, and it
is supported by an administrative secretariat located in Castries, St. Lucia. Also, the seven full
members and Anguilla have formed a currency union, with the adoption of the Eastern
Caribbean dollar, supervised by the Eastern Caribbean Central Bank.
All OECS full member states are partners in the wider regionally integrated Caribbean
Community (CARICOM). For more than 30 years, CARICOM members have sought to deepen
relations through economic integration, foreign policy coordination and functional cooperation.
In 2001, they signed the Revised Treaty of Chaguaramas and committed to, among other things,
the creation of a CARICOM Single Market and Economy (CSME).2
While the CSME process is moving forward, many OECS countries have voiced reservations
about its potential benefits and costs. This report will not attempt to evaluate the CSME’s impact
on OECS member states since it is not yet fully implemented. However, at this time, it is
important for OECS countries to evaluate their economic performance, identify development
bottlenecks and implement possible solutions, to increase the gains and diminish the losses from
a single common market (and eventual single economy) across the Caribbean region.
This report attempts to provide an analysis of the sub-region’s trade performance and
competitiveness over the last ten years (for which data is available, 1993-2003). Chapter II of
this report briefly looks at the importance of trade for the economies of the OECS sub-region.
Chapters III and IV analyze the performance of services and merchandise trade, respectively.
They also attempt to provide insights into the competitiveness of sectors and products in both
categories of trade. Chapter V identifies the cost structures faced by firms operating across the
OECS, and assesses the impact on competitiveness in production and trade. Chapter VI
summarizes the conclusions and puts forth a possible strategy for competitiveness to drive
sustainable export-led growth in the region. A statistical appendix and a bibliography follow the
report.
1
In this report, the OECS refers to full members only. In some data calculations, OECS does not include Antigua &
Barbuda and Montserrat due to lack of comparable data.
2
CARICOM includes the seven OECS full member states, plus The Bahamas, Barbados, Belize, Guyana, Haiti,
Jamaica, Suriname and Trinidad & Tobago. The Bahamas is not party to the Revised Treaty of Chaguaramas and the
CSME.
1
II. THE IMPORTANCE OF TRADE
Trade plays a very significant role in the economies across the OECS sub-region. As small island
states, the OECS countries are relatively open economies and therefore, rely on export income to
create jobs, buy imports, and maintain an overall healthy balance in external accounts.
Furthermore, these countries are fiscally dependent on international trade transactions for
revenue to finance government operations and increasing external debt payments.
The constraints of small size render a country to open its economy and integrate into the global
trading system. In micro states, the smallness of domestic markets drive firms to seek external
markets, while at the same time, limited domestic resources increase the need for consumers and
producers to buy goods and services abroad. The openness of OECS countries is evident through
the trade openness indicator, measured as exports and imports of goods and services as a
percentage of output (trade/GDP). The OECS as a whole displays an openness indicator of 124
percent; this share ranges from 140 percent in Antigua & Barbuda to 113 percent in St. Kitts &
Nevis.3 Given this degree of openness, any changes in trade performance have a direct impact on
economic output.
Another method to measure the importance of trade is to evaluate the impact of exports and
imports on a country’s balance of payments. Over the last decade, the sub-region’s current
account balance has deteriorated from approximately 10 percent to 20 percent of GDP.4 This
poor performance is the result of a growing merchandise trade deficit (stagnant exports and
rising imports) and relatively stagnant services exports (traditionally, a strong surplus account).
Thus far, the OECS sub-region has been able to finance the current account imbalance with
substantial inflows of foreign direct investment and development aid.
The production and trade structures of OECS countries show that they are predominantly
services economies. Services related sectors contribute between 60-75 percent of GDP, while
industry (including manufacturing) accounts for roughly 20-28 percent of output.5 In terms of
trade structures, OECS member states export mostly services and import mostly goods. Services
exports account for almost 80 percent of the region’s total exports, up from a 66 percent share in
the early 1990s. For the past decade, goods have accounted for 70 percent of imports into the
OECS (see Table 1 in the Statistical Appendix).
The importance of trade in OECS countries is also evident in their dependence on international
trade taxes as a source of fiscal revenues. Revenue from international trade transactions accounts
for just over 50 percent of total revenue in Antigua & Barbuda, Grenada and St. Lucia, 45
percent in Dominica and St. Vincent & the Grenadines, and 37 percent in St. Kitts & Nevis.6
This indicates a significant dependence on trade to finance government operations, including the
increasing burden of interest payments on debt. OECS member states are among the most
3
In comparison, the trade openness indicator for the Caribbean as a whole is 72 percent, for the MERCOSUR
countries it is less than 30 percent. See World Bank – World Development Indicators (WDI) database.
4
IMF – Balance of Payments Statistics database.
5
World Bank – WDI.
6
Total revenue excludes grants. See IMF (2004b, 2004c, 2005c and 2005d) and ECCB (2004).
2
indebted countries in the world. In 2004, six countries in the sub-region were among the fifteen
most indebted emerging economies – St. Kitts & Nevis ranked second with a public sector debt
to GDP ratio of almost 180 percent.7
Figure 2.1 Export Growth Performance, 1990-2003

14.0 1990-1995
1995-2000
10.5
2000-2003
Growth Rate (%)
7.0
3.5
0.0
-3.5
-7.0
OECS Antigua & Dominica Grenada St. Kitts & St. Lucia St. Vincent
Barbuda Nevis & Grens.
Notes: Exports of goods and services. Growth is measured as annual average over time period.
Source: UN, IMF and WTO data.
In conclusion, OECS economies are small, open and deeply integrated into the global trading
system. Export growth, particularly in services sectors, is therefore a key to their development
prospects. However, as the balance of payments indicates, export growth has slowed in recent
years due to a number of factors, including the erosion of preferences, increased competition
from foreign suppliers, and slumping tourism demand (see Figure 2.1 above). OECS countries
must find ways to improve their competitiveness and boost exports in this era of growing
liberalization, or face the prospect of dwindling economic growth. In the next two chapters, the
report takes a closer look at the performance of services and merchandise trade, as well as the
competitiveness of specific sectors and products.
7
IMF (2005b).
3
III. TRADE IN SERVICES
This chapter looks at the importance and performance of services sectors in the OECS regional
and national economies. It also attempts to evaluate the competitiveness of services sectors,
particularly tourism, over the last decade. The analysis is carried out in two ways: (i) by sector,
for travel, commercial and transportation services; and (ii) by mode of supply, for trade in
services through commercial presence and the temporary movement of labor (Modes 3 and 4,
respectively).
It is important to note that the lack of comprehensive and reliable services data, worldwide and
especially in the region, limits the scope of analysis.8 Given the importance of services in many
OECS economies, the capacity to collect, maintain and disseminate services data should be
improved.
A. Importance of Services Trade
Services account for 80 percent of total exports and 30 percent of total imports in the OECS. The
sub-region as a whole is a net exporter of services. During the period 2000-2002, it exported
twice the value of services as it imported; this ratio has remained relatively consistent over the
past decade. Services exports are relatively more important as a source of foreign exchange in
Antigua & Barbuda, St. Lucia and St. Vincent & the Grenadines, accounting for more than three-
quarters of total exports.
The OECS travel (mainly tourism) industry is the most important sector in the sub-region’s
services export structure (see Figure 3.1 below). Between 1993-2003, the travel sector accounted
for 73 percent of all services exports (this share has decreased slightly over time). In 2003,
OECS travel services receipts reached US$ 914 million, roughly three times the value of total
goods exports during the same year. Travel services exports account for over 85 percent of total
services exports in St. Lucia; this figure is roughly 70 percent in Antigua & Barbuda, Grenada
and St. Kitts & Nevis, 65 percent in St. Vincent & the Grenadines, and 60 percent in Dominica.
Commercial, transportation and government services make up the remaining share of services
receipts. The largest sector, commercial services, accounts for 16 percent of OECS total services
exports.9 It makes up the largest share of exports in Dominica and St. Vincent & the Grenadines
(30 and 26 percent of total services, respectively). The transportation sector is the third largest
source of services export earnings, accounting for 10 percent of the total. Government services
exports are negligible.
8
For example, current methods of compiling services data do not allow one to look at trends vis-à-vis different
destinations. Furthermore, problems still exist in some countries (OECS member states included) in measuring two
of the four modes of supply for services trade (Mode 3 – commercial presence and Mode 4 – movement of labor).
9
Commercial services include, among others, telecommunications, financial, insurance and professional (such as
engineering and legal) services.
4
Figure 3.1 OECS Services Exports by Area, 1993-2003
100%
80%
Share of total .
60%
40%
20%
0%
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Travel Commercial Transportation
Source: See Table 2 in the Statistical Appendix.
Services industries are also an important source of employment in the OECS sub-region. It is
estimated that the tourism sector employs, both directly and indirectly, up to 40 percent of the
regional labor force. Another 20 percent, approximately, is estimated to work in the public
sector.10 Adding the other services sectors’ share of employment (for which data is largely
unavailable) shows the overwhelming importance this area of trade has on employment in the
sub-region. For example, in St. Lucia the share of employed persons working in services-related
industries (including construction and utilities) was roughly 70 percent in 2003.
B. Trade Performance
OECS services trade has been characterized by slowing growth in exports and imports. The sub-
region’s total services exports grew by an average 3.2 percent a year between 1993-2003; a
moderate performance, yet relatively weak compared to CARICOM as a whole (4.6 percent) and
to all less developed countries (6 percent). Services exports grew fastest in the first versus the
second half of the decade, posting growth rates of 5.9 percent and 0.6 percent, respectively. As
Figure 3.2 shows, total services exports peaked in 1999 reaching US$ 1.24 billion, however, they
contracted over the next three years, and despite growth of 10 percent in 2003 have failed to
reach their 1999 level. Total services imports demonstrated a similar pattern of growth –
expanding at an average 8.2 percent a year between 1993-1998 and 0.8 percent a year between
1998-2003.
All OECS member states experienced similar trends in growth, with faster growth in the first half
of the decade relative to the second half. The poor performance between 1998-2003 can be
10
World Bank (2005).
5
attributed to three countries: Dominica and Antigua & Barbuda displayed contractions in their
total services exports of 1.9 and 0.4 percent a year, respectively; while St. Lucia’s growth was
stagnant (0.5 percent). In terms of total services imports, Grenada experienced the fastest growth
relative to other OECS member states (7.4 percent a year), while Dominica displayed the slowest
growth at an average 2.1 percent a year.
1,300
1,100 Exports
US$ Millions
900
700
500 Imports
300
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Source: See Tables 2-4 in the Statistical Appendix.
Figure 3.2 OECS: Services Trade, 1993-2003
Similar to total services exports, OECS travel exports displayed moderate 3 percent growth a
year between 1993-2003. This growth was comparable to CARICOM as a whole (3.9 percent),
but much weaker than some regional tourism competitors such as the Dominican Republic (9.8
percent a year). Travel receipts grew every year since 1995, with the exception of 2001-2002 as a
result of weakening tourism demand worldwide. This sector’s exports grew fastest in Dominica
and St. Vincent & the Grenadines (over 6 percent a year for both), and remained stagnant in
Antigua & Barbuda and St. Kitts & Nevis. St. Lucia’s travel receipts grew at an average 10
percent a year up to 1998, but have since remained stagnant.
The second most important area, commercial services, was the fastest growing sector in the
OECS services export portfolio. Between 1993-2003, commercial services receipts grew by 4.5
percent a year. However, this was the result of a strong performance in the first half of the
decade (annual 15 percent growth) rather than the second half, where the sector actually
contracted by almost 5 percent a year. The poor performance is due to slumping financial and
insurance services receipts – as the two sectors, together, have contracted by roughly one-third
(in absolute terms). OECS transportation services exports have maintained average growth of 3
percent a year. Grenada’s transportation receipts (both air and maritime) have performed the best
relative to other OECS member states, growing at 18 percent a year since 1998.
The performance of OECS services sectors can also be measured through trends in global
services market share. The OECS’s share of global services trade has declined in recent years,
from 0.09 percent in 1993 to 0.07 percent in 2003. In travel services, the OECS global market
share has been volatile and displayed a downward trend – from a high mark of 0.22 percent in
1994 to a minimum of 0.17 percent in 2002. The OECS share in global transportation services
imports is slightly down over the last decade, while the sub-region has lost approximately one-
third of its share of commercial services over the same period.
6
C. Travel Services – measuring tourism’s competitiveness
To measure the competitiveness of the OECS’s tourism product, this report analyzes a variety of
traditional and non-traditional indicators. Traditional measures of tourism performance and
competitiveness include tourism arrivals (both stopover and cruise passenger visitors), tourism
earnings, and the real effective exchange rate. Non-traditional indicators include the World
Travel & Tourism Council’s competitiveness monitor and the tourism satellite account. It is
important to note that while this section focuses on the tourism sector, there are other sectors
within travel services with significant potential for growth such as offshore education and health-
related services.11
(i) Tourism arrivals – stopover visitors and cruise ship passengers
OECS total tourism arrivals have grown at 3.5 percent a year between 1993 and 2003. Tourism
arrivals grew strongly in the first half of the period (over 7 percent growth). Growth over the
next five-year period was relatively stagnant with arrivals contracting, on average, 0.1 percent a
year. There are two main categories of tourism arrivals: (i) stopover tourists, whose arrivals have
increased by 2 percent a year; and (ii) cruise passengers, whose arrivals have grown by almost 5
percent a year. Given this performance, stopovers now represent a smaller share of total arrivals
in the OECS from a decade earlier (from a 43 to a 38 percent share).
The consumer market structure of the OECS tourism industry is relatively diversified. Between
1998-2003, 31 percent of stopover arrivals came from Europe, another 30 percent from the
United States, 27 percent from the Caribbean and 13 percent from other countries. Intra-regional
stopover arrivals have displayed the strongest growth performance, increasing by an average 5.2
percent a year over the last decade, versus growth of 2 percent and 1 percent a year in European
and American stopover visitors, respectively. The increasing importance of the Caribbean as a
consumer market for OECS tourism is, in part, the result of increasing popularity of cultural
tourism within the region (i.e. music festivals, carnivals, holiday celebrations). There is potential
for additional growth of Caribbean tourist visitors if the region can address some existing
constraints such as weak intra-regional transport links (see Figure 3.3 below).
To measure the OECS tourism industry’s competitiveness one can also analyze trends in its
market share of total Caribbean stopover and cruise passenger arrivals. The OECS share of total
stopover arrivals to the Caribbean has remained relatively stable at 5 percent between 1993-
2003. While this share has not increased over time, the sub-region did display relatively strong
growth of 2 percent a year since 1998 (second fastest growth among Caribbean regional
groupings, behind the Hispanic Caribbean destinations).12 As a result, the Hispanic Caribbean
has increased its share of total visitor arrivals to the region from 28 percent to 37 percent a
decade later.
11
For more detailed information on offshore education and health-related services see World Bank (2005).
12
Regional groupings include: OECS, Other CARCIOM (non-OECS), Other Commonwealth (Anguilla, BVI,
Bermuda, Cayman Islands and Turks & Caicos Islands), Hispanic Caribbean (Cancun and Cozumel-Mexico, Cuba
and the Dominican Republic), Dutch Caribbean (Aruba, Bonaire, Curacao, Saba, St. Eustatius, St. Maarten), French
Caribbean (Guadeloupe and Martinique), and US Territories (Puerto Rico and USVI).
7
Figure 3.3 OECS Stopover Arrivals by Origin, 1993-2003
300
250
Visitors ('000)
200
150
100
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
United States Europe Caribbean
A closer look at stopover arrivals to the Caribbean by consumer market (or origin) yields similar
results. The OECS share of all US stopover arrivals to the Caribbean has decreased slightly from
2.8 percent in 1993-1998 to 2.5 percent in 1998-2003, given that increasing numbers of
American tourists are now heading to Hispanic Caribbean destinations. Similarly, the OECS
share of European visitors to the region has dropped from 6.3 to 5.4 percent. In this case, the
Hispanic Caribbean’s market share has grown by 8 percentage points to capture almost 50
percent of European visitors. The OECS sub-region has performed best in capturing intra-
regional visitors – it has increased this share by almost 1 percentage point to receive one-fifth of
all intra-regional stopover arrivals.
In the Caribbean cruise ship market, the OECS has consistently held a 10 percent market share of
arrivals. This has been the result of a strong performance in the mid 1990s, when arrivals grew
an average 11 percent a year. However, this performance has been much weaker in recent years –
cruise passenger arrivals contracted 1.4 percent a year between 1998-2003. In contrast, other
Commonwealth and Hispanic Caribbean destinations have displayed growth of over 10 percent a
year during the same period. The Hispanic Caribbean, alone, has more than doubled its share of
the cruise passenger market to 18 percent (mainly due to Cozumel’s increasing popularity as a
cruise destination). See Tables 5-7 in the Statistical Appendix for more detailed information on
Caribbean tourism arrivals.
(ii) Tourism visitor expenditures
Visitor expenditures in the OECS grew at an average 3.4 percent a year since 1993 to reach
almost US$ 1 billion in 2003. This was a relatively weak performance given growth of 4 percent
for non-OECS CARICOM countries, 4.5 percent for US territories and 7 percent for Hispanic
Caribbean destinations. As a result, the OECS share of total visitor expenditures in the Caribbean
declined by one-half a percentage point to 4.8 percent. Given that the OECS accounts for a 4.4
percent share of tourism visitors, spending per visitor in the OECS is higher relative to other
Caribbean destinations.
8
Visitor expenditures in Grenada displayed the strongest growth (almost 14 percent a year), while
expenditures in Antigua & Barbuda and St. Kitts & Nevis displayed the weakest performance
(both at an average 0.8 percent a year between 1993-2003). The growth in expenditures in
Hispanic Caribbean destinations was driven by Cozumel, Cuba and the Dominican Republic,
increasing by an average 17, 11 and 9 percent a year, respectively.
There is potential for the OECS to boost tourism expenditures from a variety of sources. First,
while cruise ship passengers account for 60 percent of arrivals, they represent less than 10
percent of tourism earnings. It is important that the OECS look into strategies to increase the
foreign exchange spent on-shore by cruise passengers on transportation, tour guide, retail sales
and entertainment services. Second, the yachting sector is another area of potential growth for
tourism earnings. While not yet systematically incorporated in the measurement of tourism
expenditures, the yachting sector is a maturing segment with estimated earnings of more than
US$ 75 million a year. Some of the sector’s development constraints that should be addressed
include a general lack of awareness of yachting’s economic impact, little formal training in
yachting-related skills, poor inter-island collaboration and no private sector organization.13
(iii) Price competitiveness
Analysis of the OECS’s price competitiveness of its tourism product yields mixed results. At the
macroeconomic level, the real effective exchange rate (REER) is used to: first, analyze trends in
a country or region’s international price competitiveness over time, and second, compare these
trends with trade partners and competitors. To measure the competitiveness of tourism, the IMF
constructs a REER based on tourism customers. IMF calculations of this real exchange rate for
the OECS region show a relatively stable trend between 1990 and 2003 (see Figure 3.4). Perhaps
the most noticeable change has been sustained depreciation in 2002 and 2003; and while largely
on the basis of a depreciating US dollar, this trend has improved the sub-region’s tourism price
competitiveness in its major export markets. However, similar trends in the sub-region’s main
tourism competitors (such as the Dominican Republic) have also weakened the relative
competitiveness of the OECS tourism product.14
Figure 3.4 OECS: Real Exchange Rate (Tourism-based), 1990-2003

110
105
REER Index
100
95
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Note: 1990 = 100; decrease = depreciation. Source: IMF (2004a).
13
UN-ECLAC (2004).
14
For more information on the tourism-based REER see IMF (2004a).
9
At the firm level, price competitiveness can be measured through production costs, which are a
reflection of the allocation of resources and cost of inputs within an economy. IMF calculations
indicate that prices of tourism products in the OECS tend to be among the highest in the
Caribbean. This trend is most visible in high food and accommodation prices, which are the
direct result of high labor and utility costs. A strategy to pursue the high-end tourism market and
offer a differentiated product is a valid one; however, there is evidence that the OECS tourism
product is not that different from other lower-cost Caribbean destinations. Hence, the sub-region
may be pricing itself out of the market and suffering a loss in price competitiveness.15 For more
on cost structures in the OECS, see Chapter V of this report.
(iv) Tourism competitiveness monitor
The tourism competitiveness monitor is an indicator calculated by the World Travel & Tourism
Council that ranks over 200 countries on the basis of seven indices of competitiveness.16 As
Table 3.1 shows, in 2004, the OECS ranks very low in price competitiveness. Only one member
state, Dominica, ranks among the top 100 countries in price competitiveness of its tourism
product. Also, relative to other Caribbean tourism destinations, the OECS ranks relatively poorly
in the human resources index. This is a worrying trend for the OECS given the importance of
human resources – in terms of skills, training and customer service – as a key input to the
tourism industry.
The OECS performed well in the infrastructure and social indicators. Grenada, St. Vincent & the
Grenadines and St. Kitts & Nevis all rank in the top 16 countries in terms of infrastructure; all
OECS member states are among the top 54 countries in the social indicator. At the same time,
the Hispanic Caribbean does not display high marks in the social area. Other CARICOM
countries (The Bahamas, Barbados, Jamaica and Trinidad & Tobago) displayed high rankings in
the technology, human resources and openness.
Among OECS member states, St. Kitts & Nevis had the highest overall tourism competitiveness
index, pointing to the relatively high potential to further develop its tourism product. While
Dominica displayed a high mark in price competitiveness, it had the lowest overall index due to
poor values in environment, human resources and openness. It is important to note that these
rankings should not be interpreted strictly, but rather as indications of the general areas where
individual member states, and the OECS as a whole, appear to require additional resources to
improve its tourism product’s competitiveness.
15
IMF (2003a, 2004a).
16
The indices are related to the tourism industry: Price Competitiveness is based on hotel prices, power purchasing
parity, and taxes on goods and services; Infrastructure is based on roads, railways, and access to sanitation and
drinking water; Environment is based on population density, CO2 emissions, and environmental treaties; Technology
is based on internet hosts, telephone mainlines, high-technology exports, and mobile phones; Human Resources is
based on life expectancy, adult literacy, school enrolment, urban population, gender indicators, and various travel
and tourism-related employment statistics; Openness is based on visa requirements, trade openness, and
international taxes; and Social is based on the human development index, daily newspapers, personal computers,
television sets, and crime. For more detailed information on the tourism competitiveness monitor visit
http://wttc.org.
10
Table 3.1 Tourism Competitiveness Monitor, 2004
Price Infra- Environ- Tech- Human Open- Tourism
Comp. structure ment nology Resources ness Social Index
Index Rank Index Rank Index Rank Index Rank Index Rank Index Rank Index Rank Avg.
Antigua & Barbuda 6 (118) … … 57 (73) 90 (45) 44 (99) 86 (5) 69 (38) 59
Dominica 37 (84) … … 40 (131) 67 (76) 37 (106) 47 (101) 65 (51) 49
Grenada … … 81 (6) 48 (95) 62 (82) 55 (82) 48 (96) 69 (41) 61
St. Kitts & Nevis 5 (120) 73 (16) 66 (49) 70 (68) 96 (9) 70 (44) 69 (37) 64
St. Lucia 12 (112) … … 65 (51) 60 (83) 63 (61) 59 (73) 74 (28) 56
St. Vincent & Grens … … 79 (8) 47 (98) 54 (90) 39 (105) 67 (56) 64 (54) 58
OECS Avg. 15 78 54 67 56 63 68
The Bahamas … … 69 (27) 51 (91) 77 (59) 63 (61) 72 (37) 58 (69) 65

Barbados 27 (98) 87 (3) 43 (121) 79 (56) 84 (25) 73 (33) 67 (44) 66
Jamaica 18 (109) 63 (39) 19 (164) 72 (64) 51 (90) 79 (17) 64 (52) 52
Trinidad & Tobago 19 (108) 69 (24) 16 (170) 66 (78) 60 (66) 52 (92) 67 (43) 50
Other CARICOM 21 72 32 74 65 69 64
Costa Rica 55 (56) 72 (17) 55 (83) 77 (58) 60 (66) 52 (91) 54 (79) 61

Cuba … … 63 (40) 41 (130) 57 (87) 72 (43) … … 60 (63) 59
Dominican Rep. 58 (51) 54 (57) 42 (127) 42 (106) 49 (96) 63 (65) 42 (107) 50
Puerto Rico … … … … 88 (9) 85 (50) … … 47 (102) … … …
Hispanic Carib. 57 63 57 65 60 54 52
Source: WTTC Competitiveness Monitor (2004).
(v) The tourism satellite account
A satellite account is a statistical methodology to measure the impact of economic sectors that
are not defined as “specific industries” in a country’s national accounts. Using a satellite account
to measure tourism is beneficial because a variety of sectors and industries (transportation, hotel,
food and beverage, etc) contribute to create one tourism product. Since tourism does not supply
one homogenous product, the tourism satellite account (TSA) is calculated from the demand-side
of economic activity. The TSA allows for comparisons between countries and sectors, a valuable
tool for policymakers in the OECS in order to understand the economic and social impacts of
tourism in their countries. The World Travel & Tourism Council published the first Caribbean
tourism satellite account report in 2004.17
Travel and tourism consumption is an aggregate demand-side indicator that measures the value
of consumption of tourism-related goods and services by and on behalf of visitors in a resident
economy.18 Between 1993-2003, travel and tourism consumption in the OECS grew, on average,
by 1.6 percent a year, compared to 5.0 percent growth for the Caribbean as a whole. As a result,
the OECS has gone from a 5.9 percent share of Caribbean travel and tourism consumption in
1993, to 4.2 percent a decade later. Consumption increased fastest in Grenada (5.5 percent a
17
For TSA data see WTTC (2004).
18
Travel and tourism consumption is made up of four demand-side accounts: personal travel & tourism (personal
spending by an economy’s resident’s on tourism); business travel (public and private sector spending goods and
services during business travel); government expenditures (expenditures by government agencies to provide tourism
services to visitors); and visitor exports (expenditures by international visitors on goods and services in a resident
economy).
11
year); it contracted in St. Kitts & Nevis and remained stagnant in Antigua & Barbuda (-0.5 and
0.1 percent growth a year, respectively) over the same period.
A closer look at the external component of travel and tourism consumption (visitor exports, or
spending by international visitors on goods and services) yields similar results. Visitor exports
account for a majority of tourism consumption in the OECS. Between 1993-2003, OECS travel
and tourism exports were relatively stagnant, posting growth of just 0.5 percent a year versus 4.5
percent in the Caribbean. Grenada’s and St. Vincent & the Grenadines’s exports grew at 4.7 and
4.3 percent a year, respectively; this rate was -2.4 percent a year for St. Kitts & Nevis.
The competitiveness of tourism can also be evaluated through capital investment, a TSA concept
that captures investment by the private and public sector in tourism-related facilities, equipment
and infrastructure. Capital investment in travel and tourism in the OECS increased by almost 5
percent a year to reach US$ 390 million in 2003; compared to growth of 7 percent a year in the
Caribbean as a whole (US$ 6.7 billion in 2003). Travel and tourism capital investment has
displayed strong growth in Antigua & Barbuda, Grenada, St. Kitts & Nevis and St. Vincent &
the Grenadines (growth of over 5 percent a year over the last decade). However, investment in
Dominica and St. Lucia has decreased over the same period, a poor sign for the development and
maintenance of the tourism infrastructure in these countries.
The TSA methodology uses the demand-side aggregates to construct supply-side accounts. One
such account is travel and tourism GDP, measuring the direct and indirect value-added of travel
and tourism to the resident economy. Consistent with the results from the demand-side data, the
OECS’s performance in travel and tourism GDP has been weak (relative to the Caribbean as a
whole) and worsening (tourism GDP increased 2.4 percent a year between 1993-2000 and
decreased 0.7 percent annually over the next three years). Hence, it is crucial that OECS member
states address the constraints that are weakening their tourism competitiveness and affecting
economic output. This is particularly important for countries that rely heavily on tourism for
economic activity. In Antigua & Barbuda, over 85 percent of its GDP is tourism-related; this
figure is almost 50 percent in St. Lucia. For more detailed data on the OECS tourism satellite
account see Table 8 in the Statistical Appendix.
D. Commercial and Transportation Services
Commercial services are the fastest growing sector in the OECS services export structure.
Antigua & Barbuda, Grenada and St. Vincent & the Grenadines account for roughly two-thirds
of total OECS commercial services; while Dominica, St. Kitts & Nevis and St. Lucia make up
one-third of the total. A breakdown by category (or sub-sector) shows that insurance and
financial services exports each account for roughly a 15 percent share of total commercial
services; “other business” services makes up the remaining 70 percent. Due to a lack of detailed
data it is difficult to analyze the “other business” services sub-sector.
OECS insurance services exports are characterized by strong growth in the mid 1990s (22
percent growth a year) and a strong contraction over the last five years (-8 percent a year).
Antigua & Barbuda accounts for most trade in the sub-regional insurance services sub-sector,
characterized by a relatively large reinsurance sector. The decline in receipts could be attributed
12
to the departure or downsizing of many reinsurance brokers in Antigua due to increasing severe
weather activity across the Caribbean.19
Similar to the performance of insurance services, OECS financial services exports have
demonstrated strong growth between 1993-1998, but have declined in subsequent years. St.
Vincent & the Grenadines dominates sub-regional financial services, accounting for roughly half
of all OECS financial services receipts. The decline throughout the OECS is, in part, the result of
increased scrutiny by the OECD and other international actors to curb harmful international tax
practices. This scrutiny has enhanced supervision and regulation throughout the OECS offshore
financial sector and prompted a general decline in size, and therefore earnings, of the sub-sector.
For example, in 2001, St. Vincent & the Grenadines had 44 offshore banks; this number stood at
11 in late 2003.20
As mentioned earlier, OECS transportation services exports have increased at a moderate and
consistent pace over the last ten years. This growth has been driven by Antigua & Barbuda – its
exports of transportation services account for roughly 60 percent of the OECS total. The other
member states each make up between a 5 and 10 percent share of OECS transportation exports.
A breakdown by category shows that air transport services make up the majority of total
transportation services receipts (a 66 percent share), while maritime services receipts make up
the rest.
Air transport services exports represent primarily the foreign exchange earnings (passenger
fares) of the sub-regional airline, LIAT, based out of Antigua. LIAT is partly owned by the
governments of some OECS member states and Trinidad & Tobago. While the airline’s
operations provide an important share of total transportation services earnings and help diversify
services exports outside of the tourism sector, the airline’s efficiency and competitiveness have
been in question. LIAT has suffered from financial and operational troubles in recent years. A
failed privatization in 1995 has led to financial injections of US$ 36 million by Caribbean
governments. Also, efforts to secure regional routes and air access for LIAT have been costly
and, so far, have failed to provide reliable and low-cost supply within the sub-region.21
Maritime transport services account for roughly one-third of OECS transportation services. In
recent years, growth in maritime transport services has remained relatively stagnant, with foreign
exchange earnings registered at around US$ 40 million a year. Each OECS member state
accounts for an equal share of the regional total, and is probably attributed to port handling and
maintenance fees in the islands’ shipping and cruise ship port operations. A lack of detailed data
for this sub-sector limits the scope of analysis. More research is needed to understand the impact
and performance of commercial (i.e. insurance and financial) and transportation services sectors
on member states and the regional economy.
19
WTO (2001).
20
IMF (2005c).
21
World Bank (2005).
13
E. The Provision of Services via Modes 3 and 4
The provision of services by a foreign company through its commercial presence in a resident
economy (Mode 3) is another mode of supply for services. While the WTO has developed a
statistical tool (the Foreign Affiliates Trade in Services or FATS) to measure Mode 3 trade, few
countries currently report this data. As a result, the use of foreign direct investment statistics,
particularly those inflows and outflows in services-related industries, is considered an acceptable
proxy for measurement.
Foreign direct investment into the OECS sub-region targets mostly services-related industries.
Between 1997 and 2003, FDI into the tourism sector averaged US$ 150 million a year, while
investment into manufacturing, agriculture and fuels (together) averaged just US$ 5 million a
year. Other services sectors such as retail, financial, insurance, education and construction
(together) received on average US$ 11 million over the same period. FDI inflows targeting the
OECS tourism industry focused on St. Lucia and St. Vincent & the Grenadines in the late 1990s,
and on St. Kitts & Nevis and Grenada between 2000-2003 (see Figure 3.5).
80
70
60
50
.
US$ Millions
40
30
20
10
0
1997 1998 1999 2000 2001 2002 2003
Grenada St. Kitts & Nevis St. Lucia St. Vincent & Grens.
Figure 3.5 FDI Inflows into Tourism Sectors, 1997-2003
Analysis of the sub-region’s total FDI inflows, into both services and non-services sectors,
shows a volatile and overall stagnant performance over the last decade. In the OECS, FDI as a
percentage of GDP fluctuated from 8 percent in the mid 1990s, up to 11 percent in the late
1990s, and 9 percent between 2000-2003. St. Kitts & Nevis displayed a strong performance in
attracting FDI inflows – more than doubling its ratio to 23 percent of GDP.
The OECS sub-region’s share of total FDI into CARICOM demonstrates similar trends. In 1998,
the OECS accounted for 17 percent of inflows into CARICOM, this share declined to 13 percent
in 2001, and then rose to 16 percent in 2003. This volatility in FDI shares is expected given the
“lumpiness” of foreign investment, particularly in the tourism sector. At the same time, FDI
14
inflows relative to all developing countries have remained stagnant and maintained a share of
0.13 percent over the last decade.
Foreign direct investment is an important source of foreign exchange for OECS member to
maintain healthy balance of payments and to boost growth and development. Given this, and the
relatively stagnant growth in FDI inflows in recent years, it is important for the OECS to focus
on a strategy to improve its investment climate. A recent survey of Grenada’s investment climate
highlighted a number of constraints to attracting FDI, including high costs of doing business,
inefficient transport operations and the high cost of capital.22 These bottlenecks appear to be
relevant for the OECS sub-region as a whole (for more information see Chapter V).
Furthermore, the OECS’s wide use of incentives to attract foreign direct investment appears to
be a liability. First, the benefits of investment incentives such as corporate income tax holidays
and concessions on import-related taxes appear limited. While investment incentives have
increased in recent years, the sub-region’s FDI performance has not improved. Second, the costs
of investment incentives appear significant. It is estimated that the annual foregone fiscal
revenue from tax concessions is approximately 9.5 to 16 percent of GDP.23 In addressing the
overall constraints to an improved investment climate, the OECS should pursue a regional
framework (preferably with all CARICOM partners) for investment incentives to avoid the
current competition that is yielding marginal benefits.
The provision of services by foreign national persons who enter a resident economy on a
temporary basis is the fourth and final mode of supply of services. Measurement of Mode 4 trade
also suffers from a general lack of statistics. The value of trade via Mode 4 can be estimated,
imprecisely, through the balance of payments (namely through compensation of employees and
worker remittances) and other migration statistics.24
Analysis of Mode 4 using these proxies suggests that this mode of supply is an important source
of foreign exchange for the region. First, the Caribbean as a whole, has the highest emigration
rates in the world with roughly 12 percent of its labor force emigrating to industrialized
countries, and it is the largest recipient of worker remittances in the world (more than 10 percent
of GDP in 2002). Second, total remittances are a relatively large source of foreign exchange in
the OECS. For example, Grenada, St. Kitts & Nevis, Dominica and St. Vincent & the
Grenadines are among the top 30 countries in terms of total remittances as a percent of GDP.25
However, questions remain regarding the benefits of remittances versus the costs of emigration.
More research in this area is necessary to understand the precise implications of Mode 4 trade for
the OECS member states.
22
FIAS (2004).
23
IMF (2005a).
24
Compensation of employees captures compensation to individuals working abroad for less than one year. Workers
remittances capture transfers from abroad by individuals working for more than one year. It is important to note that
these proxies both under- and over-estimate Mode 4 trade, since they do not distinguish between workers in services
or non-services related sectors, and do not measure those flows through unofficial channels. See World Bank (2004).
25
IMF (2005a).
15
F. Evaluating Services Trade
This analysis of OECS services trade yields a number of interesting observations and
conclusions:
• Services sectors are extremely important for OECS economies, as they accounted for 80
percent of the total exports while providing jobs for approximately two-thirds of the regional
labor force. OECS travel (tourism) services receipts, alone, accounted for 75 percent of total
services exports and represented three times the value of all merchandise exports in 2003.
• The OECS has been characterized by slowing growth of services exports, which has
translated into a general loss of market share in global services. Travel services receipts have
displayed volatility with a general downward trend (behind poor growth performances by
Antigua & Barbuda, St. Kitts & Nevis and St. Lucia). At the same time, OECS commercial
services exports have lost significant global market share (resulting from poor growth
performances by Antigua & Barbuda, Dominica and Grenada).
• The OECS has performed moderately in terms of growth of tourism arrivals, and has lost
some competitiveness in the US and European markets at the expense of Hispanic Caribbean
destinations. However, the sub-region has become more competitive in attracting intra-
regional tourists – it now captures one-fifth of all Caribbean visitors.
• Analysis of the OECS tourism product’s price competitiveness yields mixed results. At the
macroeconomic level, it appears to have gained competitiveness in the main consumer
markets from a depreciating United States dollar. At the firm level, high cost structures
appear to be pricing the OECS out of the market, particularly relative to some of the low-cost
tourism destinations in the Hispanic Caribbean.
• Tourism-related output has been weak and worsening. Tourism GDP increased 2.4 percent a
year between 1993-2000 and decreased 0.7 percent annually over the next three years. OECS
member states, particularly those that rely heavily on tourism for economic activity, should
address the constraints that are weakening their tourism competitiveness and affecting
economic output. Policy measures could focus on improving the region’s cost structures and
price competitiveness, and increasing visitor arrivals through the development of transport
links (i.e. airlift capacity).
• Diversification at various levels of the services sector can help boost export sales. For
example, economies can diversify within tourism services by tapping potential sources of
earnings such as on-shore cruise passenger expenditures and the yachting sector; diversify
within travel services by focusing on promising sectors such as education and health-related
travel; and diversify within services, in general, into potentially competitive areas such as
ICT-based services (i.e. internet gaming) and other business services.
• Trade in services via Modes 3 and 4 are important sources of foreign exchange for the OECS
countries. A majority of foreign direct investment is targeted at the tourism sector, while total
remittances (relative to GDP) into Grenada, St. Kitts & Nevis, Dominica and St. Vincent &
16
the Grenadines are among the highest in the world. More research is needed in these areas to
understand the full impact and potential of this trade to OECS economies.
In the next chapter, the report focuses on the trade performance and competitiveness of the
merchandise sector.
17
IV. MERCHANDISE TRADE
In the OECS, goods make up 20 percent of total exports and 70 percent of total imports. Between
2000 and 2002, the OECS imported four times as many goods (in value terms) than it exported,
up from approximately 2.5 times a decade earlier. Merchandise exports are relatively more
important as a source of foreign exchange in St. Kitts & Nevis and Dominica (42 and 37 percent
of total exports, respectively), and a less important source for Antigua & Barbuda (9 percent).
This chapter looks at the merchandise trade performance of the OECS sub-region and individual
member states, and attempts to evaluate their export competitiveness, specialization and trade
complementarity.
A. Trade Performance
(i) Growth and patterns in the direction of trade
In the last decade, OECS merchandise trade has been characterized by relatively stagnant exports
and rising imports. Between 1993 and 2003, total exports contracted by an annual average of 1.2
percent to reach US$ 320 million in 2003 (see Figure 4.1). Goods destined to non-OECS
CARICOM partners grew the fastest (6.5 percent a year), while exports to the EU displayed the
worst performance – declining by an annual average of 6 percent since 1993.26 Exports to the
United States and Canada displayed poor growth in the first half of the decade (-4.4 percent), but
recovered strongly with growth of almost 10 percent a year.
2,100
Imports
1,800
.
1,500
US$ Millions
1,200
900
600
Exports
300
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Source: See Tables 10-11 in the Statistical Appendix.
Figure 4.1 OECS: Merchandise Trade, 1993-2003
While the sub-region’s overall merchandise export performance was relatively weak, some
member states performed better than others. Grenada and St. Kitts & Nevis displayed relatively
26
Note that in the direction of trade section, the category “non-OECS CARICOM partners” includes The Bahamas,
Barbados, Belize, Guyana, Haiti, Jamaica, Suriname and Trinidad & Tobago. In all other cases, trade with
“CARICOM” refers to all 15 member states.
18
robust growth of 6.7 and 5.9 percent a year, respectively, while the other OECS member states
all saw their total goods exports decline during this period. At the same time, the impressive
growth of exports to non-OECS CARICOM members was the result of strong performances by
St. Lucia and Dominica (11.6 and 7.9 percent growth to that destination, respectively).
The OECS relies on markets that grant it preferential access as its major export destinations.
CARICOM, the EU, and the Unites States and Canada account for an 88 percent share of OECS
goods exports. As Figure 4.2 shows, CARICOM is the most important destination accounting for
over one-third of exports (the OECS sub-region holds a 14 percent share, while other CARICOM
partners have increased their share markedly to almost 20 percent). The EU accounts for another
third, however, this mark has declined by almost 10 percentage points. The United States and
Canada hold a 25 percent share of OECS goods exports, up from 21 percent a decade earlier. The
remaining goods are destined to Latin America (3 percent share) and other countries (9 percent).
400
350
300 Rest of World

.
250 EU
US$ Millions
200
US / Canada
150
OECS
100
50 CARICOM
(non-OECS)
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Figure 4.2 OECS Merchandise Exports by Destination, 1993-2003
The OECS, as a sub-region, has increased the share of merchandise exports destined for
CARICOM relative to extra-regional partners. Between 1993-1998, CARICOM accounted for 26
percent of exports; this share rose to 31 percent in the period 1998-2003. A closer look at intra-
regional trade flows shows that the OECS relies mainly on Trinidad & Tobago, Barbados and
Jamaica as destinations for its goods. Exports to Trinidad & Tobago have shown relatively
strong growth since 1998, with average growth of 13 percent a year to reach a one-quarter share
of the total. It is also important to note that since 1993, exports to Belize and Suriname have
displayed the fastest growth (although from a low base), evidence of growing trade links
between the sub-region and these two CARICOM partners. For the OECS, its sub-regional
partners account for 40 percent of intra-regional exports, with Antigua & Barbuda and St. Lucia
each accounting for a 10 percent share of sales.
During the period 1993-2003, OECS goods imports grew at an annual average of 6.2 percent to
reach US$ 1.7 billion. The region’s total imports displayed stronger growth in the first half of the
decade (over 9 percent a year) than in the second half (3.3 percent a year). Imports from Latin
19
America and non-OECS CARICOM partners displayed the fastest growth of 11 and 6.5 percent
a year, respectively. Imports between OECS member states demonstrated a relatively slow rate
of growth (1.6 percent a year) over the last decade. Imports grew fastest in Antigua & Barbuda
(12 percent a year), while St. Lucia displayed relatively slow growth (3 percent).
The most important source of goods for the OECS is the United States and Canada – sourcing 40
percent of imports, although this share has declined in recent years. Another 30 percent of
imports arrive from the European Union; this share has increased by roughly 5 percentage points
from the first half of the decade. Non-OECS CARICOM members account for another 15
percent, while the OECS sub-region holds a 3 percent share. Latin America and other countries
source 4 percent and 10 percent of OECS goods imports, respectively.
CARICOM is responsible for a small and decreasing share of imports into the OECS – currently
17 percent, down from 20 percent a decade earlier. The goods sourced from the CARICOM
region come predominantly from Trinidad & Tobago. Roughly 64 percent of the OECS’s intra-
regional imports come from Trinidad, up from a 58 percent share in the first half of the decade.
Trinidad & Tobago accounts for at least a 60 percent share of intra-regional imports of Grenada,
St. Kitts & Nevis, St. Lucia and St. Vincent & the Grenadines. Barbados is the source of 14
percent of intra-regional imports, while Guyana, Jamaica, St. Vincent & the Grenadines,
Dominica, St. Lucia and Grenada each hold another 3-5 percent share. For more information see
Tables 10-12 in the Statistical Appendix.
(ii) Composition of trade by sectors
Analysis of the composition of trade by sectors shows a changing trend in the export structure of
OECS member states. During the period 1993-1995, 58 percent of OECS exports were food
products, and 41 percent were manufactures. Over the next decade, manufactured exports grew
by almost 3 percent a year, driven by sales of electrical machinery, telecommunications
equipment, boats and floating structures and cosmetics; while the food sector contracted by
almost 6 percent a year (from US$ 177 million to just over US$ 100 million in 2003). As a
result, food exports now make up a 37 percent share, and manufactured products 57 percent. The
OECS did not export many fuel products during the 1990s, however, their share rose to 4 percent
in 2002-2003 as a result of rising kerosene exports by St. Lucia.27 Exports of ores and metals, and
raw agricultural materials are negligible and have remained stable at 0.8 and 0.3 percent,
respectively (see Figure 4.3).
A breakdown of the composition of exports by destination shows that the OECS exports mostly
manufactured goods to the United States and mostly food products to the European Union.
Between 1993-2003, 86 percent of exports to the US were manufactures and 13 percent were
food products. Conversely, 87 percent of exports to the EU were food products while 12 percent
were manufactures. The share of food products in total exports to the EU has been declining
steadily over the last decade, (from a 90 to 75 percent share) as a result of a weak performance in
banana exports. OECS exports to CARICOM are relatively diversified, roughly half of exports
27
Anecdotal evidence suggests that these are re-exports, that is, products that are exported in the same state (no
value-added) as they are imported.
20
are manufactures and another 40 percent are food products. Exports of fuels, ores and metals,
and raw agricultural products are negligible for all OECS countries, with the exception of St.
Lucia’s kerosene exports (or re-exports).
Figure 4.3 OECS: Sector Composition of Exports, 1993-2003
100%
80%
Percent of total
60%
40%
20%
0%
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Food & Agriculture Manufactures Fuels & Metals Other
During 1993-2003, Dominica and Grenada demonstrate a relatively balanced export structure by
sector, with food and manufactured products each accounting for half of merchandise exports.
Manufactured exports by these two countries have, similarly to the overall OECS trend,
increased their importance at the expense of food products. St. Kitts & Nevis displays a
relatively manufacture-intensive export structure. On the other hand, St. Lucia and St. Vincent &
the Grenadines are relatively food-intensive exporters.
The composition of OECS imports by sector shows that most goods coming into the region are
manufactured products. Between 1993-2003, approximately 65 percent of total imports were
manufactures, while another 25 percent share were food and raw agricultural products. The
remaining imports were fuels (8 percent share) and ores and metals (1 percent share). All these
shares have remained relatively stable over the last decade, with the exception food and raw
agricultural products – they have declined slightly in importance at the expense of fuels. This
could be the result of price effects (higher international fuel prices), rather than real changes in
the quantity traded. Imports by individual OECS member states are characterized by similar
trends, each country’s manufactured goods represent between 63 and 72 percent of imports.
Analysis of the composition of imports by destination also yields similar results. OECS imports
from the US and the EU are predominantly manufactured products (72 and 70 percent,
respectively). The remaining goods from the EU are mostly food products; from the United
States they include food, raw agricultural and fuel products. Between 1993-2003, 45 percent of
imports from CARICOM partners were manufactures, 30 percent were food products, and
another 25 percent were fuels. It is important to note that the OECS imports almost three-
quarters of its fuel needs from CARICOM member states (mostly Trinidad & Tobago).
21
(iii) Export concentration and principal products
Analysis of the sub-region’s export structure shows an improvement in the concentration of

products. Between 1993-1996, the top 20 products accounted for 70 percent of total exports; this
share decreased to 66 percent in 2000-2003. The decline in concentration appears to be related to
a decreasing dependence on bananas as a source of foreign exchange across the OECS.
Furthermore, at the beginning of the decade, four products made up half of total exports; at the
end of the decade, nine products covered this share. A breakdown of the top 20 exports to the
world shows that nine are agricultural and food products, ten are manufactures and one is a fuel-
related product (see Table 4.1).28
Table 4.1 OECS: Top 20 Products Exported to the World and CARICOM, 2000-2003
World Share Acc. CARICOM Share Acc.
Code Product Description (%) Share Code Product Description (%) Share
0573 Bananas, fresh or dried 17.8 17.8 5541 Soap; organic surface-active product 11.2 11.2
7721 Elect's such as switches & relays 9.1 26.9 04601 Flour of wheat or of meslin 10.3 21.4
07524 Nutmeg, mace and cardamoms 5.1 32.0 1123 Beer made from malt 8.4 29.8
5541 Soap; organic surface-active product 4.5 36.5 5530 Perfumery, cosmetics, etc 7.3 37.2
04601 Flour of wheat or of meslin 3.6 40.1 33421 Kerosene 4.9 42.1
1123 Beer made from malt 3.0 43.1 0573 Bananas, fresh or dried 3.5 45.6
5530 Perfumery, cosmetics, etc 2.5 45.6 11102 Lemonade & flavoured waters 3.0 48.6
77884 Elect. capacitors & condensers 2.2 47.8 04221 Rice, semi/wholly milled 3.0 51.5
7599 Parts for office machines 2.2 50.0 05481 Manioc, arrowroot, salep 2.8 54.3
77323 Electrical insulators of ceramic 2.1 52.1 08199 Sweetened forage 2.5 56.8
0611 Sugars, beet and cane 1.9 54.0 7810 Passenger motor cars, for transport 2.3 59.1
33421 Kerosene 1.8 55.8 64243 Toilet paper in rolls 2.2 61.4
05481 Manioc, arrowroot, salep 1.6 57.4 53342 Other paints & enamels 2.1 63.5
79321 Yachts & other vessels for pleasure 1.6 59.0 5542 Organic surface-active agents, n.e.s. 1.8 65.4
7810 Passenger motor cars, for transport 1.3 60.2 59141 Disinfectants packed for sale 1.8 67.2
11102 Lemonade & flavoured waters 1.2 61.5 67491 Other sheets & plates 1.8 69.0
7643 Radiotelegraphic & radiotelephonic 1.2 62.7 05797 Avocados, mangoes, guavas 1.4 70.4
04221 Rice, semi/wholly milled 1.2 63.8 04212 Rice, husked 1.1 71.5
7723 Resistors, fixed or variable 1.1 64.9 72346 Other excavating & extracting eq't 0.8 72.4
08199 Sweetened forage 0.9 65.8 81242 Lamps & lighting fittings 0.8 73.2
Top 20 Exports 65.8 Top 20 Exports 73.2
Total (1,077 products) 100.0 Total (627 products) 100.0
Source: Author using UN-COMTRADE.
The export concentration of individual OECS member states varies significantly. Export
structures are most concentrated (that is, the top 20 products account for the highest share of total
exports) in St. Kitts & Nevis (91 percent) and Dominica (87 percent). Exports are least
concentrated in Antigua & Barbuda (56 percent) and St. Lucia (75 percent). Another indicator to
measure the relative concentration of exports is the Hirschman-Herfindahl Index (HHI).29
28
Note: seven of the ten manufactured exports and kerosene were not in the Top 20 at the beginning of the decade.
29
The Hirschmann-Herfindahl Index is a measure of product concentration. It is calculated as HHIj=Σi[(Xij/Xtj)^2],
where Xij is export of product i by country j, and Xtj is the total exports of country j. The index runs from 0 to 1,
with 1 indicating the greatest concentration.
22
Calculations of the HHI for OECS member states yield similar results, namely that St. Kitts &
Nevis and Dominica enjoy the most concentrated export structures (HHI of 0.26 and 0.19,
respectively); while St. Lucia is the least concentrated with an HHI of 0.09. Product
diversification can also be measured using a proxy – the total number of product lines exported
in a given time period. Grenada shows the greatest diversification over the last decade, from
exporting 414 different products during 1993-1996 to almost 500 products a decade later. St.
Kitts & Nevis is characterized by less diversification, exporting 694 products at the beginning of
the decade, versus just 570 products in 2000-2003.
The OECS export structure to CARICOM is more concentrated than to the world, and the
concentration is increasing. The top 20 products account for 73 percent of intra-regional
merchandise exports, up from a 69 percent share during the period 1993-1996. This is also the
case in individual member states, as a few products dominate intra-regional export structures. In
Dominica, the top five exports are chemical products such as soap and disinfectants. Together,
these five products represent almost 80 percent of Dominica’s intra-regional exports. Grenada’s
intra-regional exports are dominated by one product (flour of wheat), while in St. Kitts & Nevis
this is the case with lemonade, flavored waters and margarine. In both countries, these products
make up one-third of intra-regional merchandise exports. In St. Lucia, two products (beer and
kerosene) account for half of intra-regional exports, while in St. Vincent & the Grenadines this
share is held by five food products (flour of wheat, rice, manioc, bananas and flavored waters).
For more on the principal products exported to the world and the region see Tables 14-15 in the
Statistical Appendix.
While concentrated at the product level, OECS intra-regional exports show a relatively balanced
structure by technology content.30 In 2002 (the latest year for which data was available), roughly
30 percent of intra-regional exports were resource-based manufactures, another 30 percent were
medium-technology manufactures, 25 percent were primary products, and the rest were low-
technology manufactures. The share of medium-technology manufactures in total intra-regional
exports has increased by seven percentage points since 1993, mainly due to growth of soap and
other chemical exports by Dominica. It is interesting to note that almost one-third of OECS
exports to CARICOM partners are high- and medium-technology manufactures; this share is 20
percent for Barbados, 16 percent for Jamaica and 5 percent for Trinidad & Tobago.
B. Competitiveness, Specialization and Complementarity
In this section, measures of international competitiveness, export specialization and trade

complementarity are presented through a variety of indicators. For consistency, all the indicators
(except the real effective exchange rate) are calculated at the SITC Revision 2 three-digit level of
aggregation.31
30
See Lall (2000) for more detailed information on the classification of exports by technology content.
31
One caveat to using such a high level of aggregation is that it can mask specific product performances. However,
in the case of the OECS, its export structure is characterized by three-digit sectors dominated by one or few
products.
23
(i) Real effective exchange rate
As mentioned in the previous chapter, the real effective exchange rate (REER) is a measure of
international price competitiveness. To measure the competitiveness of merchandise trade, the
IMF constructs a REER based on consumer prices and weights of unit prices of exports and
imports. Figure 4.4 displays this REER for the OECS, and shows a sustained appreciation
through the 1990s (with a slight correction between 1993-1995) that resulted in a general loss of
price competitiveness in merchandise trade during this period. Between 2001 and 2003, the
REER depreciated approximately six percent a year, driven largely by the depreciation of the US
dollar, providing an improvement in the international price competitiveness of the sub-region.
Figure 4.4 OECS: Real Effective Exchange Rate (CPI-based), 1990-2003

150
140
REER Index
130
120
110
100
90
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Note: 1990 = 100; decrease = depreciation. Source: IMF (2004a).
The IMF has calculated various REER measures for the individual OECS member states during
the period 1990-2003. These reveal that St. Kitts & Nevis and St. Vincent & the Grenadines
experienced the greatest loss in international price competitiveness (or appreciation) during the
1990s. The least appreciation occurred in Antigua & Barbuda and Dominica. The results in
Grenada and St. Lucia are somewhat contradictory, depending on the real exchange rate used.32
(ii) Market access and penetration
The OECS’s preferential access in major export markets has an impact on the region’s
competitive position relative to its competitors. The region receives preferential treatment in all
of its major export markets through CARICOM, the Cotonou Agreement (EU), the Caribbean
Basin Initiative and Caribbean Basin Trade Partnership Act (US), the CARIBCAN (Canada), and
the Generalized System of Preferences (both in the EU and US). Over the last decade, the OECS
has lost relative competitiveness, either through the erosion of preferences or through the
expansion of preferential treatment to competitors, in its major export markets. To measure the
effects of this loss of competitiveness one can analyze the levels of market penetration over time.
The OECS’s market penetration in the European Union has improved marginally over the last
decade to reach 0.02 percent of total EU imports. Of the 186 different product lines exported to
the EU, 119 of them have gained market share. However, two of the top three exports (in value
32
For more REER data and an explanation of how it is measured see IMF (2004a).
24
terms) have lost significant market penetration – namely bananas (1.2 to 0.2 percent share) and
sugar (0.5 to 0.2 percent share). With these two examples, one can see the impact of preference
erosion and the lack of competitiveness of some OECS countries – based on inefficiencies, lack
of economies of scale, and high labor and transport costs – versus other more efficient producers.
Further erosion of preferences in the EU market will likely see these trends continue. However,
there have been some important “gainers” as measured by EU market penetration. Ships and
floating structures have increased their share by 2 percentage points to 2.5 percent, spices have
increased their share by almost 1 percentage point, while feedstuffs have increased by 0.1
percentage point.
Penetration into the US market has been weaker, as the OECS share in total US imports has
halved to 0.007 percent since 1993. Of the 115 products exported to the US, just under half of
them have gained some, if only marginal, market share. As in the EU market, spices have
increased their share significantly to reach roughly 0.3 percent of US imports of that product.
Fresh fish have also increased their market share (though only marginally). The biggest “loser”
in market penetration has been sugar, going from a 1.2 percent share in 1993 to 0.02 percent in
2003. It is interesting to note that the top three products exported to the US in 1993-1996 –
dresses, jerseys and pullovers, and brassieres – all lost significant market shares to reach almost
zero in 2003. This could be the result of preference erosion in apparel production vis-à-vis
Mexico and other Central American competitors.
1993 1999 2003

Market 3 1 2
Share flour of wheat, flour of wheat flour of wheat,
> 25% vegetable oils, scrap metal
soap
2 2 6
fresh fish,
Market fruit & nuts (bananas), fruit & nuts (bananas), crustaceans & molluscs,
Share non-alcoholic beverages soap fruit & nuts (bananas),
> 10% alcoholic beverages
stone & sand, and soap

Table 4.2 OECS Market Penetration in CARICOM, 1993-2003
Analysis of the OECS sub-region’s penetration into the CARICOM market yields mixed
results.33 During the period 1993-1998, the sub-region experienced a loss of market share from
1.1 to 0.6 percent of CARICOM imports. However, this share improved slightly over the next
five-year period to reach 0.8 percent in 2003. A closer look at the product performance shows
that in 1993, three OECS products held a greater than 25 percent share of CARICOM imports,
another two held a share greater than 10 percent. As Table 4.2 demonstrates, this trend worsened
in 1999, yet recovered in 2003 to display two products above a 25 percent market share and six
33
Note that CARICOM import shares include OECS member states.
25
above a 10 percent share. Over the last decade, the big “gainers” in market penetration have been
fresh fish, alcoholic beverages, and crustaceans (improving by 10, 9 and 6 percentage points,
respectively). The big “losers” have been vegetable oils and soap (losing 38 and 16 percentage
points, respectively).
(iii) International competitiveness of exports
The international competitiveness indicator charts all OECS exports into four categories based
on supply-side performance (measured through their growth in world market share) and demand-
side trends (measured through growth in global imports).34 The four categories include:
“champions” – export sectors that increase their world market shares and face growing global
demand; “achievers in adversity” – sectors increasing their world market shares while global
demand falls; “underachievers” – sectors facing growing demand but with supply-side
constraints leading to declines in market share; and “declining sectors” – those exports facing
constraints in both supply and demand, with falling market shares and decreasing growth in
global imports.
This competitiveness analysis is useful because it identifies products that face supply- and
demand-side constraints. In response, countries can pursue export promotion or niche marketing
strategies to improve supply performance, and boost international demand by opening new
markets via multilateral trade liberalization. At the same time, one can identify in which sectors
these efforts may be least cost-effective. Figure 4.5 shows OECS exports divided into the four
categories, with the size of the “bubble” representing the export value between 1997-2003.
Figure 4.5 Competitiveness of OECS Exports, 1997-2003
UNDERACHIEVERS 12% CHAMPIONS

elect. switches
.
soap elect. machinery

Avg. Ann. Growth in World Imports
fruit (bananas) 6%
alc. beverages
spices
0%
-40% -20% 0% 20% 40% 60%
sugar rice flour of wheat

-6%
DECLINING SECTORS ACHIEVERS IN ADVERSITY
-12%
Avg. Ann. Increase in OECS World Market Share
34
Here, OECS excludes Antigua & Barbuda and Montserrat due to lack of comparable data. This indicator was
calculated at the SITC Revision 2, three-digit level of aggregation and excludes re-exports. International demand is
measured by the average annual growth in world imports between 1997 and 2003. The national or regional export
26
• 79 product groups accounting for 36 percent of total exports are classified as “champions”. In
the top 20 exports there are eight “champions”, three of these products are food and
agricultural products, while the other five are manufactures. Electrical switches and relays,
electrical machinery and ships are some of the best performers having gained significant
world market share while facing robust global import growth.35
• 14 product groups representing 4 percent of total exports are “achievers in adversity”. One
product, flour of wheat, dominates this category. It increased its world market share by an
average 1 percent a year between 1997-2003, while global imports contracted by 8 percent a
year over the same period.
• 89 products accounting for 53 percent of total exports are “underachievers”. One export
sector, fruit and nuts (namely, bananas), accounts for half of all underachievers (in value
terms) and has lost an average 12 percent a year in world market share.
• 15 products representing 6 percent of total OECS exports are “declining sectors”. Two of
these products are sugar and rice. For more information see Tables 16 in the appendix.
The international competitiveness of the top 20 exports was also calculated for the individual
OECS member states to identify the sectors that could benefit from additional national resources.
• In Dominica, 16 of the top 20 products (more than 80 percent in value terms) are
“underachievers” – led by the top two products bananas and soap. Two “champions”
displaying significant increases in world market shares are perfumery and cosmetics, and
non-alcoholic beverages.
• Between 1997 and 2003, Grenada had 11 of its top 20 products (more than 50 percent in
value terms) labeled as “champions”. This category was led by its most important export
(spices, namely nutmeg), as well as, equipment for distributing electricity, and paper and
paperboard.
• St. Kitts & Nevis had 7 “champions” representing 60 percent of total exports. Electrical
switches and relays and electrical machinery represent the majority of this category, while
sugar (the second most important export) dominated the “declining sectors”.
• For St. Lucia, 11 of its top 20 exports were “champions”, however, they accounted for only
one-quarter of exports in value terms. Of these, alcoholic beverages, kerosene and
telecommunications equipment experienced strong growth in world market shares. The
country’s top export (bananas) was the biggest “underachiever”.
performance is measured by taking the average annual growth of the exporter’s world market share in each three-
digit product/sector over the same period.
35
Electronics exports from St. Kitts & Nevis include cable network switches and light dimmer switches from two
firms (sourcing the North American markets), which enjoy comparative advantages versus Asian competitors in
proximity (speed to market and sourcing of specialized skills), cheap access to inputs, and language. See World
Bank (2005).
27
• Finally, St. Vincent & the Grenadines had 15 of its 20 exports as “underachievers” or
“declining sectors” (accounting for over 90 percent of total exports). Of the country’s top 13
exports all lost world market shares, with 8 of them being agricultural and food products.
(iv) Export specialization
The OECS’s export performance and international competitiveness can also be evaluated using
the export specialization index (ESI).36 It measures a country’s (or region’s) international
specialization in specific products by dividing that product’s share in a country’s (or region’s)
total exports, by its share in world imports. It is assumed that if a specific product’s share in
OECS exports is greater than the product’s share in world imports, that is, an ESI greater than
one, then the region is specialized in production and appears to be an efficient producer of that
product. Trends in ESI over time and across different markets can help identify increasing (or
decreasing) specialization, comparative advantages and sectors where promotional resources can
be targeted.37
The OECS appears to be specialized in 32 out of a total of 222 products exported to the world
between 2000-2003. Of these 32 products, 24 of them either increased or maintained their ESI
from earlier in the decade (1993-1996); their breakdown is relatively diversified between food
and agricultural products (10 of them), crude materials (7) and manufactures (7). Of the 190
products that do not display an ESI, 10 of them lost it between the two periods. It is interesting to
note that eight of these were manufactures, namely apparel products.
Specialization versus different export markets allows one to compare (both at the aggregate and
sectoral levels) export performances in the region’s major export destinations. The OECS
appears specialized in 26 out of 192 different products exported to CARICOM. Of the 16
products that increased their ESI, half of them did not appear specialized at the beginning of the
decade – they include products such as stone, perfumery, image and sound recorders and some
apparel sectors. Of the remaining 166 products that did not have an ESI in 2000-2003, 12 of
them (8 of which are manufactures) lost it from the earlier period of 1993-1996.
The OECS was specialized in 18 out of 166 products exported to the EU in 2000-2003, 16 of
these having increased their ESI from 1993-1996. Two products, sugar and bananas, either
maintained or decreased their specialization, a sign of preference erosion and weakening
competitiveness over the last decade. In the US market, the OECS appears specialized in 35 out
of the 189 products exported to that destination, although 13 of these (mostly manufactures) have
experienced a decrease in their ESI. Twenty products have increased their specialization – 5 of
them are food and agricultural products, 3 are crude materials, 11 are manufactures (namely
36
The ESI is calculated as ESIijk= (Xijk/Xijt) / (Mjk/Mjt), where Xijk is the exports of partner i to partner j of
product k, Xijt is the total exports of partner i to partner j, Mjk is the imports of partner j of product k, and Mjt is the
total imports of partner j. Note that: (1) re-exports, that is a country’s recorded exports that have not received any
domestic value added, are not included in the calculation of the ESI; and (2) the index was calculated at the SITC
Revision 2, three-digit level of aggregation.
37
One weakness of the ESI indicator is that it does not isolate the effects of preferences on export performance in
particular markets, which could lead to distortion in trade flows and weak conclusions regarding competitiveness.
28
electrical equipment) and 1 product is not classified elsewhere. It is interesting to note that of the
19 products that lost ESI over the decade, half are in apparel sectors. For a breakdown of ESI by
export market see Table 4.3 below.
Table 4.3 OECS: Trends in Export Specialization Index by Destination, 1993-96 to 2000-03
222 World 192 CARICOM 166 European Union 189 United States
Increase ESI No. Products No. Products No. Products No. Products
Total 22 16 16 20
Food/Tobacco 9 (034,036,046,054,075, 6 (036,046,057,075, 7 (034,042,054,072, 5 (022,025,046,

081,098,111,112) 081,112) (075,098,111) 075,111)
Crude Materials 6 (273,533,551,553, 4 (273,282,553,591) 3 (273,551,562) 3 (263,273,551)
591,592)
Manufactures 7 (691,723,759,772,773, 6 (674,736,763,812, 6 (759,763,772,773, 11 (621,657,723,727,759,772,
778,793) 844,846) 793,892) 773,778,786,881,892)
Others 0 0 0 1 (951)
No Change
Total 2 5 1 2
Food/Tobacco 1 (042) 3 (042,054,122) 1 (061) 1 (034)
Crude Materials 1 (554) 2 (288,592) 0 0
Manufactures 0 0 0 1 (764)
Others 0 0 0 0
Decrease ESI
Total 8 5 1 13
Food/Tobacco 4 (057,061,072,091) 2 (091,111) 1 (057) 2 (054,098)
Crude Materials 0 2 (533,554) 0 3 (269,554,592)
Manufactures 3 (642,716,845) 1 (642) 0 7 (656,692,716,771,

793,845,847)
Others 1 (941) 0 0 1 (941)
World CARICOM European Union United States
No ESI
Total 190 166 148 154
of which lost: 10 12 1 19
Food/Tobacco 0 1 (058) 0 3 (036,057,072)
Crude Materials 2 (269,424) 1 (424) 0 3 (277,282,553)
Manufactures 8 (696,697,843,844, 8 (641,681,697,723, 1 (893) 13 (658,694,696,742,744,842,

846,848,893,897) 775,831,881,899) 843,844,846,848,884,893,897)
Others 0 2 (941,961) 0 0
Note: See Table 16 of the Statistical Appendix for a list of SITC Revision 2, three-digit sectors/products.
Source: Author's calculations using UN-COMTRADE.
29
(v) Trade complementarity and intensity
Analyzing trade complementarity is important to get a measure of how a country’s (or region’s)
export supply fits into the import demand of its trading partners. In this case, the trade
complementarity index calculates the OECS’s export commodity profile versus the import
commodity profiles of its major trading partners (CARICOM, US and EU) relative to the world
norm.38 The TCI has a threshold of one, with an index greater (lower) than one indicating a
greater (lower) level of complementarity between trade commodity profiles.
Table 4.4 shows that the OECS has a relatively high and increasing degree of complementarity
with CARICOM – as the index has gone from 1.60 to 1.92 between 1993-1998 and 1998-2003,
respectively. On the other hand, while trade complementarity with the EU has been above the
world norm, its strength has been decreasing over time. Relative to the United States, the degree
of complementarity has increased, although marginally, yet is still below the world average. This
analysis only shows that intra-regional trade is relatively complementary for the OECS countries,
and should not be interpreted as a priority list for desirable export destinations.
Export Profile Import Profile 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 93-98 98-03
OECS CARICOM 1.4 1.6 1.7 1.5 1.8 1.5 2.2 1.9 2.0 2.0 1.9 1.60 1.92
United States 0.8 0.8 0.7 0.7 0.7 0.8 0.7 0.8 0.8 0.8 0.8 0.75 0.77
European Union 1.2 1.2 1.2 1.2 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.18 1.11
Dominica CARICOM 1.3 1.7 1.9 1.9 1.9 .. 2.3 2.3 2.1 2.3 1.9 1.72 2.16
United States 0.6 0.6 0.5 0.5 0.5 .. 0.6 0.6 0.6 0.6 0.6 0.56 0.56
European Union 1.3 1.4 1.4 1.4 1.4 .. 1.3 1.3 1.3 1.3 1.3 1.36 1.30
Grenada CARICOM 1.5 1.7 1.8 1.6 1.8 1.6 2.8 1.5 1.7 2.4 2.8 1.67 2.13
United States 1.0 0.9 0.8 0.8 0.9 1.0 0.9 0.9 0.9 0.8 0.9 0.89 0.89
European Union 1.1 1.1 1.1 1.0 1.0 1.0 0.9 0.9 0.9 1.0 1.0 1.05 0.96
St. Kitts CARICOM 2.1 2.5 2.6 2.6 2.3 .. 1.7 1.7 1.4 1.0 1.1 2.42 1.40
& Nevis United States 0.8 0.7 0.7 0.7 0.8 .. 0.8 0.8 0.7 0.8 0.7 0.76 0.76
European Union 1.0 0.9 0.9 0.9 0.9 .. 0.9 0.9 0.9 0.9 0.9 0.91 0.90
St. Lucia CARICOM 0.7 0.8 0.9 0.6 0.8 0.8 1.1 1.2 1.0 1.4 1.4 0.79 1.17
United States 1.0 0.9 0.9 0.8 0.8 0.8 0.9 1.0 1.0 0.9 1.0 0.87 0.94
European Union 1.2 1.3 1.3 1.3 1.3 1.3 1.3 1.2 1.2 1.1 1.1 1.27 1.21
St. Vincent CARICOM 2.7 2.7 2.6 2.0 2.7 2.3 3.3 2.6 3.6 2.9 3.0 2.49 2.95
& the Grens. United States 0.6 0.6 0.6 0.6 0.5 0.6 0.6 0.6 0.6 0.7 0.7 0.60 0.64
European Union 1.2 1.1 1.1 1.1 1.0 1.1 1.1 1.1 1.1 1.2 1.2 1.10 1.12
Note: OECS excludes Antigua & Barbuda and Montserrat.

Table 4.4 Trade Complementarity Index, 1993-2003
38
The trade complementarity index is defined as TCIij= Σk [(RCAik) * (RCDjk) * (Mwk/Mw)], where RCAik=
(Xik/Xi) / (Mwk/Mw) and RCDjk= (Mjk/Mj) / (Mwk/Mw). RCAik is the revealed comparative advantage of
country or region i in product k, RCDjk is the revealed comparative disadvantage of country or region j in product k,
and Mwk/Mw is the share of product k imports in total world imports. Note that X and M signify exports and
imports, respectively.
30
There are some interesting points to highlight at the national level. First, Dominica has the
lowest degree of complementarity with the United States (relative to other OECS countries),
since the island’s trade is dominated by a few products that do not figure prominently in the US
import profile. Second, St. Kitts & Nevis is the only OECS country where the degree of
complementarity with CARICOM has worsened over time (as measured between the two periods
1993-1998 and 1998-2003). Finally, in the latter period, St. Lucia and St. Vincent & the
Grenadines display the highest degree of complementarity with the United States and
CARICOM, respectively, relative to other OECS member states.
While the OECS appears to have a strong and increasing degree of complementarity with
CARICOM, bilateral trade between member states enjoy different levels of intensity. The trade
intensity index can be used to explore the strengths or weaknesses of bilateral trade links
between OECS and other CARICOM partners. The indicator measures the intensity of trade
flows, with an index greater (lower) than one indicating bilateral trade flows greater (lower) than
expected on the basis of the trading partners importance in intra-regional trade.39 During the
period 1995-2003, all OECS countries display a higher than expected degree of intensity with
Trinidad & Tobago. Dominica is the only OECS country to have a high index with Guyana and
Jamaica. At the same time, Barbados seems to show greater than expected intensity with
Grenada, St. Lucia and St. Vincent & the Grenadines. For more detailed information on the trade
intensities among CARICOM partners see Table 17 in the Statistical Appendix.
C. Evaluating Merchandise Trade
On the basis of this analysis of trade performance and competitiveness for the OECS sub-region
and individual member states, a series of important conclusions can be drawn:
• Over the last decade, OECS merchandise trade has been characterized by relatively stagnant
exports and rising imports. Since 1993, exports destined to non-OECS CARICOM partners
have experienced the fastest growth; those destined to the European Union have experienced
the worst growth performance.
• The OECS trade structure shows an improvement, over the last decade, in the concentration
of export products. During this period the number of products that account for half of OECS
exports to the world has doubled – in part due to a decrease in dependence on bananas for
foreign exchange.
• The OECS, as a sub-region, experienced a general loss of international price competitiveness

in the 1990s as measured by consistent appreciation of its real effective exchange rate. Since
2001, this trend has been reversed, in large part due to the depreciation of the United States
dollar.
39
The trade intensity index is calculated as TIIij= (Xij/Xic) / (Mj/Mc), where Xij/Xic is the share of country i
exports to partner j in country i’s intra-regional exports; and Mj/Mc is the share of partner j in total intra-regional
imports.
31
• Analysis of the OECS’s international competitiveness highlights some important
conclusions. First, in terms of market penetration, the sub-region has “gainers” in spices to
the US and EU, and seafood and alcoholic beverages to CARICOM; and “losers” in bananas
and sugar. Second, most OECS exports (in absolute and value terms) are “underachievers”
and dominated by bananas. Excluding this product, a majority of exports are “champions”
characterized by electrical switches and relays, electrical machinery, ships and floating
structures, spices and alcoholic beverages.
• The OECS sub-region’s export specialization appears to be relatively diverse, with food and
agricultural products, crude materials and manufactures all enjoying equal shares (in absolute
terms) of total exports. It appears that some comparative advantages have been established
over the last decade, especially in electrical equipment and some seafood products. Again,
the worst performances in terms of specialization were by bananas, sugar and certain apparel
products.
• The OECS export profile appears most complementary to the CARICOM import profile.
This complementarity has increased over time, perhaps, one reason why intra-regional
exports have performed better than those to extra-regional destinations.
The previous chapters have looked at OECS performance and competitiveness in both services
and merchandise trade. In the next section, the focus turns to competitiveness issues, through the
production and trade cost structures faced by firms in the region.
32
V. COMPETITIVENESS THROUGH COST STRUCTURES
In the previous chapters, this report identified the importance of trade to OECS member states,
and analyzed the performance and competitiveness of both merchandise and services sectors and
products. To complement this analysis, it is important to evaluate factors that impact the
competitiveness of firms, given that ultimately, it is firms that produce goods and provide
services, trade and compete. The OECS sub-region is characterized by relatively high cost
structures, including inputs and factors of production (goods, services, capital and labor) and
infrastructure services (transportation, telecommunications and electricity), which are affecting
the private sector’s capacity to compete in world markets. However, countries can eliminate
some of these cost constraints through domestic reforms and regional integration initiatives.
A. Inputs and Factors of Production
(i) Labor
Labor markets in OECS member states are characterized by relatively high wages and low
flexibility compared to other Caribbean and middle-income countries. Problems arise from two
sources: (i) high wages across skill levels and sectors appear to be rising faster than productivity
and are reflected in high unemployment rates; and (ii) the sub-region suffers from skill
mismatching and shortages. This suggests a failure in the efficient allocation of labor resources,
which translates into higher costs and a loss of competitiveness for those firms using this factor
of production.
There are four main factors attributed with the misalignment between wages and productivity.
First, OECS countries are characterized by strong unions – unionization rates range from 47
percent to 12 percent of the labor force in Grenada and St. Vincent & the Grenadines,
respectively. These labor unions exert their political and bargaining power during collective
negotiations and are responsible, rather than productivity levels, for determining wages. Second,
OECS countries have large public sectors that impact wage setting across the economy. Since the
public sector employs more than 20 percent of the labor force, increases in government wages
for specific labor groups also push up wages for private sector firms seeking similar services.
Third, rigid labor regulations such as minimum wage laws make it difficult to hire and fire
workers. This affects the ability of firms to adjust their labor allocation to changes in
productivity. Finally, remittances also impact the functioning of labor markets by raising
reservation wages (that is, the specific wage rate an individual requires to work in given market)
since their income is supplemented by external sources.
The OECS also appears to be suffering from skills mismatching and a shortage of skilled
workers, which are impacting efficiency and competitiveness across the sub-region. A shortage
of skills is reported in both the public and private sectors. This is due to a relatively low level of
educational attainment, in terms of quality and access, to secondary and tertiary education. Skills
mismatching means that those skills demanded by growing sectors are not available in the
resident economy. Workers in the sub-region are unable to shift into new, perhaps expanding,
33
sectors because they either lack skills or enjoy skills not demanded in the growing sectors. A
lack of access to re-training and the safety nets to afford foregone income further exacerbate the
problem.40
In its latest Article IV consultation with the countries of the Eastern Caribbean Currency Union,
the IMF provides a list of recommendations to address the labor market rigidities and
inconsistencies. These include the implementation of performance and productivity based wage
increases, civil service reform, and focus on raising the quality and access to education and
training.41 Another important strategy to address skill shortages and mismatching is the mobility
of labor within the region. As a key element of the CSME, the free movement of labor would
allow greater flexibility and efficiency in the allocation of labor resources to firms and sectors in
need. Implementation of this policy (currently targeting certain skilled labor groups) and analysis
of the movement of unskilled labor should be CSME priorities for the OECS.
(ii) Capital
Capital is another important factor that impacts the capacity of firms to produce and trade at
competitive levels. While OECS member states have formed a currency union, integration of
their financial markets remains fragmented. A number of financial regulations still constrain the
free movement of capital throughout the sub-region. This segmentation, within the sub-region
and in CARICOM as a whole, is hindering access to capital on favorable terms, ultimately
constraining private sector-led economic diversification and growth.
Firms operating in the OECS appear to be credit constrained, without access to the financial
instruments they need to expand operations and grow. The OECS financial sector is dominated
by commercial banks, and therefore bank credit is a major source of financing throughout the
sub-region. However, bank credit, or debt financing in general, is not the appropriate method of
financing for those risk-taking enterprises that will fuel export diversification and growth.
Instead, these firms require access to equity financing, an area of the financial sector that appears
underdeveloped across the OECS. Furthermore, the commercial banking sector is focused on
long-term credit instruments, making trade financing difficult to access. There are few export-
import financing schemes in the sub-region; those in place, such as the ECCB’s trade financing
mechanism, appear to be burdensome and inefficient.
Firms in the sub-region also suffer from the high cost of borrowing. In the late 1990s, prime-
lending rates averaged 9-12 percent, while other lending rates reached a maximum of 28 percent
across the OECS (see Table 5.1). Some factors that are credited with increasing the cost of
lending include the financial system’s lack of economies of scale, a reduced capacity to spread
risk, and an established floor on deposit rates.42 The high cost of capital puts resident firms at a
competitive disadvantage relative to firms in other markets that have access to financing on
cheaper terms.
40
World Bank (2005).
41
IMF (2005a).
42
World Bank (2005) and IMF (2005a).
34
Problems of high cost and poor access to capital in the OECS could be addressed through
regional integration initiatives. First, while the Eastern Caribbean Stock Exchange has yet to
improve the private sector’s access to capital, a CARICOM-wide stock exchange could provide a
larger pool of equity to finance new and growing ventures. A Regional Capital Markets
Committee is working with CARICOM’s Council for Finance and Planning (COFAP) to develop
recommendations for a regional stock exchange. Second, a CARICOM Financial Services
Agreement (drafted in 2004 but not yet implemented) strives to reduce the barriers and
inefficiencies to cross-border financial flows, and enhance transparency and standards in
financial systems across the region. Third, the establishment of the Caribbean Credit Rating
Agency should provide financial institutions and investors the necessary tools (i.e. risk profiles)
to make informed lending decisions.43 This should help spread risk and lower costs. It is
important that the OECS engage in these regional initiatives as a strategy to reduce the cost of
lending, improve the access to different financial instruments, and hence, promote the
competitiveness and development of its private sector.
Table 5.1 Commercial Banks' Lending Rates, 1995-2004

Prime Rates Other Rates
Lending Rates (%) 1995 2000 2004 1995 2000 2004
Antigua & Barbuda 10.0 - 11.5 10.0 - 11.5 10.0 - 11.5 7.0 - 24.0 6.5 - 24.0 3.0 - 23.6
Dominica 9.0 - 10.5 9.5 - 10.5 8.5 - 10.5 7.5 - 19.0 7.5 - 20.8 7.5 - 20.0
Grenada 9.5 - 10.5 9.5 - 10.5 8.5 - 9.5 7.0 - 16.0 5.8 - 16.0 3.0 - 16.0
Montserrat 10.0 - 10.5 9.5 - 10.5 9.5 - 9.5 9.0 - 27.6 9.0 - 27.6 9.0 - 19.5
St. Kitts & Nevis 9.5 - 12.0 9.5 - 11.0 8.5 - 9.0 9.0 - 21.6 8.5 - 19.9 7.5 - 22.0
St. Lucia 9.0 - 10.0 9.5 - 10.5 9.5 - 10.0 8.5 - 23.0 7.5 - 23.0 6.0 - 23.5
St. Vincent & Grens. 9.5 - 11.0 9.5 - 11.0 9.0 - 11.0 7.0 - 16.5 5.0 - 16.5 3.0 - 21.6
OECS 9.0 - 12.0 9.5 - 11.5 8.5 - 11.5 7.0 - 27.6 5.0 - 27.6 3.0 - 23.6
Source: ECCB (2005).
(iii) Inputs as goods and services
The competitiveness of firms is also affected by relative prices of goods and services used as
production inputs. While most imports into the OECS are final goods rather than intermediate
goods, sectors such as tourism depend on some imports as inputs for the final “tourism product”.
At the same time, many of these inputs are subject to the highest levels of protection (via tariff
and non-tariff barriers) from both intra- and extra-regional competitors. This external protection
may benefit domestic producers in OECS countries, but it also adds “at-the-border” costs to
domestic tourism and hospitality firms, and impacts their ability to compete with firms in other
countries with access to inputs at world prices.
One of the most protected sectors in the sub-region, which is also a key input to the tourism
industry, is the beverage sector. For example, the World Bank reports that in 2004, St. Kitts &
Nevis was applying unauthorized import duties on beer and aerated beverages, St. Vincent & the
Grenadines was applying a tax on CARICOM rum imports, and Antigua & Barbuda, Grenada,
Dominica and St. Vincent & the Grenadines were applying environmental surcharges on intra-
43
IDB (2005).
35
regional bottled beverage imports.44 Furthermore, this sector enjoys high levels of protection
relative to other imports. For example, beer imports to Antigua & Barbuda and Dominica are
subject to a 45 percent and 75 percent MFN tariff, respectively; while vodka faces a 45 percent
tariff when entering St. Lucia. Unfinished liberalization agendas can have serious implications
for developing economies. Applying measures of protection to benefit some domestic interests
may also weaken the competitiveness of other equally important domestic enterprises.
B. Infrastructure Costs
(i) Transport
For firms operating in small island economies, competitive access to reliable transport services is
a critical element for their overall competitiveness. Firms using maritime services to transport
their goods to market face both shipping and port handling costs. Freight costs across the OECS
appear to be provided at competitive prices, particularly for intra-regional transport. However,
many traders in the sub-region cite a lack of reliable and quality service as their main
competitive disadvantage. Irregular maritime transport services add to operational costs, since
firms have to increase their inventories to compensate for the uncertainty. At the same time, most
ports in the sub-region are publicly owned and operated, making related port costs high as a
result of outdated labor regulations and inefficient operations.45
Air transport services also impact the cost structures of firms operating in the region, particularly
those in the tourism industry. It is unclear if the current levels of airlift and airport infrastructure
capacities throughout the member states are adequate to promote growth. OECS countries could
benefit from more regional cooperation on air transport issues since it could address current
inefficiencies and high costs. The air transportation issue requires more attention, in order to
improve the cost structure for traders and service providers across the OECS member states.
(ii) Telecommunications
The efficient provision of telecommunications services within an economy is another important

factor in determining the competitiveness of firms, particularly those operating in services-
related sectors. In the OECS, while access to fixed and mobile telephony is widespread, the cost
appears to be higher than those of its competitors. For example, a three-minute call to New York
from the OECS costs 1.5 times the rate from other countries in the Caribbean (on average); for
local calls this ratio is 2 times the cost.
The internet is an increasingly important mode of communication around the world and
particularly for developing countries. Many small states appear to be aggressively expanding
their internet connectivity and usage as a strategy to overcome scale and geographic
disadvantages. However, in the OECS, commercial internet access is very expensive, much more
expensive than for residential use. A firm in Antigua & Barbuda reported that its unit cost per
44
World Bank (2005).
45
Ibid.
36
transaction over the internet (through a T1 connection) was 25-30 percent more expensive than
for counterparts in Europe.
While the cost of access and usage of telecommunications services for OECS firms appear to be
high, the sub-region has made significant progress in recent years. OECS governments have
identified the lack of competition in the telecommunications sector as a key constraint to the
price competitiveness. In response, some member states implemented the OECS
Telecommunications Reform Project, whose main output has been the establishment of the
Eastern Caribbean Telecommunications Authority (ECTEL). This regional regulatory agency
has, in concert with national telecommunications regulators, liberalized the sector and lowered
prices, and has been able to attract additional investment and increase employment in the
sector.46 However, more work is needed to continue this trend and further improve the price
competitiveness of private sector firms in the sub-region that rely on telecommunications for
their operation.
(iii) Electricity
The high cost of electricity is cited as the biggest infrastructure-related constraint for firms
operating in the OECS. In Grenada, electricity costs appear to be three times higher than those in
the United States, and are identified by foreign firms as a key constraint to doing business on the
island. Furthermore, electricity costs in Dominica and St. Vincent & the Grenadines are three
times higher than in the Dominican Republic, and nine times higher than in Trinidad & Tobago
(see Figure 5.1).
Figure 5.1 Electricity Costs

30
25
US cents per kWh
20
15
10
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om
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Source: World Bank (2005).
46
Ibid.
37
Perhaps more problematic than the high cost, is the unreliable supply of electricity. In a recent
IFC survey of 201 firms in Grenada, half claimed to have experienced electricity outages in the
last 12 months, while 13 percent claimed problems at least once a month. Power interruptions
often affect a firm’s output and therefore have a serious impact in terms of lost revenues, as well
as additional costs in items such as private generators.47
There are four factors that adversely impact the price of electricity in OECS countries. First, the
cost of energy for electricity generation is high. Most public utilities in the sub-region use diesel
fuel to power generators, rather than a heavier more economical fuel source. Second, there is an
inherent scale problem in terms of the cost of supply in small capacity generation assets.
Generation systems below 150 megawatts, which characterize the systems in all OECS countries,
are relatively more expensive to buy and operate than larger systems. Third, utility companies in
the OECS suffer from substantial operational inefficiencies. In Dominica, almost one-fifth of
output is lost during transmission and distribution; this figure is around 14 percent for Grenada
and St. Lucia (an optimal rate is considered between 4 and 11 percent). Fourth, many OECS
governments provide subsidies or transfers in electricity pricing from large commercial
consumers to households. As a result of higher utility prices, large firms operating in the OECS,
particularly in the tourism sector, are placed at a relative disadvantage.
A 2005 World Bank report provides some recommendations to address the high cost and poor
reliability of electricity in the OECS. They include: (i) strengthening the regulatory structure in
the OECS member states to improve operations, investment and pricing in the utility sector; (ii)
attract private investment to play a greater role in different aspects of supply; and (iii) pursue a
regional and international process of benchmarking to improve standards across the sub-region.48
In sum, the high cost of factors of production and infrastructure-related services in the OECS is
hurting private sector competitiveness. But, are the high costs merely a problem of scale, or also
problems of mismanagement and inefficiency? Issues of scale definitely impact the cost
structures of small island economies, particularly in areas such as utilities and access to capital.
An effective way to address the lack of economies of scale can be through regional integration
initiatives. At the same time, high cost structures across the sub-region are also attributed to
mismanagement and inefficiencies. Countries should engage in domestic reform programs that
focus on problem areas, such as labor markets and education, maritime transport and electricity.49
47
FIAS (2004).
48
World Bank (2005).
49
It is important to note that in September 2005, the World Bank approved a new Country Assistance Strategy for
the OECS offering assistance of US$ 103.4 million between 2005 and 2009. The strategy focuses on improving
competitiveness and promoting regional approaches to reach economies of scale through a variety of projects
including public sector management, skills enhancement and public utilities reform.
38
VI. TRADE AND INTEGRATION: A STRATEGY FOR GROWTH
Trade and integration are fundamental factors for sustainable economic growth in the small
islands across the Eastern Caribbean. The OECS faces a number of obstacles that impact the
capacity of its firms to compete in the global marketplace, and hence, affect export sales and
economic growth. What could be driving this weak performance? On one hand, the small size of
markets and firms across the OECS limit resources, promote inefficiencies, and make it difficult
to realize economies of scale. At the same time, firms face competitive disadvantages in high
costs of doing business and an erosion of preferences in major export markets. In response to
these growth bottlenecks, commitment to a strategy to improve competitiveness through
unilateral action (innovation and entrepreneurship), a multilateral agenda (to seek market access
and special treatment, and promote internal reforms), and regional integration (to deepen
regional links) has the potential to improve export performance and restore economic growth
across the region.
A. Exports and Growth
The OECS is characterized by small and open economies that are deeply integrated into the
global trading system. A recent IMF study suggests that growth in the Caribbean is “strongly
influenced” by export performance.50 Hence, trade (and particularly exports) is extremely
important for the region’s development prospects. However, export growth in recent years has
been weak and worsening. OECS exports grew an average 4.7 percent a year in the early 1990s,
3.7 percent in the late 1990s, and contracted 0.1 percent since 2000. Similarly, economic output
for the OECS sub-region has deteriorated, from roughly 5.7 percent a year in the 1990s, to 2.1
percent a year since 2000.51 This section provides an overview of the challenges and
opportunities for higher export and economic growth.
(i) Challenges in scale, cost and preference erosion
The small size of markets and firms operating in the region makes competing with foreign
firms difficult. OECS member states lack a diverse range in domestic resources, making them
dependent on few export products for foreign exchange. Small market size facilitates the
presence of monopolies and a lack of domestic competition, especially in trade-related services,
translating into additional costs for firms. OECS firms are mostly characterized as small and
medium enterprises, therefore they have limits to resources for export promotional efforts and
research and development. Furthermore, firms may find it difficult to achieve economies of scale
and compete with larger, more efficient foreign suppliers. For example, Caribbean banana
producers are characterized as small (less than 1 hectare), often family-owned ventures operating
on mountainous terrains that lack mechanized technology. On the other hand, Latin American
and African producers are large, highly mechanized plantations between 50 and 5,000 hectares.52
50
IMF (2005a).
51
Source: Exports (goods and services) using COMTRADE and WTO data; GDP using IMF data.
52
Note: three multinational firms (Chiquita, Dole and Del Monte) control a majority of Latin American and African
banana producers. See NERA/OPM (2004).
39
The high cost of doing business in the OECS puts firms at a comparative disadvantage
relative to main competitors. As Chapter V illustrates, firms operating in the OECS sub-region
face high cost structures as a result of high wages and poor flexibility in labor markets, high cost
and poor access to capital, and high at-the-border costs for many imports used in production. At
the same time, poor reliability and high cost of infrastructure across the region create an
additional burden to firms trying to compete in domestic and foreign markets.
High cost structures affect both merchandise and services firms. In goods sectors, the high cost
of capital makes it difficult for firms to develop new niche products, identify buyers and market
their goods effectively. High infrastructure costs also impact the provision of services. For
example, the tourism industry faces relatively high electricity and transport costs, making it
difficult to compete with other low-cost competitors offering a similar tourism product. As a
result, competitors have been gaining visitor arrival market shares. Over the last decade, the
Hispanic Caribbean destinations have gone from holding 28 percent to 37 percent of total
Caribbean stopover arrivals, and from 8 percent to 17 percent of cruise passenger arrivals.
Reducing the high cost of doing business in the OECS would impact all sectors of the economy
and improve the capacity of both goods and services firms to compete.
The erosion of preferences for agricultural products entering the EU market is an

important challenge for the OECS. The European Commission recently announced a 39
percent cut in the guaranteed price of white sugar for ACP sugar exporters. Reform of the EU
sugar regime is expected to take place over four years and cost Caribbean sugar producers
approximately € 100 million a year. In the OECS, St. Kitts & Nevis’s economy is the most
dependent on sugar as a source of foreign exchange since raw sugar exports account for 13
percent of total exports. However, the erosion of preferences and the uncompetitive nature of the
island’s sugar production prompted officials to shut down the state-owned sugar industry in July
2005. It is estimated that the government of St. Kitts incurred annual losses of 3 percent of GDP
to sustain sugar industry operations. While this is a challenging step for St. Kitts & Nevis,
effective and timely management and international technical assistance have helped mitigate the
impacts of the shutdown.
Another agricultural product facing increasing erosion of preferences in the European market is
bananas. In 2001, the European Commission agreed to move from a tariff-quota to a tariff-only
system governing MFN banana imports. In September 2005, the proposed tariff for MFN
bananas was announced at € 187 per ton.53 Regional leaders and experts have indicated that this
new tariff will have serious implications for the relative market access of windward island
bananas. Bananas account for a large share of merchandise exports in three OECS countries:
Dominica (20 percent of exports), St. Lucia (31 percent) and St. Vincent & the Grenadines (32
percent). The effects of preference erosion have already been felt across the sub-region as banana
exports for these three countries, together, have fallen 75 percent since the early 1990s, when the
EU began removing protectionist measures for banana imports.
53
Note that the tariff rate quota regime included a € 75 per ton in-quota rate for 2.2 million tons and a € 680 per ton
out-quota rate.
40
The erosion of preferential access to major export markets poses a significant problem for OECS
countries. Yet, it also poses an important opportunity to negotiate for adjustment and
restructuring assistance for uncompetitive sectors. For example, more research is needed to
assess the viability and impact of alternative crops to bananas and sugar, and to assess other
ways to use the land through ventures such as golf courses and plantation tourism sites. The
region could also explore moves into higher value-added agricultural products using branding as
a way to develop competitive advantages.
(ii) Opportunity in diversification
An opportunity to improve the sub-region’s trade performance lies in export

diversification within goods and services. While small size and geography limit the OECS’s
natural resources to expand commodity production, they do not impact the sub-region’s capacity
to develop niche products and services. OECS countries have established competitive advantages
in export products such as electrical equipment, beverages, seafood and spices, using strategies
of speed to market, branding and niche marketing. In agriculture, enterprises that find it difficult
to compete without preferential treatment can move into niche and higher value-added areas.
These include, among others, organic production, oils and snacks for bananas; and rum, ethanol
and feedstuffs for sugar.
The development and diversification of the service sector is another important opportunity to
boost export sales for the OECS. Tourism is important for OECS economies and a main source
of foreign exchange. However, in recent years the sub-region has been losing market share in
total tourist and cruise passenger arrivals to the Caribbean at the expense of more competitive
Hispanic Caribbean destinations. Policy measures should focus on improving the price
competitiveness of the OECS tourism sector, and addressing supply side constraints such as
airlift capacity. There are also opportunities to diversify within tourism by expanding cruise
passenger on-shore services and developing the yachting sub-sector; as well as diversifying
outside tourism into health and education-related services. More research is needed on
identifying those services sectors within transportation and business services (such as high-end
call centers and software development) that may be competitive and merit promotional efforts.
It is critical that the OECS member states improve their competitiveness and boost exports or
face the prospect of weak economic growth. Addressing development challenges such as small
size, high cost structures and preference erosion, and diversifying export portfolios are important
steps toward sustained growth. However, more action is needed to improve the competitiveness
of firms across the region.
B. A Strategy for Competitiveness
As this report highlights, the trade performance and competitiveness of OECS countries has
suffered since the early 1990s. OECS services exports have been characterized by slow growth.
The tourism industry, the sub-region’s most important source of foreign exchange, appears to
lack competitiveness versus some lower-cost destinations in the Caribbean. Merchandise exports
have also performed poorly, in light of eroding preferences in major markets and increased
competition from foreign suppliers. Implementation of a strategy to improve competitiveness
41
through innovation, liberalization, internal reform, and deeper regional integration has the
potential to improve the sub-region’s poor growth performance.
(i) Unilateral action
Improve competitiveness across economic sectors by focusing on innovation and

entrepreneurship.
Innovation and entrepreneurship are important factors for transition from a purely commodity-
based economy to a more competitive knowledge-based economy. For this transition to take
place, countries should facilitate an innovation-friendly environment by focusing on educational
attainment, the business climate and technology infrastructure.54 First, it is important that the
public sector promote an “environment of learning” in subjects such as math and sciences, and
skills such as business management and technology; and the private sector focus on specialized
training for their skilled workforce. Universities and research institutes can also promote ideas by
funding and performing research and development activities. Second, government policies
should strive to promote an innovation-friendly business environment. For example,
improvements in factor and infrastructure costs and the elimination of red tape can free
enterprises to focus resources and time to improving products and services, business strategies
and organizational systems.
Third, reliable and quality access to the infrastructure that enables information and
communication technology as a tool for development is also important. Technology
infrastructure includes assets for telecommunications and internet access (both land and
wireless), and transportation. Technology allows firms to build business strategies based on
customer demands and competitive positioning through consumer feedback and market
intelligence in real time. ICTs also enhance logistics systems to improve speed to market, and
make distance irrelevant, both critical elements of competitiveness for niche merchandise and
services trade.55 There is potential for OECS countries to improve their technological
infrastructure to facilitate innovation and entrepreneurship, and likewise, implement
complementary reforms to their legal and regulatory frameworks.
It is important to note that innovation is not always linked to technological progress and high-
technology sectors, but can also occur through creativity or “organizational innovation”. A
notable example is the St. Lucia Jazz Festival, which was established in 1991 and has flourished
into an internationally recognized event. While the island does not have a strong tradition in jazz,
it has a rich culture of music (in general) that feeds into the general atmosphere of the event. The
island’s comparative advantage in sand, surf and sun also offers beautiful venues for
performance. However, the festival’s success is strongly linked to its effective management, by
the St. Lucia Tourist Board, and three elements of its innovative business strategy. First, the
festival functions on the principle of universal access, hence, performances range from free at
“Jazz on the Square” in Castries to US$ 60 at the luxurious Pigeon Island. Second, interested
foreign sponsors such Black Entertainment Television (BET) have been involved since the
54
Aubert (2004).
55
This section draws from OTF Group (2005).
42
festival’s inception and provide exposure to millions of fans worldwide. Third, the strategy
focuses on the attraction of the biggest names in jazz and other musical genres. Across the OECS
sub-region, more of this “innovation” could boost tourism competitiveness and export growth.
(ii) A multilateral agenda
Seek broad market access for goods and services, and special and differential treatment
through multilateral trade negotiations.
The coordination of foreign economic policies and cooperation in external trade negotiations is
one of the pillars of integration for the Caribbean Community. The OECS member states are
engaged with CARICOM partners in a number of external negotiations including the WTO Doha
Round, CARIFORUM-EU Economic Partnership Agreement, and the FTAA.
The successful negotiation and implementation of the WTO Doha Round agenda is an
opportunity for OECS countries to gain access to new markets for their goods and services. The
OECS’s main offensive interests appear linked to services exports. All WTO member states have
committed, through the General Agreement on Trade in Services or GATS, to the progressive
liberalization of services trade. As a result, services negotiations within the Doha Round began in
2000, based on a request-offer method of negotiation. Thus far, however, only one OECS
country (Grenada) has made a request for liberalization in the negotiations. It is critical that all
OECS countries engage in these negotiations to secure the “best-possible” access for their
exporters.
At the same time, multilateral trade negotiations offer an opportunity to gain some special and
differential treatment (SDT) for the liberalization process. There are four main arguments for
developing countries in the SDT debate: (i) preferential access to developed country markets; (ii)
the right to restrict imports to a greater degree than developed countries; (iii) freedom to
subsidize exports; and (iv) flexibility or postponement in the application of new rules.56 While
the development benefits derived from the first three methods of SDT are inconclusive and
mixed, there may be a valid argument for OECS member states to receive extended time to
implement and adjust to new rules. Furthermore, it is important that along with new and complex
rules, which translate into additional adjustment costs, developing countries (including the
OECS) receive financial resources and capacity building measures to implement any new
multilateral commitments.
Use external agreements to implement pro-competitiveness and pro-growth reforms.
Negotiation of multilateral trade agreements can provide offensive interests such as secure and
improved market access through lower tariffs and less restrictive rules of origin. But, equally
important, is the opportunity for OECS countries to use these agreements to implement internal
reforms to promote trade and economic growth. First, trade agreements can be used to lower
MFN tariffs and converge on the common external tariff, important objectives since high tariffs
and dispersion undermine competitiveness and facilitate trade diversion. Second, inclusion of
56
WTO (2004).
43
trade facilitation measures, such as improvement of customs and port operations, can lower trade
costs. Poor trade facilitation is a significant development constraint for OECS traders and it
deserves more attention. Third, as Chapter II shows, OECS countries are dependent on
international trade taxes as a source of fiscal revenue. The prospect of multilateral liberalization
could provide the impetus to introduce more efficient tax regimes (such as the VAT) and
harmonize with regional partners. Finally, negotiations can also be useful to discuss non-market
access issues such as rules on investment and intellectual property, which can reduce barriers,
establish clear rules and secure a level playing field for all firms.57
(iii) Regional integration
Continue to deepen integration with regional partners as a strategy to enhance efficiency

and improve international competitiveness.
The OECS member states are party to the CARICOM Single Market & Economy (CSME). Their
commitment is based on the principle that regional integration can assist small countries to
enhance efficiency and improve their international competitiveness. As such, OECS countries
should continue to implement CSME provisions with the objective to create one common
economic market across the Caribbean. The provisions governing the free movement of goods
within the region have largely been implemented. External trade policies such as the CET are in
place, yet suffer from a number of tariff suspensions and national derogations. The right of
establishment, and the free movement of services, capital and labor are also important elements
of the CSME. Member states have agreed to curtail introduction of new restrictions in these areas
and have committed to a schedule for their removal. However, much work still remains to be
done to fulfill these obligations in the OECS countries.58
Implementation of the remaining CSME provisions should bring benefits to OECS countries.
Efficiency is gained from regional harmonization of laws and the pooling of resources. For
example, OECS countries would be better served with one harmonized regime (rather than seven
national ones) on intellectual property rights as a way to spur and protect innovation and attract
foreign investment throughout the sub-region. Furthermore, a pooling of resources to establish
common initiatives such as standards bureaus and capital markets facilitates efficiency in
international transactions. OECS countries also face cost disadvantages as a result of their small
scale and lack of resources. Deeper integration should provide reliable access to less costly
inputs and other factors of production and trade (i.e. labor, capital, utilities and transport), and
improve the capacity of OECS firms to compete with foreign competitors.
Deeper integration within the Caribbean Community will face many difficult obstacles along the
way. Implementation of the CSME is a complex process that requires significant financial
resources, political support and institutional capacity. However, the OECS sub-region’s trade
performance and competitiveness has been weak in recent years. A strategy to improve
competitiveness through innovation, liberalization, reform and deeper regional integration has
the potential to facilitate sustainable export-led growth across the Eastern Caribbean.
57
This draws from a paper on Economic Partnership Agreements; see Hinkle et al (2005).
58
IDB (2005).
44
STATISTICAL APPENDIX
Table 1. CARICOM Member States: Composition of Exports, 2002
Table 2. Services Exports by Area, 1993-2003
Table 3. Services Imports by Area, 1993-2003
Table 4. Balance of Services Trade by Area, 1993-2003
Table 5. OECS Tourism Statistics, 1993-2003
Table 6. Caribbean Tourist Arrivals by Destination, 1993-2003
Table 7. Caribbean Cruise Passenger Arrivals by Destination, 1993-2003
Table 8. OECS Tourism Satellite Account, 1993-2003
Table 9. OECS: Foreign Direct Investment Inflows by Sector, 1997-2003
Table 10. Merchandise Exports by Destination, 1993-2003
Table 11. Merchandise Imports by Origin, 1993-2003
Table 12. Intra-regional Merchandise Trade, 1993-2003
Table 13. OECS: Merchandise Trade by Sector, 1993-2003
Table 14. Top 20 Exports to the World, 1993-1996 and 2000-2003
Table 15. Top 20 Exports to CARICOM, 1993-1996 and 2000-2003
Table 16. OECS: International Competitiveness of Exports, 1997-2003
Table 17. OECS Member States: Trade Intensity Index, 1995-2003
45
Table 1. CARICOM Member States: Composition of Exports, 2002
Share of Total Exports (%)

Country Goods Services
Antigua & Barbuda 8.8 91.2
Dominica 36.7 63.3
Grenada 30.6 69.4
Montserrat 16.2 83.8
St. Kitts & Nevis 41.6 58.4
St. Lucia 12.8 87.2
St. Vincent & the Grens. 22.9 77.1
OECS 20.3 79.7
The Bahamas 28.1 71.9

Barbados 19.5 80.5
Belize 62.8 37.2
Guyana 74.2 25.8
Haiti 66.9 33.1
Jamaica 40.5 59.5
Suriname 90.6 9.4
Trinidad & Tobago 87.2 12.8
CARICOM 52.8 47.2

CARICOM (-) T&T 38.3 61.7
Source: IDB INTAL (2005).
46
Table 2. Services Exports by Area, 1993-2003
Share (%) Avg Ann Growth (%)
Country Sector 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 93-03 93-98 98-03 93-03 93-98 98-03
Antigua & Barbuda Transportation 65 66 67 67 73 66 60 66 76 76 80 17.4 17.5 17.0 2.1 0.3 3.9
Travel 277 293 247 258 278 282 290 291 272 274 300 69.8 70.7 68.4 0.8 0.4 1.2
Insurance 2 2 2 4 4 20 30 16 12 9 7 2.4 1.5 3.7 11.0 53.6 -19.8
Other Business 29 29 32 35 47 56 50 36 35 29 29 9.3 9.9 9.4 0.3 14.4 -12.2
Government 4 1 0 0 3 5 9 8 8 4 4 1.0 0.5 1.5 0.4 5.2 -4.1
Total 377 391 348 364 405 429 439 417 403 392 420 100.0 100.0 100.0 1.1 2.6 -0.4
Dominica Transportation 6 5 6 7 7 7 7 7 6 5 5 8.2 9.4 7.2 -1.8 3.1 -6.5
Travel 29 32 42 44 48 47 51 48 46 46 55 58.9 60.2 56.9 6.6 10.1 3.2
Insurance 3 2 2 3 3 3 3 3 2 2 2 3.3 3.7 3.0 -4.2 -3.0 -5.5
Other Business 9 11 12 13 21 28 36 29 19 25 17 26.6 23.6 29.9 6.7 26.0 -9.7
Government 1 0 0 2 4 4 4 2 2 2 1 2.7 2.8 2.8 -1.1 29.8 -24.6
Total 49 52 61 69 83 88 101 90 75 80 80 100.0 100.0 100.0 5.2 12.7 -1.9
Grenada Transportation 4 5 4 5 5 4 6 6 8 8 9 4.8 4.3 5.0 8.4 0.0 17.6
Travel 64 78 76 79 78 83 88 93 83 91 107 69.6 73.8 66.4 5.3 5.3 5.2
Insurance 1 1 1 1 1 1 2 3 3 5 3 1.8 1.1 2.3 10.2 2.3 18.7
Other Business 18 17 17 21 21 28 45 45 34 26 18 21.8 19.5 23.7 -0.1 9.2 -8.6
Government 1 1 1 1 2 4 3 6 4 3 2 2.2 1.7 2.6 3.9 25.3 -13.8
Total 88 102 99 107 106 120 144 153 133 133 139 100.0 100.0 100.0 4.7 6.4 3.0
Montserrat Transportation 2 2 2 3 2 0 1 1 1 1 1 8.4 9.3 5.8 -6.7 .. ..
Travel 18 20 17 8 5 6 8 9 8 9 7 60.2 62.7 54.7 -9.0 -19.7 3.1
Insurance 1 1 1 0 0 0 0 0 0 0 0 2.1 2.2 1.8 -6.5 -31.3 27.2
Other Business 3 4 4 5 7 7 11 5 4 4 3 29.3 25.7 37.7 -2.3 15.2 -17.1
Government .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
Total 24 27 24 16 14 13 20 15 13 14 11 100.0 100.0 100.0 -7.5 -11.5 -3.3
St. Kitts & Nevis Transportation 4 5 5 7 7 8 8 11 11 10 9 8.2 6.6 9.5 8.4 14.9 2.4
Travel 70 77 63 68 72 71 69 58 62 56 74 71.3 77.7 65.3 0.6 0.3 0.8
Insurance 1 1 2 1 2 3 1 3 2 2 2 2.0 1.9 2.4 6.9 28.3 -10.9
Other Business 8 9 10 12 12 16 20 23 20 18 18 15.9 12.3 19.1 8.5 14.2 3.0
Government 1 1 2 1 2 3 3 3 4 4 4 2.7 1.7 3.6 17.4 25.3 10.0
Total 83 92 82 89 95 101 101 99 99 91 107 100.0 100.0 100.0 2.5 3.8 1.3
St. Lucia Transportation 13 14 14 12 14 17 11 12 17 16 17 5.1 5.3 5.0 2.7 5.5 0.0
Travel 178 207 230 237 253 283 263 279 237 215 288 86.8 87.8 86.2 4.9 9.7 0.4
Insurance 3 3 3 4 4 3 3 4 5 4 4 1.3 1.2 1.3 5.6 4.4 6.9
Other Business 10 12 17 13 16 15 28 25 23 22 17 6.4 5.3 7.1 4.7 7.3 2.3
Government 1 1 1 1 1 1 1 1 1 1 1 0.4 0.4 0.5 3.8 5.2 2.4
Total 203 238 265 267 288 320 306 321 283 258 327 100.0 100.0 100.0 4.9 9.5 0.5
St. Vincent & Transportation 4 4 5 5 6 10 10 11 10 10 10 7.4 6.8 8.0 9.6 20.1 0.0
the Grenadines Travel 44 44 53 64 69 73 77 75 80 83 83 64.5 68.9 62.1 6.6 10.7 2.6
Insurance 1 1 1 1 1 1 1 2 2 2 2 1.2 1.1 1.2 5.8 -1.5 13.6
Other Business 11 11 13 26 22 22 36 36 38 40 34 25.1 20.9 27.3 12.1 15.0 9.2
Government 2 3 2 1 1 1 2 2 2 2 2 1.7 2.0 1.4 -0.4 -3.1 2.3
Total 62 63 74 97 99 107 126 126 131 137 131 100.0 100.0 100.0 7.7 11.5 4.0
OECS Transportation 98 101 103 106 114 112 103 114 129 126 131 10.3 10.4 10.1 2.9 2.7 3.2
Travel 680 751 728 758 803 845 846 853 788 774 914 72.9 75.1 70.8 3.0 4.4 1.6
Insurance 12 11 12 14 13 32 41 32 27 24 21 2.0 1.5 2.5 5.6 21.5 -8.2
Other Business 88 93 105 125 148 171 225 198 172 164 135 13.6 12.0 15.0 4.4 14.2 -4.6
Government 9 7 7 7 13 17 22 24 21 16 14 1.3 1.0 1.6 3.9 13.4 -4.8
Total 886 964 954 1,008 1,091 1,177 1,237 1,220 1,138 1,104 1,215 100.0 100.0 100.0 3.2 5.9 0.6
Source: Author using IMF, WTO and ECCB data.
47
Table 3. Services Imports by Area, 1993-2003
Share (%) Avg Ann Growth (%)
Country Sector 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 93-03 93-98 98-03 93-03 93-98 98-03
Antigua & Barbuda Transportation 50 56 56 56 58 60 62 54 55 56 61 35.4 37.4 33.8 1.9 3.7 0.2
Travel 23 24 23 26 27 29 30 31 32 33 35 17.7 16.9 18.3 4.1 4.3 3.9
Insurance 14 11 16 19 16 16 27 16 28 31 31 12.7 10.2 14.4 8.2 2.3 14.5
Other Business 36 37 45 51 59 60 52 44 48 46 51 29.9 31.9 29.1 3.6 11.2 -3.4
Government 5 7 8 5 4 3 6 10 10 8 8 4.2 3.5 4.4 5.8 -5.1 18.0
Total 128 134 148 157 164 169 177 154 172 175 186 100.0 100.0 100.0 3.8 5.7 1.9
Dominica Transportation 17 17 17 20 23 20 21 22 20 18 19 40.0 41.4 38.0 1.0 2.9 -1.0
Travel 5 6 6 7 7 8 9 9 9 9 9 15.8 14.2 17.1 6.1 10.7 1.8
Insurance 3 3 4 4 4 5 4 5 4 5 4 8.8 8.8 8.7 3.2 9.2 -2.6
Other Business 8 7 13 12 14 15 20 12 13 17 8 26.0 25.1 26.9 -0.2 13.0 -11.9
Government 2 5 4 4 5 8 5 5 3 4 4 9.4 10.6 9.3 5.0 28.0 -13.9
Total 36 38 44 47 54 56 59 53 50 54 44 100.0 100.0 100.0 2.1 9.4 -4.7
Grenada Transportation 19 22 21 26 28 32 30 34 33 30 39 43.9 50.2 40.5 7.3 11.0 3.8
Travel 4 4 5 5 5 6 7 8 8 8 8 9.4 9.9 8.9 6.9 6.9 7.0
Insurance 4 4 3 3 5 6 7 8 8 8 9 9.3 9.1 9.4 7.3 7.3 7.3
Other Business 8 9 8 10 15 20 32 33 29 38 22 31.4 23.9 35.5 10.5 19.7 2.1
Government 5 2 2 2 3 6 4 4 4 4 6 6.0 7.0 5.7 0.8 1.7 -0.2
Total 41 41 38 46 56 70 80 87 82 88 84 100.0 100.0 100.0 7.4 11.2 3.6
Montserrat Transportation 6 7 7 7 4 3 4 4 3 4 5 26.8 36.1 18.2 -1.2 -11.4 10.1
Travel 3 3 4 4 1 1 1 2 2 2 2 12.6 17.5 8.0 -2.6 -12.6 8.7
Insurance 1 1 1 1 1 0 1 1 1 1 1 4.3 5.8 2.8 -0.9 -8.3 7.2
Other Business 2 2 2 2 4 4 7 5 5 4 5 21.5 17.1 24.1 11.2 14.7 7.8
Government 1 1 1 4 3 12 9 8 13 12 5 34.8 23.6 46.9 25.2 87.1 -16.2
Total 11 14 15 17 13 21 22 19 24 23 18 100.0 100.0 100.0 4.7 12.8 -2.7
St. Kitts & Nevis Transportation 17 17 21 23 26 27 29 32 31 32 33 39.1 38.8 39.8 6.9 9.5 4.4
Travel 5 6 5 5 6 6 7 9 8 8 8 10.0 10.1 9.9 4.3 3.2 5.3
Insurance 4 6 6 6 6 6 7 9 8 10 9 10.3 9.9 10.5 8.8 8.3 9.2
Other Business 18 14 20 23 24 19 39 23 23 25 25 34.8 35.4 33.8 3.2 1.0 5.4
Government 2 2 4 3 4 4 4 4 4 5 6 5.8 5.8 6.0 11.5 17.7 5.6
Total 46 45 55 61 65 62 85 76 75 80 81 100.0 100.0 100.0 5.7 6.1 5.4
St. Lucia Transportation 43 41 42 42 44 42 45 46 42 44 54 36.6 36.7 35.6 2.3 -0.6 5.2
Travel 20 23 25 29 29 31 33 33 32 33 35 24.3 22.6 25.8 6.0 9.7 2.3
Insurance 7 7 7 7 8 8 8 9 8 8 11 6.6 6.4 6.7 4.8 2.9 6.6
Other Business 15 27 43 35 32 40 42 29 26 34 31 26.7 27.7 26.4 7.3 20.9 -4.8
Government 5 6 6 10 8 11 8 7 5 6 5 5.8 6.6 5.5 -0.7 18.0 -16.5
Total 90 104 124 122 122 132 136 124 113 125 136 100.0 100.0 100.0 4.2 8.0 0.5
St. Vincent & Transportation 19 18 20 20 23 27 29 25 26 26 29 38.5 34.3 41.5 4.6 8.0 1.3
the Grenadines Travel 5 6 7 8 7 8 9 9 10 10 11 13.2 10.8 14.7 8.6 9.3 8.0
Insurance 4 3 4 4 4 5 5 5 5 6 6 7.5 6.5 8.2 5.2 4.7 5.6
Other Business 16 22 23 23 38 34 19 17 15 15 16 35.2 42.5 29.9 -0.3 16.3 -14.6
Government 1 5 2 3 4 5 4 4 3 3 3 5.6 5.8 5.6 6.4 28.3 -11.7
Total 45 55 55 58 76 79 66 60 60 60 65 100.0 100.0 100.0 3.8 12.0 -3.9
OECS Transportation 171 177 183 194 205 212 219 217 210 212 240 37.6 38.6 36.6 3.4 4.3 2.6
Travel 65 71 74 83 84 89 97 101 100 103 108 16.4 15.8 16.7 5.2 6.6 3.9
Insurance 37 35 41 46 46 46 59 51 62 68 72 9.4 8.5 10.0 6.8 4.5 9.2
Other Business 103 120 154 155 186 192 210 164 161 180 157 30.0 30.8 29.7 4.3 13.2 -3.9
Government 21 29 26 32 31 51 40 41 43 42 36 6.6 6.4 7.1 5.3 19.0 -6.8
Total 397 431 479 510 551 589 625 573 576 604 613 100.0 100.0 100.0 4.4 8.2 0.8
Source: Author using IMF, WTO and ECCB data.
48
Table 4. Balance of Services Trade by Area, 1993-2003
Country Sector 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Antigua & Barbuda Transportation 15 10 11 11 15 6 -2 12 21 20 19
Travel 254 269 224 232 251 253 260 260 240 241 265
Insurance -12 -8 -14 -16 -13 4 3 0 -16 -22 -25
Other Business -7 -9 -13 -16 -11 -4 -2 -8 -13 -17 -21
Government -1 -6 -7 -4 -1 1 3 -2 -2 -4 -4
Total 248 256 201 207 241 259 262 263 231 217 234
Dominica Transportation -11 -12 -11 -13 -16 -13 -14 -15 -14 -13 -14
Travel 24 26 36 37 41 39 42 39 37 37 46
Insurance 0 -2 -2 -2 -2 -2 -2 -1 -2 -3 -2
Other Business 1 4 -1 2 7 14 17 16 5 8 9
Government -1 -4 -4 -2 -1 -4 -1 -3 -2 -2 -3
Total 13 14 18 22 29 33 42 37 25 26 37
Grenada Transportation -15 -17 -17 -21 -23 -28 -24 -28 -25 -22 -30
Travel 60 74 71 74 73 77 81 85 75 83 99
Insurance -3 -3 -2 -3 -5 -5 -5 -5 -5 -3 -5
Other Business 10 8 9 11 6 8 13 12 4 -12 -5
Government -4 -1 -1 -1 -1 -2 -1 2 0 -1 -4
Total 46 60 61 61 50 50 64 65 51 45 55
Montserrat Transportation -4 -5 -5 -4 -2 -3 -3 -3 -2 -3 -4
Travel 15 17 13 4 4 5 7 7 6 7 5
Insurance 0 0 0 0 -1 0 0 0 0 0 0
Other Business 2 2 2 3 3 3 3 0 -1 -1 -3
Government .. .. .. .. .. .. .. .. .. .. ..
Total 13 13 9 -1 1 -8 -2 -4 -11 -9 -7
St. Kitts & Nevis Transportation -13 -12 -16 -16 -19 -19 -21 -21 -20 -22 -24
Travel 65 71 58 63 66 65 62 49 54 48 66
Insurance -3 -4 -4 -5 -4 -2 -5 -5 -6 -7 -7
Other Business -10 -6 -9 -12 -12 -4 -19 -1 -3 -8 -7
Government -1 -2 -2 -2 -2 -2 -1 0 0 -1 -1
Total 37 48 27 27 30 39 16 23 24 11 27
St. Lucia Transportation -30 -27 -28 -30 -30 -25 -34 -34 -25 -28 -37
Travel 158 184 205 208 224 252 230 246 205 182 253
Insurance -4 -4 -4 -4 -5 -5 -5 -5 -3 -4 -6
Other Business -5 -15 -26 -21 -16 -25 -15 -4 -3 -12 -15
Government -4 -5 -5 -9 -7 -10 -7 -6 -4 -4 -3
Total 113 134 141 144 167 187 170 197 170 134 192
St. Vincent & Transportation -15 -14 -15 -15 -17 -17 -19 -14 -16 -16 -19
the Grenadines Travel 39 38 46 56 62 66 68 66 70 73 72
Insurance -3 -2 -3 -3 -3 -4 -4 -3 -3 -4 -5
Other Business -5 -11 -10 3 -15 -12 17 19 23 25 19
Government 0 -3 0 -2 -3 -4 -2 -2 -2 -1 -1
Total 18 9 19 38 23 28 60 66 72 76 66
OECS Transportation -73 -76 -80 -88 -91 -100 -116 -103 -81 -86 -109
Travel 615 680 654 675 719 756 749 752 688 671 806
Insurance -25 -24 -30 -32 -32 -15 -17 -19 -35 -43 -51
Other Business -15 -27 -48 -30 -38 -20 14 35 11 -16 -22
Government -12 -22 -19 -25 -18 -33 -18 -18 -22 -26 -22
Total 488 533 476 498 540 588 611 647 562 500 602
49
Table 5. OECS Tourism Statistics, 1993-2003
Shares (%) Avg Annual Growth (%)

Arrivals ('000) 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 93-03 93-98 98-03 93-03 93-98 98-03
Tourist Arrivals 751 817 778 786 824 836 861 861 813 837 918 40 43 38 2.0 2.2 1.9
United States 244 264 253 236 241 254 254 251 245 259 267 30 31 30 0.9 0.9 0.9
Europe 224 255 234 244 260 253 276 285 244 236 270 31 31 31 1.9 2.4 1.3
Caribbean 171 182 186 196 201 211 218 214 221 252 283 26 24 27 5.2 4.3 6.1
Other Countries 112 116 105 111 122 118 113 111 104 90 99 13 14 12 -1.3 1.0 -3.5
Cruise Ship Passengers 833 917 988 1,060 1,200 1,408 1,312 1,544 1,582 1,206 1,314 60 57 62 4.7 11.1 -1.4
Total Visitors 1,584 1,734 1,766 1,847 2,024 2,244 2,173 2,405 2,395 2,043 2,232 100 100 100 3.5 7.2 -0.1
Average (%) Avg Annual Growth (%)

Memorandum: 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 93-03 93-98 98-03 93-03 93-98 98-03
Cruise Ship Calls (#) 1,682 1,636 1,549 1,504 1,405 1,521 1,529 1,710 1,526 1,436 1,558 1,551 1,550 1,547 -0.8 -2.0 0.5
Visitor Exp. (US$ mn) 706 752 732 763 901 909 942 964 873 860 985 853 794 922 3.4 5.2 1.6
Source: Caribbean Tourism Organization.
50
Table 6. Caribbean Tourist Arrivals by Destination, 1993-2003
Avg Annual Growth (%)

Arrivals ('000) 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 93-03 93-98 98-03
Commonwealth 5,490 5,745 5,735 5,853 5,956 6,031 6,166 6,332 6,129 6,069 6,292 1.4 1.9 0.9
OECS 751 817 778 786 824 836 861 861 813 837 918 2.0 2.2 1.9
Other CARICOM 3,746 3,847 3,872 3,937 4,038 4,043 4,155 4,308 4,195 4,166 4,335 1.5 1.5 1.4
Other Caribbean 994 1,081 1,085 1,131 1,093 1,153 1,150 1,163 1,121 1,066 1,039 0.4 3.0 -2.1
Hispanic Caribbean 4,368 4,068 4,415 4,967 5,662 5,972 6,649 7,232 6,972 6,650 7,555 5.6 6.5 4.8
Dutch Caribbean 1,377 1,475 1,401 1,303 1,372 1,385 1,406 1,414 1,368 1,314 1,376 0.0 0.1 -0.1
French Caribbean 819 975 1,097 1,102 1,173 1,242 1,275 1,333 1,234 1,212 1,253 4.3 8.7 0.2
US Territories 3,466 3,554 3,594 3,464 3,757 3,633 3,622 4,012 3,832 3,754 3,885 1.1 0.9 1.3
Caribbean Total 15,520 15,816 16,242 16,689 17,920 18,264 19,119 20,323 19,534 19,000 20,361 2.8 3.3 2.2
Shares (%)
Shares (%) 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 93-03 93-98 98-03
Commonwealth 35.4 36.3 35.3 35.1 33.2 33.0 32.2 31.2 31.4 31.9 30.9 33.1 34.7 31.7
OECS 4.8 5.2 4.8 4.7 4.6 4.6 4.5 4.2 4.2 4.4 4.5 4.6 4.8 4.4
Other CARICOM 24.1 24.3 23.8 23.6 22.5 22.1 21.7 21.2 21.5 21.9 21.3 22.5 23.4 21.6
Other Caribbean 6.4 6.8 6.7 6.8 6.1 6.3 6.0 5.7 5.7 5.6 5.1 6.1 6.5 5.7
Hispanic Caribbean 28.1 25.7 27.2 29.8 31.6 32.7 34.8 35.6 35.7 35.0 37.1 32.5 29.3 35.2
Dutch Caribbean 8.9 9.3 8.6 7.8 7.7 7.6 7.4 7.0 7.0 6.9 6.8 7.6 8.3 7.1
French Caribbean 5.3 6.2 6.8 6.6 6.5 6.8 6.7 6.6 6.3 6.4 6.2 6.4 6.4 6.5
US Territories 22.3 22.5 22.1 20.8 21.0 19.9 18.9 19.7 19.6 19.8 19.1 20.4 21.4 19.5
Caribbean Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Note: Regional groupings include OECS, Other CARICOM (non-OECS), Other Commonwealth (Anguilla, BVI, Bermuda, Cayman Islands and Turks & Caicos Islands),
Hispanic Caribbean (Cancun and Cozumel-Mexico, Cuba and the Dominican Republic), Dutch Caribbean (Aruba, Bonaire, Curacao, Saba, St. Eustatius, St. Maarten),
French Caribbean (Guadeloupe and Martinique), and US Territories (Puerto Rico and USVI).
51
Table 7. Caribbean Cruise Passenger Arrivals by Destination, 1993-2003

Arrivals ('000) 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 93-03 93-98 98-03
Commonwealth 4,823 4,672 4,652 5,104 5,600 5,793 6,243 7,391 7,587 8,136 8,956 6.4 3.7 9.1
OECS 833 917 988 1,060 1,200 1,408 1,312 1,544 1,582 1,206 1,314 4.7 11.1 -1.4
Other CARICOM 3,144 2,918 2,691 2,902 3,246 3,210 3,519 4,420 4,407 4,925 5,293 5.3 0.4 10.5
Other Caribbean 846 837 973 1,142 1,153 1,175 1,412 1,427 1,597 2,005 2,349 10.7 6.8 14.9
Hispanic Caribbean 772 976 939 1,098 1,359 1,643 1,587 1,688 1,804 2,475 3,107 14.9 16.3 13.6
Dutch Caribbean 1,112 1,148 1,041 1,162 1,420 1,391 1,140 1,710 1,696 1,998 2,047 6.3 4.6 8.0
French Caribbean 691 734 847 1,021 857 749 633 679 564 406 464 -3.9 1.6 -9.1
US Territories 2,228 2,209 2,172 2,341 2,846 2,859 2,551 3,070 3,242 2,943 3,010 3.1 5.1 1.0
Caribbean Total 9,626 9,738 9,651 10,726 12,082 12,434 12,155 14,538 14,892 15,957 17,584 6.2 5.3 7.2
Shares (%)
Shares (%) 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 93-03 93-98 98-03
Commonwealth 50.1 48.0 48.2 47.6 46.3 46.6 51.4 50.8 50.9 51.0 50.9 49.5 47.7 50.4
OECS 8.7 9.4 10.2 9.9 9.9 11.3 10.8 10.6 10.6 7.6 7.5 9.6 10.0 9.6
Other CARICOM 32.7 30.0 27.9 27.1 26.9 25.8 29.0 30.4 29.6 30.9 30.1 29.2 28.2 29.4
Other Caribbean 8.8 8.6 10.1 10.6 9.5 9.4 11.6 9.8 10.7 12.6 13.4 10.7 9.5 11.4
Hispanic Caribbean 8.0 10.0 9.7 10.2 11.2 13.2 13.1 11.6 12.1 15.5 17.7 12.5 10.6 14.1
Dutch Caribbean 11.5 11.8 10.8 10.8 11.8 11.2 9.4 11.8 11.4 12.5 11.6 11.4 11.3 11.4
French Caribbean 7.2 7.5 8.8 9.5 7.1 6.0 5.2 4.7 3.8 2.5 2.6 5.5 7.6 4.0
US Territories 23.1 22.7 22.5 21.8 23.6 23.0 21.0 21.1 21.8 18.4 17.1 21.1 22.8 20.2
Caribbean Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Note: Regional groupings include OECS, Other CARICOM (non-OECS), Other Commonwealth (Anguilla, BVI, Bermuda, Cayman Islands and Turks & Caicos Islands),
Hispanic Caribbean (Cancun and Cozumel-Mexico, Cuba and the Dominican Republic), Dutch Caribbean (Aruba, Bonaire, Curacao, Saba, St. Eustatius, St. Maarten),
French Caribbean (Guadeloupe and Martinique), and US Territories (Puerto Rico and USVI).
52
Table 8. OECS Tourism Satellite Account, 1993-2003

US$ millions 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 93-03 93-00 00-03
Travel & Tourism Consumption 965 984 986 1,041 1,101 1,142 1,216 1,184 1,109 1,111 1,128 1.6 3.0 -1.6
Personal Travel & Tourism 124 138 140 161 170 181 195 195 189 195 202 5.0 6.7 1.1
Business Travel 42 44 50 52 57 64 68 73 69 71 74 5.8 8.2 0.5
Government Expenditures 23 22 22 23 24 26 28 29 32 34 34 4.0 3.3 5.5
Visitor Exports 776 780 774 805 851 870 926 887 820 812 819 0.5 1.9 -2.6
Collective Gov't Expenditures 45 51 50 55 56 60 63 66 72 79 77 5.6 5.7 5.4
Capital Investment 245 263 322 279 313 311 337 363 371 359 391 4.8 5.8 2.6
Exports (Non-Visitor) 11 8 10 8 7 9 10 11 9 12 10 -1.0 0.0 -3.4
Travel & Tourism Demand 1,266 1,306 1,368 1,382 1,478 1,522 1,626 1,623 1,561 1,561 1,607 2.4 3.6 -0.3
Travel & Tourism GDP 1,086 1,110 1,115 1,110 1,218 1,243 1,311 1,283 1,244 1,237 1,257 1.5 2.4 -0.7
Note: GDP is for total economy (includes direct and indirect value-added).
Source: WTTC (2004).
53
Table 9. OECS: Foreign Direct Investment Inflows by Sector, 1997-2003
Average
US$ millions 1997 1998 1999 2000 2001 2002 2003 1997-2003
Tourism 107.9 177.7 225.3 156.2 124.5 143.8 124.2 151.4
Manufacturing 2.7 0.4 1.1 2.9 5.0 0.6 2.1 2.1
Transportation 0.0 0.0 1.1 0.0 0.0 0.0 0.0 0.2
Construction 5.2 2.2 0.0 0.0 0.0 0.0 22.0 4.2
Sporting 3.7 14.8 3.1 0.0 0.0 0.0 0.0 3.1
Medical 0.0 0.0 0.0 0.0 0.6 0.9 0.0 0.2
Financial 0.0 0.0 0.0 0.0 0.6 3.1 0.0 0.5
Banking and Insurance 2.6 0.0 2.0 0.7 0.0 0.0 0.0 0.8
Commercial 3.8 0.2 0.0 11.8 2.2 0.0 0.0 2.6
Petroleum 2.7 1.7 0.7 0.0 0.0 0.0 0.0 0.7
Education 0.0 7.4 5.2 0.0 0.0 0.0 5.8 2.6
Agriculture 0.0 0.0 5.6 1.5 0.7 1.7 1.1 1.5
Other 50.9 33.1 33.1 79.1 130.9 103.7 241.8 96.1
Total FDI 179.5 237.4 277.3 252.4 264.6 253.8 397.0 266.0
Average
Share (%) 1997 1998 1999 2000 2001 2002 2003 1997-2003
Tourism 60.1 74.8 81.2 61.9 47.0 56.7 31.3 56.9
Manufacturing 1.5 0.2 0.4 1.2 1.9 0.2 0.5 0.8
Transportation 0.0 0.0 0.4 0.0 0.0 0.0 0.0 0.1
Construction 2.9 0.9 0.0 0.0 0.0 0.0 5.5 1.6
Sporting 2.1 6.2 1.1 0.0 0.0 0.0 0.0 1.2
Medical 0.0 0.0 0.0 0.0 0.2 0.3 0.0 0.1
Financial 0.0 0.0 0.0 0.0 0.2 1.2 0.0 0.2
Banking and Insurance 1.4 0.0 0.7 0.3 0.0 0.0 0.0 0.3
Commercial 2.1 0.1 0.0 4.7 0.8 0.0 0.0 1.0
Petroleum 1.5 0.7 0.3 0.0 0.0 0.0 0.0 0.3
Education 0.0 3.1 1.9 0.0 0.0 0.0 1.5 1.0
Agriculture 0.0 0.0 2.0 0.6 0.3 0.7 0.3 0.6
Other 28.4 13.9 11.9 31.4 49.5 40.9 60.9 36.1
Total FDI 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Memorandum: FDI Inflows to Tourism Sectors

1997 1998 1999 2000 2001 2002 2003
Anguilla 11.2 18.6 31.3 35.3 19.0 16.0 7.1
Antigua & Barbuda 2.0 13.9 21.5 7.3 19.6 10.3 4.1
Dominica 3.1 0.7 7.8 3.6 5.9 4.9 3.6
Grenada 0.3 7.4 7.4 14.7 16.0 27.0 38.8
St. Kitts & Nevis 4.0 16.5 45.7 51.8 62.7 67.9 40.5
St. Lucia 9.3 42.6 69.0 26.7 0.0 14.4 22.7
St. Vincent & Grens. 78.0 78.0 42.6 16.9 1.2 3.3 7.3
OECS 107.9 177.7 225.3 156.2 124.5 143.8 124.2
Source: Eastern Caribbean Central Bank (ECCB).
54
Table 10. Merchandise Exports by Destination, 1993-2003
Shares (%) AAGR (%)
Country Exports (US$ mn) 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 93-03 93-98 98-03 93-03 93-98 98-03
Antigua World 62 44 53 38 38 36 38 43 40 46 47 100.0 100.0 100.0 -2.7 -10.3 5.5
& Barbuda US and Canada 15 5 3 10 6 4 2 2 4 4 13 14.3 16.1 11.9 -1.4 -24.5 28.7
CARICOM (non-OECS) 1 1 1 2 2 2 2 2 2 2 3 3.8 3.0 4.7 14.0 17.5 10.6
OECS 1 1 1 1 2 1 3 2 2 3 3 4.1 2.4 5.7 19.5 12.8 26.6
Latin America 4 11 19 4 5 5 4 5 4 5 6 14.8 17.9 11.3 3.2 4.1 2.2
EU 4 12 9 12 5 11 6 7 6 6 5 17.0 19.8 16.0 2.0 24.0 -16.1
Rest of World 37 13 20 9 18 13 22 25 21 26 18 46.1 40.9 50.5 -7.3 -18.5 5.6
Intra-OECS 1 1 1 1 2 1 3 2 2 3 3 4.1 2.4 5.7 19.5 12.8 26.6

Intra-CARICOM 1 2 2 3 4 3 5 4 4 5 6 7.8 5.4 10.4 16.6 15.6 17.6
Extra-regional 61 42 51 35 34 33 34 39 35 41 41 92.2 94.6 89.6 -3.8 -11.3 4.3
Dominica World 49 46 47 52 53 62 56 56 45 45 41 100.0 100.0 100.0 -1.9 4.8 -8.1

US and Canada 3 4 4 4 4 3 4 5 3 5 3 7.6 6.9 7.8 0.1 1.8 -1.6
CARICOM (non-OECS) 9 10 12 17 20 27 23 22 19 17 18 34.9 30.3 41.2 7.9 25.1 -7.0
OECS 6 6 7 7 7 9 8 9 9 8 8 15.5 14.3 16.7 2.5 8.2 -3.0
Latin America 0 0 0 0 0 1 0 0 0 0 0 0.5 0.6 0.8 3.6 104.7 -47.6
EU 26 22 18 23 21 19 19 18 13 12 10 36.1 41.4 29.7 -9.2 -6.1 -12.2
Rest of World 5 5 5 1 1 3 1 2 2 3 1 5.3 6.5 3.8 -12.8 -12.7 -13.0
Intra-OECS 6 6 7 7 7 9 8 9 9 8 8 15.5 14.3 16.7 2.5 8.2 -3.0

Intra-CARICOM 15 16 20 24 27 36 32 32 27 25 26 50.5 44.6 57.9 5.9 19.2 -5.9
Extra-regional 34 30 27 28 26 26 25 25 18 21 14 49.5 55.4 42.1 -8.4 -5.2 -11.5
Grenada World 27 27 23 21 28 43 40 81 63 44 51 100.0 100.0 100.0 6.7 10.2 3.3

US and Canada 11 9 8 5 7 16 9 38 24 14 18 35.4 32.8 37.0 5.2 8.5 2.1
CARICOM (non-OECS) 4 4 3 2 5 5 5 5 8 7 6 11.7 13.4 10.9 3.8 6.0 1.6
OECS 4 4 4 5 6 6 7 9 8 7 8 15.0 16.8 13.9 6.4 8.1 4.6
Latin America 1 3 1 2 1 2 4 3 2 1 2 4.3 5.0 3.9 10.4 23.0 -0.9
EU 7 7 7 8 9 14 15 24 21 14 17 32.0 30.4 32.8 9.6 15.4 4.1
Rest of World 0 0 1 0 0 0 0 2 0 0 1 1.6 1.5 1.5 9.7 -11.7 36.3
Intra-OECS 4 4 4 5 6 6 7 9 8 7 8 15.0 16.8 13.9 6.4 8.1 4.6

Intra-CARICOM 8 7 7 6 10 12 11 14 16 14 14 26.7 30.2 24.8 5.2 7.1 3.3
Extra-regional 19 20 16 15 18 32 29 67 47 30 37 73.3 69.8 75.2 7.3 11.5 3.2
St Kitts World 29 25 20 25 47 46 30 36 33 29 52 100.0 100.0 100.0 5.9 9.5 2.4

& Nevis US and Canada 10 8 8 5 27 28 21 23 23 27 40 59.7 45.7 72.0 14.4 22.1 7.2
CARICOM (non-OECS) 2 1 0 0 0 0 0 1 0 0 0 1.6 2.2 0.9 -22.5 -36.3 -5.8
OECS 3 3 2 1 1 1 1 2 1 1 1 4.3 5.5 2.8 -10.7 -24.6 5.7
Latin America 0 0 0 0 0 0 0 0 0 0 0 0.1 0.1 0.1 .. .. ..
EU 13 12 8 8 14 12 7 8 8 1 9 26.7 34.5 19.9 -3.1 -1.6 -4.6
Rest of World 1 1 1 10 4 5 1 2 1 1 1 7.6 12.0 4.4 -2.8 27.4 -25.9
Intra-OECS 3 3 2 1 1 1 1 2 1 1 1 4.3 5.5 2.8 -10.7 -24.6 5.7

Intra-CARICOM 4 4 2 1 2 1 1 3 1 1 1 5.9 7.7 3.6 -13.7 -28.2 3.7
Extra-regional 25 21 18 23 45 45 29 33 32 28 51 94.1 92.3 96.4 7.5 12.8 2.4
55
Table 10. Merchandise Exports by Destination, 1993-2003 (Continued)
Shares (%) AAGR (%)
St Lucia World 133 106 124 82 66 64 59 47 50 81 85 100.0 100.0 100.0 -4.4 -13.7 5.8
US and Canada 37 35 40 13 15 10 11 11 10 21 21 24.7 25.9 21.3 -5.6 -23.3 16.0
CARICOM (non-OECS) 8 6 8 5 6 7 7 7 9 21 23 12.1 7.1 19.3 11.6 -2.0 27.2
OECS 21 9 11 6 4 5 6 6 6 11 14 10.9 9.8 12.2 -4.0 -23.2 20.0
Latin America 1 0 0 0 0 0 0 0 1 0 1 0.4 0.3 0.6 1.6 -10.2 15.1
EU 66 53 61 56 38 41 34 23 23 27 24 49.6 54.7 44.4 -9.5 -9.2 -9.8
Rest of World 2 2 4 2 2 1 1 1 1 2 2 2.3 2.1 2.4 0.7 -16.6 21.5
Intra-OECS 21 9 11 6 4 5 6 6 6 11 14 10.9 9.8 12.2 -4.0 -23.2 20.0

Intra-CARICOM 28 16 19 11 10 13 13 12 15 32 37 23.0 16.9 31.5 2.7 -15.1 24.3
Extra-regional 105 91 105 71 56 51 47 35 35 49 48 77.0 83.1 68.5 -7.6 -13.3 -1.5
St Vincent World 61 55 63 54 50 53 54 58 51 42 45 100.0 100.0 100.0 -3.0 -3.0 -2.9

& Grens. US and Canada 6 6 7 5 5 4 3 2 2 4 10 9.1 10.0 8.0 4.8 -6.7 17.7
CARICOM (non-OECS) 10 12 11 11 10 11 13 11 15 11 11 21.4 19.3 23.7 1.0 1.8 0.1
OECS 18 19 18 15 18 14 15 14 11 10 11 28.0 30.5 25.0 -4.5 -4.6 -4.3
Latin America 0 0 0 0 0 0 0 0 0 0 0 0.2 0.2 0.2 0.0 25.6 -20.3
EU 26 17 25 22 16 22 21 27 21 16 12 38.5 38.3 39.5 -7.8 -3.3 -12.0
Rest of World 1 1 2 1 1 1 2 4 1 2 2 2.7 1.7 3.5 5.4 -4.0 15.6
Intra-OECS 18 19 18 15 18 14 15 14 11 10 11 28.0 30.5 25.0 -4.5 -4.6 -4.3

Intra-CARICOM 28 30 29 27 28 25 29 25 26 21 22 49.5 49.8 48.7 -2.2 -2.1 -2.3
Extra-regional 34 24 34 27 22 28 25 33 25 21 23 50.5 50.2 51.3 -3.6 -3.8 -3.4
Shares (%) AAGR (%)

OECS World 362 303 330 272 281 304 278 322 282 287 320 100.0 100.0 100.0 -1.2 -3.4 1.1
US and Canada 82 67 70 42 64 66 50 81 67 74 105 23.0 21.1 24.6 2.4 -4.4 9.8
CARICOM (non-OECS) 33 34 36 37 43 51 50 48 53 57 61 15.1 12.7 17.9 6.5 9.5 3.6
OECS 52 42 44 35 38 37 40 42 36 39 45 13.5 13.4 13.3 -1.5 -6.8 4.0
Latin America 6 14 20 6 7 9 8 8 6 7 8 3.0 3.3 2.6 4.1 10.0 -1.4
EU 141 123 127 129 103 118 103 106 92 75 77 35.8 40.1 31.9 -5.9 -3.5 -8.3
Rest of World 47 23 33 23 26 23 27 36 27 34 25 9.7 9.4 9.6 -6.3 -13.7 1.8
Intra-OECS 52 42 44 35 38 37 40 42 36 39 45 13.5 13.4 13.3 -1.5 -6.8 4.0

Intra-CARICOM 85 76 80 73 81 88 90 90 89 97 106 28.6 26.1 31.3 2.3 0.8 3.8
Extra-regional 277 228 250 199 200 216 188 232 192 190 214 71.4 73.9 68.7 -2.5 -4.9 -0.1
Source: Author using UN-COMTRADE (with some estimates using IMF, USITC and WTO data).
56
Table 11. Merchandise Imports by Origin, 1993-2003
Shares (%) AAGR (%)
Country Imports (US$ mn) 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 93-03 93-98 98-03 93-03 93-98 98-03
Antigua World 168 363 298 318 296 416 818 917 584 693 530 100.0 100.0 100.0 12.2 19.9 4.9
& Barbuda US and Canada 88 70 112 112 101 111 113 158 113 96 154 22.7 31.9 18.8 5.7 4.8 6.7
CARICOM (non-OECS) 9 35 37 34 37 39 48 32 35 41 47 7.3 10.3 6.1 17.6 33.2 3.7
OECS 6 6 7 7 9 9 11 12 11 12 14 1.9 2.4 1.8 8.8 7.4 10.3
Latin America 3 3 4 4 3 3 3 34 36 35 33 3.0 1.1 3.7 26.8 2.0 57.5
EU 55 238 120 113 128 212 603 619 293 376 157 54.0 46.6 57.1 10.9 30.8 -5.9
Rest of World 6 11 19 48 18 42 40 62 95 134 126 11.1 7.7 12.6 35.6 47.9 24.3
Intra-OECS 6 6 7 7 9 9 11 12 11 12 14 1.9 2.4 1.8 8.8 7.4 10.3

Intra-CARICOM 15 41 43 42 46 48 59 44 47 53 61 9.2 12.7 7.8 14.8 25.3 5.1
Extra-regional 153 322 255 276 250 369 759 873 537 641 469 90.8 87.3 92.2 11.9 19.3 4.9
Dominica World 94 96 117 130 133 132 133 148 131 116 127 100.0 100.0 100.0 3.1 7.1 -0.8
US and Canada 37 36 41 56 59 59 58 62 51 45 51 41.0 41.0 41.6 3.3 9.7 -2.8
CARICOM (non-OECS) 16 18 20 24 27 26 26 32 30 28 32 20.6 18.7 22.2 7.2 10.1 4.4
OECS 8 10 11 8 8 6 7 7 6 7 6 6.3 7.3 5.1 -2.4 -4.7 -0.1
Latin America 3 3 4 5 6 7 7 10 9 8 9 5.2 4.0 6.3 11.2 18.5 4.2
EU 18 17 29 25 22 21 19 21 20 16 17 16.7 18.9 14.6 -0.8 2.3 -3.7
Rest of World 11 11 12 12 12 13 15 16 14 11 11 10.2 10.1 10.2 -0.1 3.1 -3.2
Intra-OECS 8 10 11 8 8 6 7 7 6 7 6 6.3 7.3 5.1 -2.4 -4.7 -0.1

Intra-CARICOM 24 28 31 32 34 32 33 40 36 35 38 26.9 25.9 27.3 4.8 6.1 3.6
Extra-regional 70 68 86 98 99 100 100 108 95 80 89 73.1 74.1 72.7 2.4 7.5 -2.4
Grenada World 125 119 129 151 168 200 202 239 212 199 253 100.0 100.0 100.0 7.3 9.8 4.8
US and Canada 48 44 58 69 72 86 91 114 105 91 113 44.7 42.4 46.0 8.9 12.5 5.5
CARICOM (non-OECS) 36 31 32 38 43 53 52 54 50 51 56 24.8 26.1 24.2 4.3 7.7 1.1
OECS 4 4 3 2 3 3 3 3 3 3 4 1.8 2.2 1.4 -2.0 -8.4 4.8
Latin America 5 6 5 5 8 8 9 10 9 10 13 4.5 4.2 4.6 10.2 9.8 10.6
EU 20 22 20 23 23 29 25 34 25 26 42 14.4 15.3 13.9 7.8 7.5 8.1
Rest of World 11 13 11 14 18 21 22 23 19 18 26 9.8 9.9 9.9 8.5 13.4 3.8
Intra-OECS 4 4 3 2 3 3 3 3 3 3 4 1.8 2.2 1.4 -2.0 -8.4 4.8

Intra-CARICOM 41 34 35 40 47 56 55 58 53 53 59 26.6 28.3 25.6 3.8 6.3 1.3
Extra-regional 84 85 94 111 121 144 147 181 159 145 194 73.4 71.7 74.4 8.7 11.4 6.1
St Kitts World 118 127 132 146 147 177 153 196 189 201 205 100.0 100.0 100.0 5.7 8.4 3.0
& Nevis US and Canada 66 76 76 84 86 72 98 126 117 139 128 59.6 54.3 60.7 6.9 1.6 12.3
CARICOM (non-OECS) 16 16 19 21 23 30 23 32 29 25 33 15.0 14.8 15.4 7.6 13.2 2.2
OECS 4 4 4 5 5 4 5 5 4 5 5 2.7 3.1 2.4 0.4 -2.7 3.6
Latin America 3 2 2 3 3 1 3 4 4 3 3 1.7 1.5 1.6 .. .. ..
EU 17 14 17 17 18 49 13 17 24 17 24 12.7 15.7 12.7 3.2 23.1 -13.5
Rest of World 12 13 14 16 13 22 11 12 11 13 12 8.3 10.7 7.2 0.4 13.5 -11.3
Intra-OECS 4 4 4 5 5 4 5 5 4 5 5 2.7 3.1 2.4 0.4 -2.7 3.6

Intra-CARICOM 20 21 23 26 28 34 28 37 34 30 38 17.7 17.9 17.8 6.3 10.4 2.4
Extra-regional 97 106 110 120 120 143 125 159 155 171 167 82.3 82.1 82.2 5.5 8.0 3.1
57
Table 11. Merchandise Imports by Origin, 1993-2003 (Continued)
Shares (%) AAGR (%)
St Lucia World 299 302 306 314 332 335 355 355 276 315 393 100.0 100.0 100.0 2.8 2.3 3.2
US and Canada 131 131 128 134 152 147 163 160 124 144 192 44.8 43.6 45.9 3.9 2.3 5.5
CARICOM (non-OECS) 46 51 55 57 56 60 67 68 59 62 67 18.1 17.2 18.9 3.7 5.2 2.2
OECS 12 13 13 11 15 12 9 9 8 7 12 3.4 4.1 2.8 -0.4 -0.4 -0.5
Latin America 12 12 13 14 14 14 14 16 12 16 18 4.4 4.3 4.5 4.2 3.4 5.1
EU 58 59 56 58 62 63 59 62 44 53 65 17.8 18.9 17.0 1.2 2.0 0.5
Rest of World 40 36 40 39 33 39 42 40 29 33 39 11.4 12.0 10.9 -0.2 -0.6 0.2
Intra-OECS 12 13 13 11 15 12 9 9 8 7 12 3.4 4.1 2.8 -0.4 -0.4 -0.5

Intra-CARICOM 59 64 68 68 71 72 77 77 67 69 78 21.5 21.3 21.7 2.9 4.1 1.8
Extra-regional 241 238 238 245 261 264 278 278 209 246 315 78.5 78.7 78.3 2.7 1.8 3.6
St Vincent World 134 130 134 146 182 192 201 162 186 178 201 100.0 100.0 100.0 4.2 7.5 0.9
& Grens. US and Canada 54 49 55 61 77 82 82 66 71 76 89 41.3 41.1 41.6 5.0 8.5 1.7
CARICOM (non-OECS) 29 31 33 35 41 44 44 46 49 47 53 24.5 23.2 25.3 6.2 8.8 3.7
OECS 3 3 3 3 4 3 3 2 2 3 4 1.8 2.1 1.6 3.9 3.0 4.9
Latin America 5 4 4 8 10 8 8 8 11 9 13 4.8 4.3 5.1 9.4 9.9 8.8
EU 32 32 29 28 37 42 46 25 39 27 26 19.7 21.8 18.4 -2.2 5.6 -9.4
Rest of World 11 10 10 11 15 13 18 13 14 15 18 8.0 7.6 8.1 5.0 4.1 6.0
Intra-OECS 3 3 3 3 4 3 3 2 2 3 4 1.8 2.1 1.6 3.9 3.0 4.9

Intra-CARICOM 31 34 36 38 44 47 47 49 51 50 57 26.3 25.2 26.8 6.0 8.4 3.8
Extra-regional 102 96 98 108 138 145 154 113 136 128 145 73.7 74.8 73.2 3.5 7.2 -0.1
Shares (%) AAGR (%)

OECS World 938 1,138 1,117 1,205 1,259 1,453 1,861 2,016 1,579 1,702 1,709 100.0 100.0 100.0 6.2 9.1 3.3
US and Canada 424 407 471 515 546 557 606 686 582 591 727 38.3 41.1 36.3 5.5 5.6 5.5
CARICOM (non-OECS) 153 182 196 209 227 251 261 265 253 253 287 15.9 17.1 15.2 6.5 10.4 2.7
OECS 38 40 41 37 43 37 38 38 35 37 44 2.7 3.3 2.2 1.6 -0.6 3.8
Latin America 31 30 31 40 44 42 45 83 81 81 89 3.7 3.1 4.1 11.1 6.3 16.2
EU 201 384 272 265 289 416 765 778 446 516 330 29.2 25.7 31.5 5.1 15.7 -4.5
Rest of World 91 95 106 139 109 151 147 165 183 223 231 10.3 9.7 10.7 9.8 10.6 8.9
Intra-OECS 38 40 41 37 43 37 38 38 35 37 44 2.7 3.3 2.2 1.6 -0.6 3.8

Intra-CARICOM 191 222 237 247 270 288 298 304 288 290 331 18.6 20.5 17.4 5.7 8.6 2.9
Extra-regional 747 915 880 958 989 1,165 1,563 1,712 1,291 1,411 1,378 81.4 79.5 82.6 6.3 9.3 3.4
Source: Author using UN-COMTRADE (with some estimates using IMF, USITC and WTO data).
58
Table 12. Intra-regional Merchandise Trade, 1993-2003
Exports (US$ mn) Shares (%) Avg Ann Growth (%)

Reporter Partner 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 93-03 93-98 98-03 93-03 93-98 98-03
OECS CARICOM 85.0 75.6 79.8 72.5 81.4 88.2 90.1 90.1 89.1 96.8 106.2 100.0 100.0 100.0 2.3 0.8 3.8
Antigua & Barbuda 7.8 7.8 8.5 7.9 9.6 9.0 10.9 10.7 9.0 8.7 9.1 10.4 10.5 10.3 1.5 2.8 0.2
The Bahamas 0.2 0.2 0.2 0.3 0.2 0.1 0.1 0.1 0.1 0.5 0.3 0.2 0.2 0.2 4.1 -21.9 38.9
Barbados 8.1 9.8 12.1 8.2 10.7 11.7 15.7 14.9 16.5 16.7 15.2 14.6 12.5 16.2 6.5 7.7 5.4
Belize 0.3 0.3 0.3 0.2 0.3 0.1 0.2 0.2 0.2 0.2 0.7 0.3 0.3 0.3 9.7 -12.6 37.7
Dominica 19.6 9.7 10.7 7.1 5.4 6.0 5.8 6.3 5.4 6.5 7.1 9.4 12.1 6.6 -9.7 -21.2 3.5
Grenada 5.1 3.5 4.9 3.2 3.9 3.6 4.0 3.5 3.2 4.1 5.3 4.6 5.0 4.2 0.3 -6.7 7.9
Guyana 3.3 4.2 4.8 4.9 5.4 5.9 5.1 5.4 5.5 5.6 6.5 5.9 5.9 6.1 7.1 12.3 2.2
Jamaica 6.9 7.2 6.8 12.1 13.4 18.5 15.9 14.9 12.9 11.8 11.1 13.8 13.4 15.2 4.9 21.7 -9.7
Montserrat 1.2 1.7 1.2 0.8 1.0 0.4 0.9 0.9 0.8 0.7 0.7 1.1 1.3 0.8 -5.9 -18.6 8.8
St. Kitts & Nevis 3.7 5.2 3.5 3.5 4.0 3.9 6.6 8.5 5.7 5.9 6.7 6.0 5.0 6.7 6.0 1.0 11.2
St. Lucia 10.7 10.8 11.9 9.8 11.5 10.9 9.4 9.7 9.2 8.8 9.6 11.8 13.6 10.3 -1.1 0.5 -2.6
St Vincent 3.4 2.6 2.7 2.7 2.8 2.9 2.1 1.9 2.3 4.0 5.9 3.5 3.6 3.4 5.5 -3.5 15.2
Suriname 0.3 0.3 0.2 0.9 1.2 0.4 0.7 0.8 1.0 1.0 1.1 0.8 0.7 0.9 12.3 1.4 24.3
Trinidad & Tobago 14.3 12.3 12.1 11.1 12.3 14.9 12.6 12.1 17.2 22.3 27.1 17.6 16.0 18.9 6.6 0.8 12.7
Imports (US$ mn) Shares (%) Avg Ann Growth (%)

Reporter Partner 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 93-03 93-98 98-03 93-03 93-98 98-03
OECS CARICOM 191.2 222.9 237.8 247.1 270.4 288.1 298.8 304.2 288.3 290.6 331.7 100.0 100.0 100.0 5.7 8.5 2.9
Antigua & Barbuda 3.5 3.1 2.2 2.7 5.1 1.5 3.1 2.7 2.2 2.4 3.2 1.1 1.2 0.8 -0.8 -14.9 15.5
The Bahamas 1.7 0.1 0.1 0.2 2.4 0.4 0.3 0.4 0.4 0.5 0.6 0.2 0.3 0.2 -9.4 -24.9 9.2
Barbados 28.0 28.7 36.6 36.6 41.0 46.2 43.2 40.1 36.0 37.5 38.9 13.9 14.9 13.4 3.4 10.6 -3.4
Belize 0.2 0.4 0.5 0.5 0.6 0.4 0.5 0.5 0.6 0.6 0.7 0.2 0.2 0.2 11.8 12.5 11.0
Dominica 6.3 7.3 7.1 7.8 7.9 10.1 8.9 8.0 6.9 7.4 8.2 2.9 3.2 2.7 2.6 9.7 -4.0
Grenada 4.0 3.7 4.1 4.3 6.7 4.8 5.8 8.0 8.7 7.9 10.4 2.3 1.9 2.5 10.0 3.6 16.8
Guyana 7.6 9.6 10.8 8.5 11.0 12.6 13.5 16.6 15.6 15.2 16.0 4.6 4.1 5.0 7.8 10.7 4.8
Jamaica 16.7 17.2 16.2 17.0 16.9 11.6 12.7 12.7 12.7 15.1 16.3 5.6 6.6 4.5 -0.2 -7.1 7.1
Montserrat 0.1 0.3 0.1 0.3 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 -15.7 -28.3 -1.0
St. Kitts & Nevis 1.1 1.2 1.3 1.1 1.0 1.0 0.9 0.9 0.8 0.7 0.7 0.4 0.5 0.3 -3.9 -2.0 -5.8
St. Lucia 5.4 7.1 9.3 5.3 4.8 4.5 6.5 7.3 7.8 10.1 11.7 2.7 2.5 2.7 8.1 -3.4 20.8
St. Vincent & Grens. 17.5 17.4 17.3 15.8 17.5 15.3 12.5 11.5 8.7 7.9 10.1 5.1 6.9 3.7 -5.3 -2.7 -7.8
Suriname 0.0 0.0 0.0 0.4 0.3 0.3 0.3 0.3 0.3 0.3 0.4 0.1 0.1 0.1 82.5 226.3 2.0
Trinidad & Tobago 99.1 126.7 132.2 146.6 155.2 179.7 190.6 195.2 187.5 184.9 214.4 61.0 57.6 64.0 8.0 12.7 3.6
59
Table 13. OECS: Merchandise Trade by Sector, 1993-2003
Total Exports Shares (%)

US$ millions 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 93-03 93-98 98-03
Ag. Raw Materials 1 1 1 1 0 0 0 0 1 0 1 0.3 0.3 0.2
Food 177 149 163 153 147 109 142 123 117 109 101 54.2 61.0 48.7
Ores & Metals 0 1 1 1 1 0 2 2 2 2 2 0.5 0.3 0.7
Fuels 0 0 0 0 0 0 0 0 0 9 12 0.8 0.0 1.5
Manufactures 121 108 113 79 91 50 96 153 122 119 157 44.0 38.1 48.6
Misc. Manufs. 0 0 0 0 4 0 0 0 0 2 2 0.3 0.3 0.3
Total 300 259 277 234 243 160 240 278 242 241 273 100.0 100.0 100.0
Intra-regional Exports Shares (%)

US$ millions 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 93-03 93-98 98-03
Ag. Raw Materials 0 0 0 0 0 0 0 0 0 0 0 0.1 0.1 0.1
Food 36 32 35 30 36 30 38 38 41 35 37 44.1 46.3 44.0
Ores & Metals 0 0 0 0 0 0 1 0 0 0 0 0.3 0.1 0.4
Fuels 0 0 0 0 0 0 0 0 0 9 12 2.4 0.1 4.2
Manufactures 47 41 43 40 41 18 47 47 44 47 51 52.9 53.3 51.0
Misc. Manufs. 0 0 0 0 0 0 0 0 0 1 1 0.2 0.0 0.3
Total 84 74 78 70 77 49 86 86 85 92 100 100.0 100.0 100.0
Total Imports Shares (%)

US$ millions 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 93-03 93-98 98-03
Ag. Raw Materials 18 21 20 15 23 17 23 26 21 23 25 2.3 2.4 2.2
Food 190 190 206 186 233 177 230 239 223 222 243 23.1 24.7 22.0
Ores & Metals 5 6 6 6 12 6 8 8 8 8 7 0.8 0.9 0.7
Fuels 56 47 54 58 73 48 71 99 92 86 111 7.9 7.0 8.4
Manufactures 501 509 533 475 620 479 710 727 650 669 793 65.9 65.0 66.6
Misc. Manufs. 0 0 0 0 1 0 0 0 0 0 0 0.0 0.0 0.0
Total 770 774 819 741 962 727 1,043 1,099 995 1,008 1,179 100.0 100.0 100.0
Intra-regional Imports Shares (%)

US$ millions 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 93-03 93-98 98-03
Ag. Raw Materials 1 1 1 1 1 1 1 1 1 1 1 0.5 0.5 0.5
Food 53 55 59 47 68 52 69 70 67 63 70 28.5 30.1 27.4
Ores & Metals 1 2 2 1 3 1 2 1 2 2 2 0.8 0.9 0.7
Fuels 36 34 40 39 53 34 58 82 76 71 87 25.8 21.1 28.7
Manufactures 83 89 93 78 99 86 110 105 96 100 111 44.4 47.4 42.7
Misc. Manufs. 0 0 0 0 0 0 0 0 0 0 0 0.0 0.0 0.0
Total 175 181 194 167 224 174 240 260 241 237 270 100.0 100.0 100.0
Note: OECS excludes Antigua & Barbuda and Montserrat due to lack of comparable data.
60
Table 14. Top 20 Exports to the World, 1993-1996 and 2000-2003
OECS 1993-1996 OECS 2000-2003
Share Acc. Share Acc.
0573 "Bananas,fresh or dried" 37.0 37.0 0573 "Bananas,fresh or dried" 17.8 17.8
5541 Soap;organic surface-active product 5.2 42.3 7721 "Elect.app.such as switches,relays,f" 9.1 26.9
0611 "Sugars,beet and cane,raw,solid" 4.0 46.3 07524 "Nutmeg,mace and cardamoms" 5.1 32.0
04601 Flour of wheat or of meslin 3.5 49.8 5541 Soap;organic surface-active product 4.5 36.5
84521 "Dresses,skirts,suits etc,of wool or" 2.5 52.3 04601 Flour of wheat or of meslin 3.6 40.1
07524 "Nutmeg,mace and cardamoms" 1.7 54.0 1123 "Beer made from malt (includ.ale,sto 3.0 43.1
1123 "Beer made from malt (includ.ale,sto 1.7 55.6 5530 Perfumery,cosmetics,etc 2.5 45.6
04221 "Rice,semi/wholly milled,excl.broke 1.6 57.2 77884 "Elect.capacitors,condensers, fixed " 2.2 47.8
7721 "Elect.app.such as switches,relays,f" 1.5 58.7 7599 Parts of and accessories suitable f 2.2 50.0
05481 "Manioc,arrowroot,salep,jerusalem a 1.5 60.1 77323 Electrical insulators of ceramic ma 2.1 52.1
84512 "Jerseys,pull-overs,etc.of cotton" 1.5 61.6 0611 "Sugars,beet and cane,raw,solid" 1.9 54.0
84651 Brassieres 1.2 62.8 33421 Kerosene (including kerosene type j 1.8 55.8
0721 "Cocoa beans,whole or broken,raw o 1.2 64.0 05481 "Manioc,arrowroot,salep,jerusalem a 1.6 57.4
64174 "Paper & paperboard,corrugated,emb 1.1 65.1 79321 Yachts & other vessels for pleasure 1.6 59.0
11102 "Lemonade,flavoured spa waters & f 0.9 66.0 7810 "Passenger motor cars,for transport " 1.3 60.2
0341 "Fish,fresh(live/dead)or chilled,exc" 0.9 66.9 11102 "Lemonade,flavoured spa waters & f 1.2 61.5
7643 Radiotelegraphic & radiotelephonic 0.7 67.7 7643 Radiotelegraphic & radiotelephonic 1.2 62.7
53342 Other paints & enamels;varnishes & 0.7 68.3 04221 "Rice,semi/wholly milled,excl.broke 1.2 63.8
8933 Ornamental art.and objects of mat.o 0.6 69.0 7723 "Resistors,fixed or variable and par" 1.1 64.9
04212 "Rice,husked but not further prepare 0.6 69.6 08199 Sweetened forage; other preptns.for 0.9 65.8
Total (1,098 products) 100.0 Total (1,077 products) 100.0
Note: OECS includes Dominica, Grenada, St Kitts & Nevis, St Lucia and St Vincent & the Grens.
Dominica 1993-1996 Dominica 2000-2003

0573 "Bananas,fresh or dried" 44.4 44.4 5541 Soap;organic surface-active product 24.7 24.7
5541 Soap;organic surface-active product 28.6 73.0 0573 "Bananas,fresh or dried" 21.2 46.0
05481 "Manioc,arrowroot,salep,jerusalem a 2.9 76.0 5530 Perfumery,cosmetics,etc 13.8 59.8
53342 Other paints & enamels;varnishes & 2.5 78.4 59141 Disinfectants packed for sale etc. 3.6 63.4
5542 "Organic surface-active agents,n.e.s" 1.9 80.3 5542 "Organic surface-active agents,n.e.s" 3.6 66.9
5530 Perfumery,cosmetics,etc 1.2 81.5 05481 "Manioc,arrowroot,salep,jerusalem a 2.9 69.9
09804 Sauces;mixed condiments and mixed 0.9 82.4 53342 Other paints & enamels;varnishes & 2.9 72.8
05797 "Avocados,mangoes,guavas,fresh or 0.9 83.3 09804 Sauces;mixed condiments and mixed 2.4 75.2
05722 "Grapefruit,fresh or dried" 0.9 84.2 2733 "Sands,natural,of all kinds,whether " 2.1 77.3
59141 Disinfectants packed for sale etc. 0.7 84.9 2734 Pebbles and crushed or broken stone 1.6 78.9
05459 "Vegetables,fresh or chilled,n.e.s." 0.7 85.6 05797 "Avocados,mangoes,guavas,fresh or 1.4 80.3
07521 Vanilla 0.6 86.2 05711 "Oranges,fresh or dried" 1.2 81.5
2734 Pebbles and crushed or broken stone 0.5 86.7 05722 "Grapefruit,fresh or dried" 0.9 82.4
05711 "Oranges,fresh or dried" 0.5 87.2 05771 "Coconuts,fresh or dried,shelled or " 0.7 83.1
5839 Other polymerization and copolimer 0.4 87.7 05459 "Vegetables,fresh or chilled,n.e.s." 0.6 83.8
85101 "Footwear with outer soles & uppers 0.4 88.1 71623 Generating sets with int.comb.pisto 0.6 84.4
89931 "Candles,tapers,night-lights and the" 0.4 88.5 72342 "Mechanical shovels & excavators,s 0.6 85.0
8931 Art.for the conveyance or packing o 0.4 88.9 71622 "Generators,alternating current" 0.6 85.6
2733 "Sands,natural,of all kinds,whether " 0.3 89.2 05798 Other fresh fruit 0.6 86.1
7810 "Passenger motor cars,for transport " 0.3 89.5 11102 "Lemonade,flavoured spa waters & f 0.5 86.7
Total (529 products) 100.0 Total (510 products) 100.0
Note: Exports include re-exports and represent total sum for the period.
Source: UN-COMTRADE.
61
Table 14. Top 20 Exports to the World, 1993-1996 and 2000-2003 (Cont'd)
Grenada 1993-1996 Grenada 2000-2003

07524 "Nutmeg,mace and cardamoms" 18.3 18.3 07524 "Nutmeg,mace and cardamoms" 21.9 21.9
0721 "Cocoa beans,whole or broken,raw o 12.0 30.4 7599 Parts of and accessories suitable f 9.3 31.2
0341 "Fish,fresh(live/dead)or chilled,exc" 9.3 39.6 7721 "Elect.app.such as switches,relays,f" 9.3 40.5
0573 "Bananas,fresh or dried" 6.6 46.2 77323 Electrical insulators of ceramic ma 9.2 49.7
04601 Flour of wheat or of meslin 5.4 51.6 04601 Flour of wheat or of meslin 7.0 56.7
84843 "Hats & other headgear,knitted or cr 4.9 56.5 0342 "Fish,frozen (excluding fillets)" 3.2 59.9
89399 "Other articles,n.e.s.of mat.of div." 4.4 60.9 64243 "Toilet paper,cut to size,in rolls o" 3.0 63.0
64243 "Toilet paper,cut to size,in rolls o" 4.1 65.0 79382 "Light vessels,fire-floats,dredgers " 3.0 65.9
69731 Cooking apparatus & plate warmers 2.7 67.7 0341 "Fish,fresh(live/dead)or chilled,exc" 2.5 68.5
77521 Refrigerators of household type 2.6 70.3 0721 "Cocoa beans,whole or broken,raw o 2.3 70.7
11102 "Lemonade,flavoured spa waters & f 2.4 72.7 08199 Sweetened forage; other preptns.for 2.0 72.7
05798 Other fresh fruit 2.3 75.1 72346 "Other excavating,levelling,extracti" 1.7 74.4
53342 Other paints & enamels;varnishes & 2.3 77.4 72848 Other mach.having individual functi 1.6 76.0
0342 "Fish,frozen (excluding fillets)" 2.2 79.6 71623 Generating sets with int.comb.pisto 1.4 77.4
69605 "Other articles of cutlery,secateurs" 2.0 81.6 81242 Lamps & lighting fittings of base m 1.3 78.7
05797 "Avocados,mangoes,guavas,fresh or 1.7 83.3 72342 "Mechanical shovels & excavators,s 1.3 79.9
0360 "Crustaceans and molluscs,fresh,chi 1.6 84.9 89399 "Other articles,n.e.s.of mat.of div." 1.0 81.0
08199 Sweetened forage; other preptns.for 1.5 86.4 67491 "Oth.sheets & plates,of oth.than hig" 0.9 81.9
67491 "Oth.sheets & plates,of oth.than hig" 0.8 87.2 84629 "Other under garments,knitted,of cot 0.8 82.7
64284 "Handkerchiefs,cleansing tissues,& o 0.7 87.9 53342 Other paints & enamels;varnishes & 0.8 83.5
St. Kitts & Nevis 1993-1996 St. Kitts & Nevis 2000-2003
0611 "Sugars,beet and cane,raw,solid" 43.4 43.4 7721 "Elect.app.such as switches,relays,f" 47.6 47.6
7721 "Elect.app.such as switches,relays,f" 12.9 56.3 77884 "Elect.capacitors,condensers, fixed " 15.3 62.9
71621 Elect.motors other than direct curr 4.0 60.2 0611 "Sugars,beet and cane,raw,solid" 13.2 76.1
7169 Parts of rotating electric plant 3.8 64.1 89283 "Unused postage,revenue and simila 3.9 79.9
11102 "Lemonade,flavoured spa waters & f 3.1 67.2 76493 "Parts of a apparatus of 761--,762--" 1.6 81.5
09141 Margarine 1.9 69.1 11102 "Lemonade,flavoured spa waters & f 1.5 83.0
72341 "Bulldozers,angledozers & levellers, 1.6 70.7 72342 "Mechanical shovels & excavators,s 1.0 84.0
7161 "Motors & generators,direct current" 1.5 72.2 7169 Parts of rotating electric plant 0.8 84.8
88412 "Lenses,prisus,mirrors,optical eleme 1.2 73.4 7810 "Passenger motor cars,for transport " 0.7 85.5
89283 "Unused postage,revenue and simila 1.1 74.6 84394 Other outer garments of man made f 0.7 86.2
09149 Imitation lard & other prepated edi 1.1 75.7 09141 Margarine 0.6 86.8
7810 "Passenger motor cars,for transport " 1.0 76.7 79321 Yachts & other vessels for pleasure 0.6 87.4
72342 "Mechanical shovels & excavators,s 0.9 77.6 7642 "Microphones,loudspeakers,amplifie 0.5 87.9
69401 "Nails,tacks,staples,spiked cramps,s" 0.8 78.4 0360 "Crustaceans and molluscs,fresh,chi 0.5 88.5
76493 "Parts of a apparatus of 761--,762--" 0.7 79.1 6911 Structures & parts of struc.;iron/s 0.5 89.0
66332 "Articles of cement,of concrete/of a" 0.7 79.8 74428 "Other lifting,handling,loading mach 0.5 89.4
0483 "Macaroni,spaghetti and similar prod 0.6 80.4 69912 "Safes,strong boxes,strong room doo 0.4 89.9
84322 "Suits,costumes,women's,of cotton" 0.6 81.0 89972 "Brooms and brushes etc.of mat,bou 0.4 90.3
0615 "Molasses,whether or not decolouriz 0.6 81.6 62103 Vulcanized rubber thread and cord 0.4 90.6
0360 "Crustaceans and molluscs,fresh,chi 0.6 82.2 72722 "Mach.used in bakery,chocolate,mac 0.4 91.0
62
Table 14. Top 20 Exports to the World, 1993-1996 and 2000-2003 (Cont'd)
St. Lucia 1993-1996 St. Lucia 2000-2003

84521 "Dresses,skirts,suits etc,of wool or" 6.0 54.0 1123 "Beer made from malt (includ.ale,sto 11.5 42.4
1123 "Beer made from malt (includ.ale,sto 3.6 57.6 33421 Kerosene (including kerosene type j 6.9 49.4
84512 "Jerseys,pull-overs,etc.of cotton" 3.5 61.1 7723 "Resistors,fixed or variable and par" 4.4 53.8
84651 Brassieres 2.9 64.0 7643 Radiotelegraphic & radiotelephonic 4.2 58.0
64174 "Paper & paperboard,corrugated,emb 2.7 66.7 7810 "Passenger motor cars,for transport " 3.2 61.1
8933 Ornamental art.and objects of mat.o 1.5 68.2 84521 "Dresses,skirts,suits etc,of wool or" 2.0 63.1
7723 "Resistors,fixed or variable and par" 1.3 69.6 76381 Television image and sound recorde 1.7 64.8
7643 Radiotelegraphic & radiotelephonic 1.3 70.9 11102 "Lemonade,flavoured spa waters & f 1.5 66.3
84393 Other outer garments of cotton 1.1 71.9 65751 "Twine,cordage,ropes and cables,pla 1.2 67.6
7763 "Diodes,transistors and sim.semi-con 0.8 72.8 84522 "Dresses,skirts,suits etc,of cotton" 1.2 68.7
84411 "Shirts,men's,of cotton" 0.7 73.5 3343 Gas oils 1.0 69.7
72341 "Bulldozers,angledozers & levellers, 0.7 74.2 11249 Spirits and distilled alcoholic bev 0.9 70.6
84321 "Suits,costumes,women's,of wool or 0.7 74.9 72342 "Mechanical shovels & excavators,s 0.8 71.3
7721 "Elect.app.such as switches,relays,f" 0.6 75.5 87429 "Parts,n.e.s.& accessories for the i" 0.8 72.1
4243 Coconut (copra) oil 0.6 76.0 7763 "Diodes,transistors and sim.semi-con 0.7 72.8
7810 "Passenger motor cars,for transport " 0.5 76.5 89731 Art.of jewellery & parts of preciou 0.6 73.4
84232 "Trousers,breeches etc.of cotton" 0.5 77.0 7821 Motor vehicles for transport of goo 0.6 74.0
64243 "Toilet paper,cut to size,in rolls o" 0.4 77.4 0751 Pepper ; pimento 0.6 74.6
72342 "Mechanical shovels & excavators,s 0.4 77.8 77111 Liquid dielectric transformers 0.5 75.1
St. Vincent & the Grens. 1993-1996 St. Vincent & the Grens. 2000-2003
04221 "Rice,semi/wholly milled,excl.broke 7.1 59.3 79321 Yachts & other vessels for pleasure 7.3 49.9
05481 "Manioc,arrowroot,salep,jerusalem a 4.3 63.6 04221 "Rice,semi/wholly milled,excl.broke 6.1 56.0
04212 "Rice,husked but not further prepare 2.9 66.5 05481 "Manioc,arrowroot,salep,jerusalem a 5.7 61.7
08199 Sweetened forage; other preptns.for 2.2 68.7 11102 "Lemonade,flavoured spa waters & f 2.6 64.3
84333 "Dresses,women's,of man-made fibre 2.1 70.8 08199 Sweetened forage; other preptns.for 2.3 66.6
67491 "Oth.sheets & plates,of oth.than hig" 1.7 72.5 67491 "Oth.sheets & plates,of oth.than hig" 2.3 68.8
89731 Art.of jewellery & parts of preciou 1.6 74.1 05797 "Avocados,mangoes,guavas,fresh or 2.1 71.0
11102 "Lemonade,flavoured spa waters & f 1.3 75.4 04212 "Rice,husked but not further prepare 2.1 73.0
8931 Art.for the conveyance or packing o 0.9 76.3 8931 Art.for the conveyance or packing o 0.9 74.0
84649 "Under garments,knitted of other fib 0.9 77.2 82192 "Furniture,n.e.s. of wood" 0.9 74.9
08122 "Bran,sharps & other residues of oth 0.7 77.9 7810 "Passenger motor cars,for transport " 0.9 75.8
05797 "Avocados,mangoes,guavas,fresh or 0.7 78.6 84399 Other outer garments of other fibre 0.8 76.6
69731 Cooking apparatus & plate warmers 0.7 79.2 0360 "Crustaceans and molluscs,fresh,chi 0.8 77.4
7929 "Parts of heading 792--,excl.tyres,e" 0.6 79.9 7822 Special purpose motor lorries and v 0.8 78.2
7643 Radiotelegraphic & radiotelephonic 0.6 80.5 79381 Vessels specially designed for towi 0.7 78.9
7821 Motor vehicles for transport of goo 0.6 81.1 7821 Motor vehicles for transport of goo 0.7 79.6
72341 "Bulldozers,angledozers & levellers, 0.6 81.7 78681 "Other vehicles,not mechanically pro 0.7 80.3
74422 "Ships derricks,cranes,mobile liftin" 0.5 82.2 6353 Builders' carpentry and joinery 0.7 81.0
63
Table 15. Top 20 Exports to CARICOM, 1993-1996 and 2000-2003
OECS 1993-1996 OECS 2000-2003

5541 Soap;organic surface-active product 15.6 15.6 5541 Soap;organic surface-active product 11.2 11.2
1123 "Beer made from malt (includ.ale,sto" 5.6 33.5 1123 "Beer made from malt (includ.ale,sto" 8.4 29.8
04221 "Rice,semi/wholly milled,excl.broken 5.2 38.7 5530 Perfumery,cosmetics,etc 7.3 37.2
64174 "Paper & paperboard,corrugated,embo 3.8 42.5 33421 Kerosene (including kerosene type j 4.9 42.1
05481 "Manioc,arrowroot,salep,jerusalem ar 3.0 45.5 0573 "Bananas,fresh or dried" 3.5 45.6
0573 "Bananas,fresh or dried" 2.9 48.4 11102 "Lemonade,flavoured spa waters & fla 3.0 48.6
11102 "Lemonade,flavoured spa waters & fla 2.5 50.8 04221 "Rice,semi/wholly milled,excl.broken 3.0 51.5
53342 Other paints & enamels;varnishes & 2.3 53.1 05481 "Manioc,arrowroot,salep,jerusalem ar 2.8 54.3
08199 Sweetened forage; other preptns.for 2.2 55.3 08199 Sweetened forage; other preptns.for 2.5 56.8
04212 "Rice,husked but not further prepare" 2.1 57.4 7810 "Passenger motor cars,for transport " 2.3 59.1
64243 "Toilet paper,cut to size,in rolls o" 2.1 59.5 64243 "Toilet paper,cut to size,in rolls o" 2.2 61.4
67491 "Oth.sheets & plates,of oth.than hig" 1.7 61.1 53342 Other paints & enamels;varnishes & 2.1 63.5
69731 Cooking apparatus & plate warmers w 1.4 62.6 5542 "Organic surface-active agents,n.e.s" 1.8 65.4
77521 Refrigerators of household type 1.4 63.9 59141 Disinfectants packed for sale etc. 1.8 67.2
5542 "Organic surface-active agents,n.e.s" 1.3 65.2 67491 "Oth.sheets & plates,of oth.than hig" 1.8 69.0
8931 Art.for the conveyance or packing o 0.9 66.2 05797 "Avocados,mangoes,guavas,fresh or d 1.4 70.4
72341 "Bulldozers,angledozers & levellers," 0.9 67.1 04212 "Rice,husked but not further prepare" 1.1 71.5
4243 Coconut (copra) oil 0.9 67.9 72346 "Other excavating,levelling,extracti" 0.8 72.4
7810 "Passenger motor cars,for transport " 0.7 68.6 81242 Lamps & lighting fittings of base m 0.8 73.2
Note: OECS includes Dominica, Grenada, St Kitts & Nevis, St Lucia and St Vincent & the Grens.
Dominica 1993-1996 Dominica 2000-2003

5541 Soap;organic surface-active product 63.2 63.2 5541 Soap;organic surface-active product 36.9 36.9
53342 Other paints & enamels;varnishes & 6.3 69.5 5530 Perfumery,cosmetics,etc 24.2 61.1
5542 "Organic surface-active agents,n.e.s" 4.7 74.2 59141 Disinfectants packed for sale etc. 6.1 67.2
0573 "Bananas,fresh or dried" 3.2 77.4 5542 "Organic surface-active agents,n.e.s" 6.1 73.3
5530 Perfumery,cosmetics,etc 2.1 79.5 53342 Other paints & enamels;varnishes & 4.8 78.1
59141 Disinfectants packed for sale etc. 1.7 81.2 0573 "Bananas,fresh or dried" 4.5 82.6
05481 "Manioc,arrowroot,salep,jerusalem ar 1.3 82.5 05481 "Manioc,arrowroot,salep,jerusalem ar 1.8 84.4
5839 Other polymerization and copolimeri 1.1 83.6 05711 "Oranges,fresh or dried" 1.4 85.7
89931 "Candles,tapers,night-lights and the" 1.0 84.6 05797 "Avocados,mangoes,guavas,fresh or d 1.2 87.0
85101 "Footwear with outer soles & uppers, 1.0 85.6 05459 "Vegetables,fresh or chilled,n.e.s." 0.9 87.9
8931 Art.for the conveyance or packing o 0.9 86.5 05771 "Coconuts,fresh or dried,shelled or " 0.9 88.8
05711 "Oranges,fresh or dried" 0.7 87.2 05798 Other fresh fruit 0.8 89.6
0483 "Macaroni,spaghetti and similar prod" 0.7 87.9 1222 Cigarettes 0.7 90.3
1222 Cigarettes 0.6 88.5 5543 "Polishes & creams,for footwear,furn" 0.7 91.0
7416 Mach.plant & sim.lab.equip.involv.a 0.5 89.1 05721 "Lemons and limes,fresh or dried" 0.6 91.6
05797 "Avocados,mangoes,guavas,fresh or d 0.5 89.6 05722 "Grapefruit,fresh or dried" 0.5 92.1
7239 Parts of the machinery of 723.41 to 0.5 90.1 2734 Pebbles and crushed or broken stone 0.5 92.6
7810 "Passenger motor cars,for transport " 0.5 90.5 89931 "Candles,tapers,night-lights and the" 0.5 93.1
05857 Juice of any other fruit or vegetab 0.4 91.0 05857 Juice of any other fruit or vegetab 0.4 93.4
05459 "Vegetables,fresh or chilled,n.e.s." 0.4 91.4 7810 "Passenger motor cars,for transport " 0.3 93.7
64
Table 15. Top 20 Exports to CARICOM, 1993-1996 and 2000-2003 (Cont'd)
Grenada 1993-1996 Grenada 2000-2003

64243 "Toilet paper,cut to size,in rolls o" 13.2 30.9 64243 "Toilet paper,cut to size,in rolls o" 12.5 41.4
69731 Cooking apparatus & plate warmers w 8.9 39.7 08199 Sweetened forage; other preptns.for 8.1 49.6
77521 Refrigerators of household type 8.7 48.4 72346 "Other excavating,levelling,extracti" 5.4 54.9
53342 Other paints & enamels;varnishes & 7.5 55.9 81242 Lamps & lighting fittings of base m 4.7 59.6
11102 "Lemonade,flavoured spa waters & fl 5.6 61.6 67491 "Oth.sheets & plates,of oth.than hig" 3.9 63.5
08199 Sweetened forage; other preptns.for 5.0 66.6 84629 "Other under garments,knitted,of cot" 3.4 66.9
67491 "Oth.sheets & plates,of oth.than hig" 2.8 69.4 53342 Other paints & enamels;varnishes & 3.2 70.1
64284 "Handkerchiefs,cleansing tissues,& o" 2.3 71.7 72848 Other mach.having individual functi 2.8 72.8
05798 Other fresh fruit 1.9 73.6 74422 "Ships derricks,cranes,mobile liftin" 2.5 75.3
84629 "Other under garments,knitted,of cot" 1.8 75.3 66511 "Carboys,bottles,jars,pots,tubular c" 2.0 77.3
83101 Handbags 1.6 76.9 7642 "Microphones,loudspeakers,amplifier 1.8 79.2
72346 "Other excavating,levelling,extracti" 1.5 78.5 73621 "Forging & stamping machines,metalw 1.6 80.7
7764 Electronic microcircuits 1.1 79.6 7929 "Parts of heading 792--,excl.tyres,e" 1.4 82.1
7810 "Passenger motor cars,for transport " 1.0 80.6 07524 "Nutmeg,mace and cardamoms" 1.1 83.3
0360 "Crustaceans and molluscs,fresh,chil" 1.0 81.6 7810 "Passenger motor cars,for transport " 1.1 84.4
07524 "Nutmeg,mace and cardamoms" 0.9 82.5 7821 Motor vehicles for transport of goo 1.1 85.4
64285 Sanitary towels & tampons of paper/ 0.9 83.4 72342 "Mechanical shovels & excavators,sel 1.0 86.4
7224 "Wheeled tractors,not incl. in 744.1" 0.8 84.2 11102 "Lemonade,flavoured spa waters & fla 1.0 87.3
88122 "Cinematographic cameras,projectors 0.7 84.9 6911 Structures & parts of struc.;iron/s 0.9 88.3
St. Kitts & Nevis 1993-1996 St. Kitts & Nevis 2000-2003
09141 Margarine 13.2 13.2 11102 "Lemonade,flavoured spa waters & fla 22.1 22.1
72341 "Bulldozers,angledozers & levellers," 12.4 25.6 09141 Margarine 10.5 32.6
11102 "Lemonade,flavoured spa waters & fl 12.3 37.9 79321 Yachts & other vessels for pleasure 8.5 41.1
09149 Imitation lard & other prepated edi 7.5 45.4 0483 "Macaroni,spaghetti and similar prod" 6.7 47.8
72342 "Mechanical shovels & excavators,sel 6.6 52.0 6911 Structures & parts of struc.;iron/s 6.3 54.2
0483 "Macaroni,spaghetti and similar prod" 4.5 56.5 89283 "Unused postage,revenue and similar 5.1 59.3
74422 "Ships derricks,cranes,mobile liftin" 4.0 60.4 7642 "Microphones,loudspeakers,amplifier 4.9 64.1
89283 "Unused postage,revenue and similar 3.3 63.7 09149 Imitation lard & other prepated edi 4.5 68.7
09809 "Food preparations,n.e.s." 2.5 66.2 81242 Lamps & lighting fittings of base m 2.4 71.1
78612 Trailers & semi-trailers for transp 2.3 68.5 09809 "Food preparations,n.e.s." 1.9 73.0
7810 "Passenger motor cars,for transport " 1.9 70.4 7161 "Motors & generators,direct current" 1.8 74.8
7233 "Road rollers,mechanically propelled" 1.7 72.1 66511 "Carboys,bottles,jars,pots,tubular c" 1.7 76.6
7821 Motor vehicles for transport of goo 1.6 73.6 84233 "Trousers,breeches etc.of man-made f 1.5 78.1
0615 "Molasses,whether or not decolourize 1.5 75.2 7810 "Passenger motor cars,for transport " 1.3 79.4
84239 "Trousers,breeches etc.of other fibr" 1.2 76.3 11249 Spirits and distilled alcoholic bev 1.2 80.7
69401 "Nails,tacks,staples,spiked cramps,s" 1.1 77.4 72342 "Mechanical shovels & excavators,sel 1.2 81.8
7643 Radiotelegraphic & radiotelephonic 0.8 78.2 84239 "Trousers,breeches etc.of other fibr" 1.2 83.0
84411 "Shirts,men's,of cotton" 0.8 79.0 89211 "Printed books,booklets,brochures,le" 1.0 84.0
6911 Structures & parts of struc.;iron/s 0.7 79.7 0149 Other prepared or preserved meat or 0.9 84.9
79328 "Ships,boats and other vessels,n.e.s" 0.7 80.5 0611 "Sugars,beet and cane,raw,solid" 0.9 85.9
65
Table 15. Top 20 Exports to CARICOM, 1993-1996 and 2000-2003 (Cont'd)
St. Lucia 1993-1996 St. Lucia 2000-2003

1123 "Beer made from malt (includ.ale,sto" 21.4 21.4 1123 "Beer made from malt (includ.ale,sto" 31.3 31.3
64174 "Paper & paperboard,corrugated,emb 15.6 37.1 33421 Kerosene (including kerosene type j 18.6 49.9
4243 Coconut (copra) oil 3.4 40.5 7810 "Passenger motor cars,for transport " 6.1 56.0
64243 "Toilet paper,cut to size,in rolls o" 2.5 43.0 11102 "Lemonade,flavoured spa waters & fla 3.8 59.8
77521 Refrigerators of household type 2.2 45.2 3343 Gas oils 2.4 62.3
11102 "Lemonade,flavoured spa waters & fl 2.1 47.2 0573 "Bananas,fresh or dried" 2.0 64.3
59229 "Prepared glues,n.e.s." 1.7 49.0 7643 Radiotelegraphic & radiotelephonic 1.5 65.7
72842 Mach. for the rubber & artifical pl 1.3 50.3 11249 Spirits and distilled alcoholic bev 1.4 67.2
0573 "Bananas,fresh or dried" 0.9 51.2 59229 "Prepared glues,n.e.s." 1.3 68.4
5912 Fungicides packed for sale etc. 0.9 52.1 74422 "Ships derricks,cranes,mobile liftin" 0.9 69.3
7810 "Passenger motor cars,for transport " 0.9 53.0 66511 "Carboys,bottles,jars,pots,tubular c" 0.8 70.1
72341 "Bulldozers,angledozers & levellers," 0.9 53.8 7821 Motor vehicles for transport of goo 0.7 70.8
72849 Parts of the mach.of 723.48 & 727.2 0.7 54.5 8931 Art.for the conveyance or packing o 0.7 71.6
67491 "Oth.sheets & plates,of oth.than hig" 0.6 55.1 84629 "Other under garments,knitted,of cot" 0.7 72.2
7721 "Elect.app.such as switches,relays,f" 0.6 55.7 72342 "Mechanical shovels & excavators,sel 0.7 72.9
7822 Special purpose motor lorries and v 0.6 56.3 53342 Other paints & enamels;varnishes & 0.6 73.5
09804 Sauces;mixed condiments and mixed 0.5 56.8 89731 Art.of jewellery & parts of preciou 0.6 74.1
05795 "Pineapples,fresh or dried" 0.5 57.4 79321 Yachts & other vessels for pleasure 0.5 74.6
72346 "Other excavating,levelling,extracti" 0.5 57.9 69735 Domestic-type water heaters and par 0.5 75.1
65224 Oth.woven fabrics cont.85% of cotto 0.5 58.4 76381 Television image and sound recorder 0.5 75.5
St. Vincent & the Grens. 1993-1996 St. Vincent & the Grens. 2000-2003
04221 "Rice,semi/wholly milled,excl.broken 14.0 42.1 04221 "Rice,semi/wholly milled,excl.broken 11.4 33.6
05481 "Manioc,arrowroot,salep,jerusalem ar 7.2 49.3 05481 "Manioc,arrowroot,salep,jerusalem ar 8.7 42.3
04212 "Rice,husked but not further prepare" 5.6 55.0 0573 "Bananas,fresh or dried" 6.3 48.5
0573 "Bananas,fresh or dried" 4.8 59.8 11102 "Lemonade,flavoured spa waters & fla 5.3 53.8
08199 Sweetened forage; other preptns.for 4.5 64.3 08199 Sweetened forage; other preptns.for 4.8 58.6
67491 "Oth.sheets & plates,of oth.than hig" 3.4 67.6 67491 "Oth.sheets & plates,of oth.than hig" 4.7 63.3
11102 "Lemonade,flavoured spa waters & fl 2.5 70.1 04212 "Rice,husked but not further prepare" 4.2 67.5
8931 Art.for the conveyance or packing o 1.9 72.0 05797 "Avocados,mangoes,guavas,fresh or d 3.9 71.4
08122 "Bran,sharps & other residues of oth" 1.4 73.4 8931 Art.for the conveyance or packing o 2.0 73.4
69731 Cooking apparatus & plate warmers w 1.4 74.8 79381 Vessels specially designed for towi 1.5 74.9
7643 Radiotelegraphic & radiotelephonic 1.3 76.0 7810 "Passenger motor cars,for transport " 1.5 76.3
05797 "Avocados,mangoes,guavas,fresh or d 1.0 77.0 6912 Structures & parts of struc.;alumin 1.1 77.4
1123 "Beer made from malt (includ.ale,sto" 1.0 78.0 07526 Ginger (excl.ginger preserved in su 1.0 78.4
67327 "Bars & rods,forged,cold-formed or c 0.8 78.8 6353 Builders' carpentry and joinery 1.0 79.4
72833 "Mach.for mixing or kneading earth,s 0.8 79.6 0360 "Crustaceans and molluscs,fresh,chil" 0.9 80.3
05771 "Coconuts,fresh or dried,shelled or " 0.7 80.3 08122 "Bran,sharps & other residues of oth" 0.9 81.2
79328 "Ships,boats and other vessels,n.e.s" 0.7 81.1 82192 "Furniture,n.e.s. of wood" 0.8 82.0
77886 Other elect.appl.having individual 0.7 81.8 64243 "Toilet paper,cut to size,in rolls o" 0.8 82.8
7821 Motor vehicles for transport of goo 0.7 82.4 71622 "Generators,alternating current" 0.7 83.5
66
Table 16. OECS: International Competitiveness of Exports, 1997-2003
Category Count Export Share
Champions 79 36%
Achievers in Adversity 14 4%
Underachievers 89 53%
Declining Sectors 15 6%
Total 197 100%
Export Share World Import Export Sum

Code Product AAGR 97-03 AAGR 97-03 1997-2003 Category
Food and Live Animals
001 Live animals chiefly for food -38% 0% 0.0% Underachiever
011 Meat,edible meat offals, fresh, chi 9% 3% 0.0% Champion
012 Meat & edible offals,salted,in brin -35% 3% 0.0% Underachiever
014 Meat & edib.offals,prep./pres.,fish -19% 6% 0.0% Underachiever
022 Milk and cream -7% 3% 0.0% Underachiever
023 Butter -47% 1% 0.0% Underachiever
024 Cheese and curd -25% 5% 0.0% Underachiever
025 Eggs and yolks,fresh,dried or other -100% 2% 0.0% Underachiever
034 Fish,fresh (live or dead),chilled o -9% 4% 1.8% Underachiever
035 Fish,dried,salted or in brine ; smo -3% 2% 0.0% Underachiever
036 Crustaceans and molluscs,fresh,chil 21% 2% 0.3% Champion
037 Fish,crustaceans and molluscs,prepa -44% 3% 0.0% Underachiever
042 Rice -8% 0% 2.0% Declining Sector
045 Cereals,unmilled ( no wheat,rice,ba -100% 0% 0.0% Declining Sector
046 Meal and flour of wheat and flour o 1% -8% 4.3% Achiever in Adversity
047 Other cereal meals and flours 207% 3% 0.0% Champion
048 Cereal prepar. & preps. of flour of -1% 7% 0.2% Underachiever
054 Vegetab.,fresh,chilled,frozen/pres. -8% 5% 2.0% Underachiever
056 Vegetab.,roots & tubers,prepared/pr 41% 3% 0.0% Champion
057 Fruit & nuts(not includ. oil nuts), -12% 4% 25.6% Underachiever
058 Fruit,preserved,and fruit preparati -2% 4% 0.1% Underachiever
061 Sugar and honey -16% -1% 3.5% Declining Sector
062 Sugar confectionery and other sugar -45% 5% 0.0% Underachiever
071 Coffee and coffee substitutes 4% -8% 0.0% Achiever in Adversity
072 Cocoa -12% 9% 0.6% Underachiever
073 Chocolate & other food preptns. con -31% 6% 0.0% Underachiever
074 Tea and mate -4% 0% 0.0% Underachiever
075 Spices 2% 3% 6.2% Champion
081 Feed.stuff for animals(not incl.unm 1% 1% 1.1% Champion
091 Margarine and shortening -9% 3% 0.2% Underachiever
098 Edible products and preparations n. -4% 6% 0.7% Underachiever
Beverages and Tobacco
111 Non alcoholic beverages,n.e.s. -3% 10% 1.4% Underachiever
112 Alcoholic beverages 8% 5% 3.4% Champion
122 Tobacco manufactured -1% 2% 0.1% Underachiever
Crude Materials except Fuels
222 Oil seeds and oleaginous fruit,whol 22% 5% 0.0% Champion
223 Oils seeds and oleaginous fruit, wh -50% -1% 0.0% Declining Sector
245 Fuel wood (excluding wood waste) an -9% 8% 0.0% Underachiever
246 Pulpwood (including chips and wood -100% 0% 0.0% Declining Sector
247 Other wood in the rough or roughly 100% 0% 0.0% Achiever in Adversity
248 Wood,simply worked,and railway slee -24% 0% 0.0% Declining Sector
251 Pulp and waste paper -14% 3% 0.1% Underachiever
263 Cotton 100% -4% 0.0% Achiever in Adversity
268 Wool and other animal hair (excludi -100% -5% 0.0% Declining Sector
269 Old clothing and other old textile 9% 0% 0.0% Champion
271 Fertilizers,crude 53% -3% 0.0% Achiever in Adversity
273 Stone,sand and gravel 9% 2% 0.7% Champion
278 Other crude minerals -25% 0% 0.0% Underachiever
282 Waste and scrap metal of iron or st 31% 9% 0.0% Champion
287 Ores and concentrates of base metal -100% 2% 0.0% Underachiever
288 Non-ferrous base metal waste and sc -19% 1% 0.0% Underachiever
291 Crude animal materials,n.e.s. 69% 0% 0.0% Achiever in Adversity
292 Crude vegetable materials, n.e.s. -4% 3% 0.1% Underachiever
Fuels
322 Coal,lignite and peat -42% 2% 0.0% Underachiever
334 Petroleum products,refined 94% 8% 0.8% Champion
335 Residual petroleum products,nes.& r -100% 7% 0.0% Underachiever
341 Gas,natural and manufactured 100% 11% 0.0% Champion
Animal and Vegetable Oils
411 Animal oils and fats -9% 0% 0.0% Underachiever
423 Fixed vegetable oils,soft,crude,ref -100% 2% 0.0% Underachiever
424 Other fixed vegetable oils,fluid or -44% 6% 0.0% Underachiever
431 Animal & vegetable oils and fats,pr -100% 5% 0.0% Underachiever
67
Table 16. OECS: International Competitiveness of Exports, 1997-2003 (Cont'd)
Chemicals
511 Hydrocarbons nes,& their halogen.& -21% 8% 0.0% Underachiever
512 Alcohols,phenols,phenol-alcohols,& -18% 5% 0.0% Underachiever
514 Nitrogen-function compounds 100% 10% 0.0% Champion
515 Organo-inorganic and heterocyclic c -100% 7% 0.0% Underachiever
516 Other organic chemicals -52% 4% 0.0% Underachiever
522 Inorganic chemical elements,oxides -4% 3% 0.0% Underachiever
523 Other inorganic chemicals -18% 1% 0.0% Underachiever
524 Radio-active and associated materia 100% 8% 0.0% Champion
531 Synth.org.dyestuffs,etc.nat.indigo -100% -2% 0.0% Declining Sector
533 Pigments,paints,varnishes & related -7% 6% 0.9% Underachiever
541 Medicinal and pharmaceutical produc 42% 16% 0.1% Champion
551 Essential oils,perfume and flavour -8% 9% 0.8% Underachiever
553 Perfumery,cosmetics and toilet prep 17% 9% 2.6% Champion
554 Soap,cleansing and polishing prepar -12% 7% 6.5% Underachiever
562 Fertilizers,manufactured -22% 1% 0.1% Underachiever
572 Explosives and pyrotechnic products 41% 6% 0.0% Champion
582 Condensation,polycondensation & pol 20% 6% 0.0% Champion
583 Polymerization and copolymerization -13% 5% 0.1% Underachiever
585 Other artificial resins and plastic -100% 3% 0.0% Underachiever
591 Disinfectants,insecticides,fungicid -3% 2% 0.7% Underachiever
592 Starches,inulin & wheat gluten;albu -19% 4% 0.3% Underachiever
598 Miscellaneous chemical products,n.e -7% 6% 0.0% Underachiever
Manufactures
612 Manufactures of leather/of composit -100% 1% 0.0% Underachiever
621 Materials of rubber(e.g.,pastes,pla 58% 6% 0.0% Champion
625 Rubber tyres,tyre cases,etc.for whe 19% 5% 0.0% Champion
628 Articles of rubber,n.e.s. 37% 6% 0.0% Champion
634 Veneers,plywood,improved or reconst 51% 2% 0.0% Champion
635 Wood manufactures,n.e.s. 9% 5% 0.2% Champion
641 Paper and paperboard -16% 4% 0.1% Underachiever
642 Paper and paperboard,cut to size or -5% 4% 2.4% Underachiever
651 Textile yarn -24% 0% 0.0% Declining Sector
652 Cotton fabrics,woven 95% 1% 0.0% Champion
653 Fabrics,woven,of man-made fibres 6% -2% 0.0% Achiever in Adversity
654 Textil.fabrics,woven,oth.than cotto -100% -2% 0.0% Declining Sector
655 Knitted or crocheted fabrics -40% 4% 0.0% Underachiever
656 Tulle,lace,embroidery,ribbons,& oth 38% 4% 0.0% Champion
657 Special textile fabrics and related 65% 3% 0.1% Champion
658 Made-up articles,wholly/chiefly of -39% 9% 0.3% Underachiever
659 Floor coverings,etc. -6% -1% 0.0% Declining Sector
661 Lime,cement,and fabricated construc -12% 3% 0.0% Underachiever
662 Clay construct.materials & refracto 38% 3% 0.0% Champion
663 Mineral manufactures,n.e.s -16% 4% 0.1% Underachiever
664 Glass 19% 6% 0.0% Champion
665 Glassware 14% 4% 0.1% Champion
666 Pottery 4% 1% 0.0% Champion
672 Ingots and other primary forms,of i -51% 5% 0.0% Underachiever
673 Iron and steel bars,rods,angles,sha -32% 3% 0.0% Underachiever
674 Universals,plates and sheets,of iro 2% 4% 0.7% Champion
678 Tubes,pipes and fittings,of iron or -10% 2% 0.0% Underachiever
679 Iron & steel castings,forgings & st -75% 5% 0.0% Underachiever
682 Copper 7% 0% 0.0% Champion
683 Nickel 100% 8% 0.0% Champion
684 Aluminium 323% 4% 0.0% Champion
685 Lead 100% -3% 0.0% Achiever in Adversity
687 Tin 100% -1% 0.0% Achiever in Adversity
689 Miscell.non-ferrous base metals emp -36% -1% 0.0% Declining Sector
691 Structures & parts of struc.;iron,s 7% 4% 0.2% Champion
692 Metal containers for storage and tr -14% 3% 0.1% Underachiever
693 Wire products and fencing grills -16% 2% 0.0% Underachiever
694 Nails,screws,nuts,bolts etc.of iron -3% 5% 0.0% Underachiever
695 Tools for use in hand or in machine -3% 3% 0.1% Underachiever
696 Cutlery 25% 4% 0.0% Champion
697 Household equipment of base metal,n 3% 7% 0.1% Champion
699 Manufactures of base metal,n.e.s. -2% 6% 0.1% Underachiever
Machine and Transport Equipment
711 Steam & other vapour generating boi 100% -4% 0.0% Achiever in Adversity
713 Internal combustion piston engines -6% 6% 0.3% Underachiever
716 Rotating electric plant and parts -10% 5% 1.1% Underachiever
718 Other power generating machinery an 30% 5% 0.0% Champion
721 Agricultural machinery and parts 51% 3% 0.0% Champion
68
Table 16. OECS: International Competitiveness of Exports, 1997-2003 (Cont'd)
722 Tractors fitted or not with power t 24% 1% 0.0% Champion
723 Civil engineering & contractors pla 24% 4% 0.9% Champion
724 Textile & leather machinery and par -22% -1% 0.0% Declining Sector
725 Paper & pulp mill mach.,mach for ma 3% -1% 0.0% Achiever in Adversity
726 Printing & bookbinding mach.and par -19% -1% 0.0% Declining Sector
727 Food processing machines and parts 58% 0% 0.0% Champion
728 Mach.& equipment specialized for pa 31% 2% 0.4% Champion
736 Mach.tools for working metal or met -16% 0% 0.1% Underachiever
737 Metal working machinery and parts 52% -2% 0.0% Achiever in Adversity
741 Heating & cooling equipment and par 19% 3% 0.1% Champion
742 Pumps for liquids,liq.elevators and -4% 5% 0.1% Underachiever
743 Pumps & compressors,fans & blowers, 1% 6% 0.0% Champion
744 Mechanical handling equip.and parts 36% 2% 0.2% Champion
745 Other non-electrical mach.tools,app 18% 4% 0.1% Champion
749 Non-electric parts and accessories 1% 5% 0.1% Champion
751 Office machines 45% -3% 0.0% Achiever in Adversity
752 Automatic data processing machines 6% 4% 0.1% Champion
759 Parts of and accessories suitable f -15% 5% 1.7% Underachiever
761 Television receivers 38% 10% 0.0% Champion
762 Radio-broadcast receivers 11% 0% 0.0% Achiever in Adversity
763 Gramophones,dictating,sound recorde 48% 13% 0.2% Champion
764 Telecommunications equipment and pa 15% 8% 1.0% Champion
771 Electric power machinery and parts 5% 3% 0.2% Champion
772 Elect.app.such as switches,relays,f 7% 6% 9.1% Champion
773 Equipment for distributing electric 56% 4% 1.7% Champion
774 Electric apparatus for medical purp 162% 8% 0.0% Champion
775 Household type,elect.& non-electric 5% 7% 0.1% Champion
776 Thermionic,cold & photo-cathode val -11% 7% 0.2% Underachiever
778 Electrical machinery and apparatus, 51% 5% 1.9% Champion
781 Passenger motor cars,for transport -15% 7% 0.8% Underachiever
782 Motor vehicles for transport of goo 37% 5% 0.4% Champion
783 Road motor vehicles,n.e.s. -4% 3% 0.0% Underachiever
784 Parts & accessories of 722--,781--, -18% 7% 0.0% Underachiever
785 Motorcycles,motor scooters,invalid 21% 5% 0.0% Champion
786 Trailers & other vehicles,not motor 57% 7% 0.1% Champion
791 Railway vehicles & associated equip -50% 8% 0.0% Underachiever
792 Aircraft & associated equipment and 24% 5% 0.1% Champion
793 Ships,boats and floating structures 16% 9% 1.2% Champion
Miscellaneous Manufactures
812 Sanitary,plumbing,heating,lighting 74% 7% 0.2% Champion
821 Furniture and parts thereof 7% 9% 0.3% Champion
831 Travel goods,handbags,brief-cases,p -7% 3% 0.1% Underachiever
842 Outer garments,men's,of textile fab -6% 2% 0.1% Underachiever
843 Outer garments,women's,of textile f -4% 5% 0.4% Underachiever
844 Under garments of textile fabrics -22% 1% 0.1% Underachiever
845 Outer garments and other articles,k -18% 5% 1.2% Underachiever
846 Under garments,knitted or crocheted -8% 6% 0.4% Underachiever
847 Clothing accessories of textile fab 12% 4% 0.1% Champion
848 Art.of apparel & clothing accessori 1% 3% 0.0% Champion
851 Footwear -15% 2% 0.1% Underachiever
871 Optical instruments and apparatus -15% 21% 0.0% Underachiever
872 Medical instruments and appliances -9% 10% 0.0% Underachiever
873 Meters and counters,n.e.s. 32% 5% 0.0% Champion
874 Measuring,checking,analysing instru 8% 5% 0.2% Champion
881 Photographic apparatus and equipmen 1% 1% 0.1% Champion
882 Photographic & cinematographic supp -15% 0% 0.0% Declining Sector
883 Cinematograph film,exposed-develope -6% 9% 0.0% Underachiever
884 Optical goods,n.e.s. 7% 8% 0.0% Champion
885 Watches and clocks 20% 0% 0.1% Champion
892 Printed matter 11% 4% 0.4% Champion
893 Articles of materials described in -13% 7% 0.6% Underachiever
894 Baby carriages,toys,games and sport 9% 4% 0.1% Champion
895 Office and stationery supplies,n.e. 6% 3% 0.0% Champion
896 Works of art,collectors pieces & an 0% 3% 0.0% Champion
897 Jewellery,goldsmiths and other art. -5% 5% 0.2% Underachiever
898 Musical instruments,parts and acces 14% 3% 0.1% Champion
899 Other miscellaneous manufactured ar -20% 9% 0.2% Underachiever
Other Commodities (not elsewhere specified)
941 Animals,live,n.e.s.,incl. zoo-anima 14% 2% 0.0% Champion
951 Armoured fighting vehicles,arms of -100% 6% 0.0% Underachiever
69
Table 17. OECS Member States: Trade Intensity Index, 1995-2003
Dominica 1995 1996 1997 1998 1999 2000 2001 2002 2003 1995-2003
Barbados 0.52 0.44 0.84 .. 0.68 0.45 0.47 0.60 0.45 0.54
Belize 0.22 0.15 0.25 .. 0.07 0.00 0.00 0.00 1.49 0.24
Guyana 1.02 0.77 0.99 .. 1.34 1.35 1.37 1.33 1.13 1.14
Jamaica 0.91 1.39 1.28 .. 1.25 1.26 1.10 1.05 1.05 1.18
Trinidad & Tobago 1.76 0.97 0.86 .. 0.96 0.94 0.99 1.03 1.62 1.07
Grenada 1995 1996 1997 1998 1999 2000 2001 2002 2003 1995-2003
Barbados 2.04 0.84 1.67 1.27 1.24 0.73 0.81 1.25 0.60 1.06
Belize 0.00 0.00 0.00 0.00 0.00 0.00 0.03 0.18 0.40 0.07
Guyana 0.20 0.29 0.33 0.20 0.14 0.10 0.14 0.32 0.29 0.22
Jamaica 0.15 0.13 0.06 0.18 0.28 0.12 0.13 0.12 0.13 0.14
Trinidad & Tobago 1.03 0.74 1.72 1.59 1.02 1.52 3.23 2.70 3.36 2.00
St. Kitts & Nevis 1995 1996 1997 1998 1999 2000 2001 2002 2003 1995-2003
Barbados 0.80 0.48 0.43 .. 0.40 0.67 0.24 1.05 0.52 0.59
Belize 0.00 0.00 0.00 .. 0.00 0.31 0.00 0.00 0.00 0.07
Guyana 0.41 2.01 0.71 .. 0.21 0.09 0.00 0.00 0.05 0.52
Jamaica 0.02 0.13 0.05 .. 0.08 0.02 0.01 0.03 0.09 0.05
Trinidad & Tobago 0.44 2.24 0.48 .. 0.37 3.45 1.14 1.11 1.10 1.64
St. Lucia 1995 1996 1997 1998 1999 2000 2001 2002 2003 1995-2003
Barbados 1.33 1.28 1.69 1.33 2.38 2.37 2.68 1.62 0.86 1.57
Belize 0.56 0.84 1.22 1.06 1.13 1.09 0.50 0.27 0.37 0.62
Guyana 0.18 0.29 0.53 0.36 0.34 0.35 0.35 0.16 0.15 0.26
Jamaica 0.05 0.00 0.03 0.01 0.00 0.01 0.01 0.04 0.04 0.03
Trinidad & Tobago 2.68 2.25 3.03 2.72 1.36 0.58 0.94 4.90 6.57 3.04
St. Vincent & Gren 1995 1996 1997 1998 1999 2000 2001 2002 2003 1995-2003
Barbados 0.85 1.08 0.83 0.80 1.37 0.92 1.12 1.61 1.10 1.03
Belize 0.00 0.00 0.07 0.00 0.00 0.00 0.00 0.00 0.00 0.01
Guyana 0.14 0.18 0.24 0.20 0.25 0.16 0.14 0.11 0.07 0.17
Jamaica 0.09 0.12 0.17 0.19 0.16 0.18 0.21 0.23 0.13 0.16
Trinidad & Tobago 2.75 2.34 1.71 2.11 1.58 1.97 3.21 2.48 3.61 2.32
70
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OECS Report-Assessment of Trade Performance and Competitiveness

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OECS Report-Assessment of Trade Performance and Competitiveness

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An Assessment of Trade Performance and

Competitiveness of OECS Countries

October 28, 2005

Prepared by Christopher Vignoles

for the Caribbean Regional Negotiating Machinery (CRNM)

II. The Importance of Trade ..................................................................................................... 2

III. Trade in Services................................................................................................................... 4

A. Importance of Services Trade ............................................................................................. 4

C. Travel Services – measuring tourism’s competitiveness .................................................... 7

D. Commercial and Transportation Services......................................................................... 12

E. The Provision of Services via Modes 3 and 4 .................................................................. 14

F. Evaluating Services Trade ................................................................................................ 16

IV. Merchandise Trade............................................................................................................. 18

(i) Growth and patterns in the direction of trade ............................................................... 18

B. Competitiveness, Specialization and Complementarity ................................................... 23

(i) Real effective exchange rate ......................................................................................... 24

V. Competitiveness through Cost Structures ........................................................................ 33

A. Inputs and Factors of Production ...................................................................................... 33

(i) Labor ............................................................................................................................. 33

(i) Transport ....................................................................................................................... 36

VI. Trade and Integration: A Strategy for Growth ............................................................... 39

A. Exports and Growth .......................................................................................................... 39

(i) Challenges in scale, cost and preference erosion.......................................................... 39

B. A Strategy for Competitiveness ....................................................................................... 41

(i) Unilateral action............................................................................................................ 42

Figure 2.1 Export Growth Performance, 1990-2003

A. Importance of Services Trade

Figure 3.2 OECS: Services Trade, 1993-2003

(i) Tourism arrivals – stopover visitors and cruise ship passengers

(ii) Tourism visitor expenditures

(iii) Price competitiveness

Figure 3.4 OECS: Real Exchange Rate (Tourism-based), 1990-2003

(iv) Tourism competitiveness monitor

The Bahamas … … 69 (27) 51 (91) 77 (59) 63 (61) 72 (37) 58 (69) 65

Costa Rica 55 (56) 72 (17) 55 (83) 77 (58) 60 (66) 52 (91) 54 (79) 61

Source: WTTC Competitiveness Monitor (2004).

(v) The tourism satellite account

D. Commercial and Transportation Services

Figure 3.5 FDI Inflows into Tourism Sectors, 1997-2003

(i) Growth and patterns in the direction of trade

Figure 4.1 OECS: Merchandise Trade, 1993-2003

300 Rest of World

Figure 4.2 OECS Merchandise Exports by Destination, 1993-2003

(ii) Composition of trade by sectors

Figure 4.3 OECS: Sector Composition of Exports, 1993-2003

Analysis of the sub-region’s export structure shows an improvement in the concentration of

Source: Author using UN-COMTRADE.

B. Competitiveness, Specialization and Complementarity

In this section, measures of international competitiveness, export specialization and trade

Figure 4.4 OECS: Real Effective Exchange Rate (CPI-based), 1990-2003

(ii) Market access and penetration

1993 1999 2003

Source: Author using UN-COMTRADE.

(iii) International competitiveness of exports

Figure 4.5 Competitiveness of OECS Exports, 1997-2003

UNDERACHIEVERS 12% CHAMPIONS

soap elect. machinery

sugar rice flour of wheat

DECLINING SECTORS ACHIEVERS IN ADVERSITY

(iv) Export specialization

Food/Tobacco 9 (034,036,046,054,075, 6 (036,046,057,075, 7 (034,042,054,072, 5 (022,025,046,

Food/Tobacco 1 (042) 3 (042,054,122) 1 (061) 1 (034)

Crude Materials 1 (554) 2 (288,592) 0 0