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. B. C. (i) Importance of Services Trade ............................................................................................. 4 Trade Performance.............................................................................................................. 5 Travel Services – measuring tourism’s competitiveness .................................................... 7 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. E. F. Commercial and Transportation Services......................................................................... 12 The Provision of Services via Modes 3 and 4 .................................................................. 14 Evaluating Services Trade ................................................................................................ 16

IV. Merchandise Trade............................................................................................................. 18 A. (i) Trade Performance............................................................................................................ 18 Growth and patterns in the direction of trade ............................................................... 18

(ii) Composition of trade by sectors ................................................................................... 20 (iii) Export concentration and principal products ................................................................ 22 B. (i) Competitiveness, Specialization and Complementarity ................................................... 23 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. V. A. (i)

Evaluating Merchandise Trade ......................................................................................... 31 Competitiveness through Cost Structures ........................................................................ 33 Inputs and Factors of Production ...................................................................................... 33 Labor ............................................................................................................................. 33

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

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

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

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.

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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

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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).

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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 10.5 Growth Rate (%) 7.0 3.5 0.0 -3.5 -7.0 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. OECS
1990-1995 1995-2000 2000-2003

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.

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IMF (2005b).

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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 threequarters 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.

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.

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Figure 3.1 OECS Services Exports by Area, 1993-2003
100%

80% Share of total .

60%

40%

20%

0% 1993 1994 Travel 1995 1996 1997 1998 1999 2000 2001 2002 2003 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 subregion’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

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World Bank (2005).

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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 US$ Millions 900 700 500 300 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Source: See Tables 2-4 in the Statistical Appendix. Imports Exports

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 onethird 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 healthrelated 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 19932003. 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.

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For more detailed information on offshore education and health-related services see World Bank (2005). 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).

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Figure 3.3 OECS Stopover Arrivals by Origin, 1993-2003
300

250 Visitors ('000)

200

150

100 1993 1994 1995 1996 1997 1998 Europe 1999 2000 2001 2002 2003 United States Caribbean

Source: See Table 5 in the Statistical Appendix.

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 intraregional 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

REER Index

105

100

95 1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Note: 1990 = 100; decrease = depreciation.

Source: IMF (2004a).

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UN-ECLAC (2004). For more information on the tourism-based REER see IMF (2004a).

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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.

IMF (2003a, 2004a). 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.
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Table 3.1 Tourism Competitiveness Monitor, 2004
Price InfraEnvironTechHuman OpenComp. structure ment nology Resources ness Social Index Rank Index Rank Index Rank Index Rank Index Rank Index Rank Index Rank Antigua & Barbuda 6 (118) … … 57 (73) 90 (45) 44 (99) 86 (5) 69 (38) Dominica 37 (84) … … 40 (131) 67 (76) 37 (106) 47 (101) 65 (51) Grenada … … 81 (6) 48 (95) 62 (82) 55 (82) 48 (96) 69 (41) St. Kitts & Nevis 5 (120) 73 (16) 66 (49) 70 (68) 96 (9) 70 (44) 69 (37) St. Lucia 12 (112) … … 65 (51) 60 (83) 63 (61) 59 (73) 74 (28) … 79 (8) 47 (98) 54 (90) 39 (105) 67 (56) 64 (54) St. Vincent & Grens … OECS Avg. 15 78 54 67 56 63 68 The Bahamas Barbados Jamaica Trinidad & Tobago Other CARICOM Costa Rica Cuba Dominican Rep. Puerto Rico Hispanic Carib. … 27 18 19 21 55 … 58 … 57 … (98) (109) (108) (56) … (51) … 69 87 63 69 72 72 63 54 … 63 (27) (3) (39) (24) (17) (40) (57) … 51 43 19 16 32 55 41 42 88 57 (91) (121) (164) (170) (83) (130) (127) (9) 77 79 72 66 74 77 57 42 85 65 (59) (56) (64) (78) (58) (87) (106) (50) 63 84 51 60 65 60 72 49 … 60 (61) (25) (90) (66) (66) (43) (96) … 72 73 79 52 69 52 … 63 47 54 (37) (33) (17) (92) (91) … (65) (102) 58 67 64 67 64 54 60 42 … 52 (69) (44) (52) (43) (79) (63) (107) … Tourism Index Avg. 59 49 61 64 56 58 65 66 52 50 61 59 50 …

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

For TSA data see WTTC (2004). 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).
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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 20

WTO (2001). IMF (2005c). 21 World Bank (2005).

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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 40 30 20 10 0 1997 Grenada 1998 1999 2000 St. Lucia 2001 2002 St. Vincent & Grens. 2003 St. Kitts & Nevis . US$ Millions

Source: See Table 9 in the Statistical Appendix.

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 23

FIAS (2004). 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).

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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 intraregional 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 &

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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.

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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 1,800 . 1,500 US$ Millions 1,200 900 600 300 0 1993 Exports Imports

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.

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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 . US$ Millions 250 200 150 100 50 0 1993 OECS CARICOM (non-OECS) 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Rest of World EU US / Canada

Source: See Table 10 in the Statistical Appendix.

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 intraregional 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 intraregional 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.

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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 Other Food & Agriculture Manufactures Source: See Table 13 in the Statistical Appendix. Fuels & Metals

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 threequarters of its fuel needs from CARICOM member states (mostly Trinidad & Tobago).

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(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 fuelrelated product (see Table 4.1).28 Table 4.1 OECS: Top 20 Products Exported to the World and CARICOM, 2000-2003
Code 0573 7721 07524 5541 04601 1123 5530 77884 7599 77323 0611 33421 05481 79321 7810 11102 7643 04221 7723 08199 World Share Acc. Product Description (%) Share Bananas, fresh or dried 17.8 17.8 Elect's such as switches & relays 9.1 26.9 Nutmeg, mace and cardamoms 5.1 32.0 Soap; organic surface-active product 4.5 36.5 Flour of wheat or of meslin 3.6 40.1 Beer made from malt 3.0 43.1 Perfumery, cosmetics, etc 2.5 45.6 Elect. capacitors & condensers 2.2 47.8 Parts for office machines 2.2 50.0 Electrical insulators of ceramic 2.1 52.1 Sugars, beet and cane 1.9 54.0 Kerosene 1.8 55.8 Manioc, arrowroot, salep 1.6 57.4 Yachts & other vessels for pleasure 1.6 59.0 Passenger motor cars, for transport 1.3 60.2 Lemonade & flavoured waters 1.2 61.5 Radiotelegraphic & radiotelephonic 1.2 62.7 Rice, semi/wholly milled 1.2 63.8 Resistors, fixed or variable 1.1 64.9 Sweetened forage 0.9 65.8 Top 20 Exports 65.8 Total (1,077 products) 100.0 CARICOM Share Acc. Code Product Description (%) Share 5541 Soap; organic surface-active product 11.2 11.2 04601 Flour of wheat or of meslin 10.3 21.4 1123 Beer made from malt 8.4 29.8 5530 Perfumery, cosmetics, etc 7.3 37.2 33421 Kerosene 4.9 42.1 0573 Bananas, fresh or dried 3.5 45.6 11102 Lemonade & flavoured waters 3.0 48.6 04221 Rice, semi/wholly milled 3.0 51.5 05481 Manioc, arrowroot, salep 2.8 54.3 08199 Sweetened forage 2.5 56.8 7810 Passenger motor cars, for transport 2.3 59.1 64243 Toilet paper in rolls 2.2 61.4 53342 Other paints & enamels 2.1 63.5 5542 Organic surface-active agents, n.e.s. 1.8 65.4 59141 Disinfectants packed for sale 1.8 67.2 67491 Other sheets & plates 1.8 69.0 05797 Avocados, mangoes, guavas 1.4 70.4 04212 Rice, husked 1.1 71.5 72346 Other excavating & extracting eq't 0.8 72.4 81242 Lamps & lighting fittings 0.8 73.2 Top 20 Exports 73.2 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

Note: seven of the ten manufactured exports and kerosene were not in the Top 20 at the beginning of the decade. 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.
29

28

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 lowtechnology 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

See Lall (2000) for more detailed information on the classification of exports by technology content. 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.
31

30

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(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).

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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 Market Share > 25% 3 flour of wheat, vegetable oils, soap 2 Market Share > 10% fruit & nuts (bananas), non-alcoholic beverages

1999 1 flour of wheat

2003 2 flour of wheat, scrap metal

2 fruit & nuts (bananas), soap

6 fresh fish, crustaceans & molluscs, fruit & nuts (bananas), alcoholic beverages stone & sand, and soap

Source: Author using UN-COMTRADE.

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 demandside 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 . soap Avg. Ann. Growth in World Imports fruit (bananas) 6% 12% elect. switches CHAMPIONS elect. machinery

alc. beverages spices 0% 20% flour of wheat 40% 60%

0% -40% -20% sugar rice

-6%

DECLINING SECTORS -12%

ACHIEVERS IN ADVERSITY

Avg. Ann. Increase in OECS World Market Share Source: See Table 16 in the Statistical Appendix.

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 threedigit 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).

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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 Increase ESI Total Food/Tobacco Crude Materials Manufactures Others No Change Total Food/Tobacco Crude Materials Manufactures Others Decrease ESI Total Food/Tobacco Crude Materials Manufactures Others 8 4 0 3 1 (642,716,845) (941) World No ESI Total of which lost: Food/Tobacco Crude Materials Manufactures Others 190 10 0 2 8 0 (269,424) (696,697,843,844, 846,848,893,897) 166 12 1 1 8 2 (058) (424) (641,681,697,723, 775,831,881,899) (941,961) 148 1 0 0 1 0 (893) 154 19 3 3 (036,057,072) (277,282,553) (057,061,072,091) 5 2 2 1 0 CARICOM (091,111) (533,554) (642) 1 1 0 0 0 European Union (057) 13 2 3 7 1 (054,098) (269,554,592) (656,692,716,771, 793,845,847) (941) United States 2 1 1 0 0 (042) (554) 5 3 2 0 0 (042,054,122) (288,592) 1 1 0 0 0 (061) 2 1 0 1 0 (764) (034) No. 22 9 (034,036,046,054,075, 081,098,111,112) 6 (273,533,551,553, 591,592) 7 (691,723,759,772,773, 778,793) 0 World Products 192 No. 16 6 4 6 0 (036,046,057,075, 081,112) (273,282,553,591) (674,736,763,812, 844,846) CARICOM Products 166 European Union 189 No. 16 7 3 6 0 (034,042,054,072, (075,098,111) (273,551,562) Products No. 20 5 3 (022,025,046, 075,111) (263,273,551) United States Products

(759,763,772,773, 11 (621,657,723,727,759,772, 793,892) 773,778,786,881,892) 1 (951)

13 (658,694,696,742,744,842, 843,844,846,848,884,893,897) 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.

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(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 OECS CARICOM 1.4 1.6 1.7 1.5 1.8 1.5 2.2 1.9 2.0 2.0 1.9 United States 0.8 0.8 0.7 0.7 0.7 0.8 0.7 0.8 0.8 0.8 0.8 European Union 1.2 1.2 1.2 1.2 1.1 1.1 1.1 1.1 1.1 1.1 1.1 Dominica CARICOM United States European Union CARICOM United States European Union CARICOM United States European Union CARICOM United States European Union CARICOM United States European Union 1.3 0.6 1.3 1.5 1.0 1.1 2.1 0.8 1.0 0.7 1.0 1.2 2.7 0.6 1.2 1.7 0.6 1.4 1.7 0.9 1.1 2.5 0.7 0.9 0.8 0.9 1.3 2.7 0.6 1.1 1.9 0.5 1.4 1.8 0.8 1.1 2.6 0.7 0.9 0.9 0.9 1.3 2.6 0.6 1.1 1.9 0.5 1.4 1.6 0.8 1.0 2.6 0.7 0.9 0.6 0.8 1.3 2.0 0.6 1.1 1.9 0.5 1.4 1.8 0.9 1.0 2.3 0.8 0.9 0.8 0.8 1.3 2.7 0.5 1.0 .. .. .. 1.6 1.0 1.0 .. .. .. 0.8 0.8 1.3 2.3 0.6 1.1 2.3 0.6 1.3 2.8 0.9 0.9 1.7 0.8 0.9 1.1 0.9 1.3 3.3 0.6 1.1 2.3 0.6 1.3 1.5 0.9 0.9 1.7 0.8 0.9 1.2 1.0 1.2 2.6 0.6 1.1 2.1 0.6 1.3 1.7 0.9 0.9 1.4 0.7 0.9 1.0 1.0 1.2 3.6 0.6 1.1 2.3 0.6 1.3 2.4 0.8 1.0 1.0 0.8 0.9 1.4 0.9 1.1 2.9 0.7 1.2 1.9 0.6 1.3 2.8 0.9 1.0 1.1 0.7 0.9 1.4 1.0 1.1 3.0 0.7 1.2

93-98 1.60 0.75 1.18 1.72 0.56 1.36 1.67 0.89 1.05 2.42 0.76 0.91 0.79 0.87 1.27 2.49 0.60 1.10

98-03 1.92 0.77 1.11 2.16 0.56 1.30 2.13 0.89 0.96 1.40 0.76 0.90 1.17 0.94 1.21 2.95 0.64 1.12

Grenada

St. Kitts & Nevis

St. Lucia

St. Vincent & the Grens.

Note: OECS excludes Antigua & Barbuda and Montserrat. Source: Author using UN-COMTRADE.

Table 4.4 Trade Complementarity Index, 1993-2003

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.

38

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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.

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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.

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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 exportimport 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, primelending 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 41

World Bank (2005). IMF (2005a). 42 World Bank (2005) and IMF (2005a).

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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
Lending Rates (%) Antigua & Barbuda Dominica Grenada Montserrat St. Kitts & Nevis St. Lucia St. Vincent & Grens. OECS Source: ECCB (2005). 1995 10.0 - 11.5 9.0 - 10.5 9.5 - 10.5 10.0 - 10.5 9.5 - 12.0 9.0 - 10.0 9.5 - 11.0 9.0 - 12.0 Prime Rates 2000 10.0 - 11.5 9.5 - 10.5 9.5 - 10.5 9.5 - 10.5 9.5 - 11.0 9.5 - 10.5 9.5 - 11.0 9.5 - 11.5 2004 10.0 - 11.5 8.5 - 10.5 8.5 - 9.5 9.5 - 9.5 8.5 - 9.0 9.5 - 10.0 9.0 - 11.0 8.5 - 11.5 1995 7.0 - 24.0 7.5 - 19.0 7.0 - 16.0 9.0 - 27.6 9.0 - 21.6 8.5 - 23.0 7.0 - 16.5 7.0 - 27.6 Other Rates 2000 6.5 - 24.0 7.5 - 20.8 5.8 - 16.0 9.0 - 27.6 8.5 - 19.9 7.5 - 23.0 5.0 - 16.5 5.0 - 27.6 2004 3.0 - 23.6 7.5 - 20.0 3.0 - 16.0 9.0 - 19.5 7.5 - 22.0 6.0 - 23.5 3.0 - 21.6 3.0 - 23.6

(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 servicesrelated 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 45

World Bank (2005). 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 5 0
a Ba rb ad os a na da m e itt s G re ns . ai ca vg ) ep . om .R Tr Lu ci Su rin a (a om re m To b. & in . in ic K St .

EC S

D

&

St .

G

Ja

in .

46

Ibid.

St .

V

Source: World Bank (2005).

O

37

D

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 48

FIAS (2004). 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 51

IMF (2005a). 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 commoditybased 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 hightechnology 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 55

Aubert (2004). 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 58

This draws from a paper on Economic Partnership Agreements; see Hinkle et al (2005). IDB (2005).

44

STATISTICAL APPENDIX

Table 1. Table 2. Table 3. Table 4. Table 5. Table 6. Table 7. Table 8. Table 9. Table 10. Table 11. Table 12. Table 13. Table 14. Table 15. Table 16. Table 17.

CARICOM Member States: Composition of Exports, 2002 Services Exports by Area, 1993-2003 Services Imports by Area, 1993-2003 Balance of Services Trade by Area, 1993-2003 OECS Tourism Statistics, 1993-2003 Caribbean Tourist Arrivals by Destination, 1993-2003 Caribbean Cruise Passenger Arrivals by Destination, 1993-2003 OECS Tourism Satellite Account, 1993-2003 OECS: Foreign Direct Investment Inflows by Sector, 1997-2003 Merchandise Exports by Destination, 1993-2003 Merchandise Imports by Origin, 1993-2003 Intra-regional Merchandise Trade, 1993-2003 OECS: Merchandise Trade by Sector, 1993-2003 Top 20 Exports to the World, 1993-1996 and 2000-2003 Top 20 Exports to CARICOM, 1993-1996 and 2000-2003 OECS: International Competitiveness of Exports, 1997-2003 OECS Member States: Trade Intensity Index, 1995-2003

45

Table 1. CARICOM Member States: Composition of Exports, 2002

Country Antigua & Barbuda Dominica Grenada Montserrat St. Kitts & Nevis St. Lucia St. Vincent & the Grens. OECS

Share of Total Exports (%) Goods Services 8.8 91.2 36.7 63.3 30.6 69.4 16.2 83.8 41.6 58.4 12.8 87.2 22.9 77.1 20.3 79.7

The Bahamas Barbados Belize Guyana Haiti Jamaica Suriname Trinidad & Tobago

28.1 19.5 62.8 74.2 66.9 40.5 90.6 87.2

71.9 80.5 37.2 25.8 33.1 59.5 9.4 12.8

CARICOM CARICOM (-) T&T

52.8 38.3

47.2 61.7

Source: IDB INTAL (2005).

46

Table 2. Services Exports by Area, 1993-2003
Country Antigua & Barbuda Sector Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total 1993 65 277 2 29 4 377 6 29 3 9 1 49 4 64 1 18 1 88 2 18 1 3 .. 24 4 70 1 8 1 83 13 178 3 10 1 203 4 44 1 11 2 62 98 680 12 88 9 886 1994 66 293 2 29 1 391 5 32 2 11 0 52 5 78 1 17 1 102 2 20 1 4 .. 27 5 77 1 9 1 92 14 207 3 12 1 238 4 44 1 11 3 63 101 751 11 93 7 964 1995 67 247 2 32 0 348 6 42 2 12 0 61 4 76 1 17 1 99 2 17 1 4 .. 24 5 63 2 10 2 82 14 230 3 17 1 265 5 53 1 13 2 74 103 728 12 105 7 954 1996 67 258 4 35 0 364 7 44 3 13 2 69 5 79 1 21 1 107 3 8 0 5 .. 16 7 68 1 12 1 89 12 237 4 13 1 267 5 64 1 26 1 97 106 758 14 125 7 1,008 1997 73 278 4 47 3 405 7 48 3 21 4 83 5 78 1 21 2 106 2 5 0 7 .. 14 7 72 2 12 2 95 14 253 4 16 1 288 6 69 1 22 1 99 114 803 13 148 13 1,091 1998 66 282 20 56 5 429 7 47 3 28 4 88 4 83 1 28 4 120 0 6 0 7 .. 13 8 71 3 16 3 101 17 283 3 15 1 320 10 73 1 22 1 107 112 845 32 171 17 1,177 1999 60 290 30 50 9 439 7 51 3 36 4 101 6 88 2 45 3 144 1 8 0 11 .. 20 8 69 1 20 3 101 11 263 3 28 1 306 10 77 1 36 2 126 103 846 41 225 22 1,237 2000 66 291 16 36 8 417 7 48 3 29 2 90 6 93 3 45 6 153 1 9 0 5 .. 15 11 58 3 23 3 99 12 279 4 25 1 321 11 75 2 36 2 126 114 853 32 198 24 1,220 2001 76 272 12 35 8 403 6 46 2 19 2 75 8 83 3 34 4 133 1 8 0 4 .. 13 11 62 2 20 4 99 17 237 5 23 1 283 10 80 2 38 2 131 129 788 27 172 21 1,138 2002 76 274 9 29 4 392 5 46 2 25 2 80 8 91 5 26 3 133 1 9 0 4 .. 14 10 56 2 18 4 91 16 215 4 22 1 258 10 83 2 40 2 137 126 774 24 164 16 1,104 2003 80 300 7 29 4 420 5 55 2 17 1 80 9 107 3 18 2 139 1 7 0 3 .. 11 9 74 2 18 4 107 17 288 4 17 1 327 10 83 2 34 2 131 131 914 21 135 14 1,215 93-03 17.4 69.8 2.4 9.3 1.0 100.0 8.2 58.9 3.3 26.6 2.7 100.0 4.8 69.6 1.8 21.8 2.2 100.0 8.4 60.2 2.1 29.3 .. 100.0 8.2 71.3 2.0 15.9 2.7 100.0 5.1 86.8 1.3 6.4 0.4 100.0 7.4 64.5 1.2 25.1 1.7 100.0 10.3 72.9 2.0 13.6 1.3 100.0 Share (%) 93-98 17.5 70.7 1.5 9.9 0.5 100.0 9.4 60.2 3.7 23.6 2.8 100.0 4.3 73.8 1.1 19.5 1.7 100.0 9.3 62.7 2.2 25.7 .. 100.0 6.6 77.7 1.9 12.3 1.7 100.0 5.3 87.8 1.2 5.3 0.4 100.0 6.8 68.9 1.1 20.9 2.0 100.0 10.4 75.1 1.5 12.0 1.0 100.0 98-03 17.0 68.4 3.7 9.4 1.5 100.0 7.2 56.9 3.0 29.9 2.8 100.0 5.0 66.4 2.3 23.7 2.6 100.0 5.8 54.7 1.8 37.7 .. 100.0 9.5 65.3 2.4 19.1 3.6 100.0 5.0 86.2 1.3 7.1 0.5 100.0 8.0 62.1 1.2 27.3 1.4 100.0 10.1 70.8 2.5 15.0 1.6 100.0 Avg Ann Growth (%) 93-03 93-98 98-03 2.1 0.3 3.9 0.8 0.4 1.2 11.0 53.6 -19.8 0.3 14.4 -12.2 0.4 5.2 -4.1 1.1 2.6 -0.4 -1.8 3.1 -6.5 6.6 10.1 3.2 -4.2 -3.0 -5.5 6.7 26.0 -9.7 -1.1 29.8 -24.6 5.2 12.7 -1.9 8.4 0.0 17.6 5.3 5.3 5.2 10.2 2.3 18.7 -0.1 9.2 -8.6 3.9 25.3 -13.8 4.7 6.4 3.0 -6.7 .. .. -9.0 -19.7 3.1 -6.5 -31.3 27.2 -2.3 15.2 -17.1 .. .. .. -7.5 -11.5 -3.3 8.4 14.9 2.4 0.6 0.3 0.8 6.9 28.3 -10.9 8.5 14.2 3.0 17.4 25.3 10.0 2.5 3.8 1.3 2.7 5.5 0.0 4.9 9.7 0.4 5.6 4.4 6.9 4.7 7.3 2.3 3.8 5.2 2.4 4.9 9.5 0.5 9.6 20.1 0.0 6.6 10.7 2.6 5.8 -1.5 13.6 12.1 15.0 9.2 -0.4 -3.1 2.3 7.7 11.5 4.0 2.9 3.0 5.6 4.4 3.9 3.2 2.7 4.4 21.5 14.2 13.4 5.9 3.2 1.6 -8.2 -4.6 -4.8 0.6

Dominica

Grenada

Montserrat

St. Kitts & Nevis

St. Lucia

St. Vincent & the Grenadines

OECS

Source: Author using IMF, WTO and ECCB data.

47

Table 3. Services Imports by Area, 1993-2003
Country Antigua & Barbuda Sector Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total 1993 50 23 14 36 5 128 17 5 3 8 2 36 19 4 4 8 5 41 6 3 1 2 1 11 17 5 4 18 2 46 43 20 7 15 5 90 19 5 4 16 1 45 171 65 37 103 21 397 1994 56 24 11 37 7 134 17 6 3 7 5 38 22 4 4 9 2 41 7 3 1 2 1 14 17 6 6 14 2 45 41 23 7 27 6 104 18 6 3 22 5 55 177 71 35 120 29 431 1995 56 23 16 45 8 148 17 6 4 13 4 44 21 5 3 8 2 38 7 4 1 2 1 15 21 5 6 20 4 55 42 25 7 43 6 124 20 7 4 23 2 55 183 74 41 154 26 479 1996 56 26 19 51 5 157 20 7 4 12 4 47 26 5 3 10 2 46 7 4 1 2 4 17 23 5 6 23 3 61 42 29 7 35 10 122 20 8 4 23 3 58 194 83 46 155 32 510 1997 58 27 16 59 4 164 23 7 4 14 5 54 28 5 5 15 3 56 4 1 1 4 3 13 26 6 6 24 4 65 44 29 8 32 8 122 23 7 4 38 4 76 205 84 46 186 31 551 1998 60 29 16 60 3 169 20 8 5 15 8 56 32 6 6 20 6 70 3 1 0 4 12 21 27 6 6 19 4 62 42 31 8 40 11 132 27 8 5 34 5 79 212 89 46 192 51 589 1999 62 30 27 52 6 177 21 9 4 20 5 59 30 7 7 32 4 80 4 1 1 7 9 22 29 7 7 39 4 85 45 33 8 42 8 136 29 9 5 19 4 66 219 97 59 210 40 625 2000 54 31 16 44 10 154 22 9 5 12 5 53 34 8 8 33 4 87 4 2 1 5 8 19 32 9 9 23 4 76 46 33 9 29 7 124 25 9 5 17 4 60 217 101 51 164 41 573 2001 55 32 28 48 10 172 20 9 4 13 3 50 33 8 8 29 4 82 3 2 1 5 13 24 31 8 8 23 4 75 42 32 8 26 5 113 26 10 5 15 3 60 210 100 62 161 43 576 2002 56 33 31 46 8 175 18 9 5 17 4 54 30 8 8 38 4 88 4 2 1 4 12 23 32 8 10 25 5 80 44 33 8 34 6 125 26 10 6 15 3 60 212 103 68 180 42 604 2003 61 35 31 51 8 186 19 9 4 8 4 44 39 8 9 22 6 84 5 2 1 5 5 18 33 8 9 25 6 81 54 35 11 31 5 136 29 11 6 16 3 65 240 108 72 157 36 613 93-03 35.4 17.7 12.7 29.9 4.2 100.0 40.0 15.8 8.8 26.0 9.4 100.0 43.9 9.4 9.3 31.4 6.0 100.0 26.8 12.6 4.3 21.5 34.8 100.0 39.1 10.0 10.3 34.8 5.8 100.0 36.6 24.3 6.6 26.7 5.8 100.0 38.5 13.2 7.5 35.2 5.6 100.0 37.6 16.4 9.4 30.0 6.6 100.0 Share (%) 93-98 37.4 16.9 10.2 31.9 3.5 100.0 41.4 14.2 8.8 25.1 10.6 100.0 50.2 9.9 9.1 23.9 7.0 100.0 36.1 17.5 5.8 17.1 23.6 100.0 38.8 10.1 9.9 35.4 5.8 100.0 36.7 22.6 6.4 27.7 6.6 100.0 34.3 10.8 6.5 42.5 5.8 100.0 38.6 15.8 8.5 30.8 6.4 100.0 98-03 33.8 18.3 14.4 29.1 4.4 100.0 38.0 17.1 8.7 26.9 9.3 100.0 40.5 8.9 9.4 35.5 5.7 100.0 18.2 8.0 2.8 24.1 46.9 100.0 39.8 9.9 10.5 33.8 6.0 100.0 35.6 25.8 6.7 26.4 5.5 100.0 41.5 14.7 8.2 29.9 5.6 100.0 36.6 16.7 10.0 29.7 7.1 100.0 Avg Ann Growth (%) 93-03 93-98 98-03 1.9 3.7 0.2 4.1 4.3 3.9 8.2 2.3 14.5 3.6 11.2 -3.4 5.8 -5.1 18.0 3.8 5.7 1.9 1.0 2.9 -1.0 6.1 10.7 1.8 3.2 9.2 -2.6 -0.2 13.0 -11.9 5.0 28.0 -13.9 2.1 9.4 -4.7 7.3 11.0 3.8 6.9 6.9 7.0 7.3 7.3 7.3 10.5 19.7 2.1 0.8 1.7 -0.2 7.4 11.2 3.6 -1.2 -11.4 10.1 -2.6 -12.6 8.7 -0.9 -8.3 7.2 11.2 14.7 7.8 25.2 87.1 -16.2 4.7 12.8 -2.7 6.9 9.5 4.4 4.3 3.2 5.3 8.8 8.3 9.2 3.2 1.0 5.4 11.5 17.7 5.6 5.7 6.1 5.4 2.3 -0.6 5.2 6.0 9.7 2.3 4.8 2.9 6.6 7.3 20.9 -4.8 -0.7 18.0 -16.5 4.2 8.0 0.5 4.6 8.0 1.3 8.6 9.3 8.0 5.2 4.7 5.6 -0.3 16.3 -14.6 6.4 28.3 -11.7 3.8 12.0 -3.9 3.4 5.2 6.8 4.3 5.3 4.4 4.3 6.6 4.5 13.2 19.0 8.2 2.6 3.9 9.2 -3.9 -6.8 0.8

Dominica

Grenada

Montserrat

St. Kitts & Nevis

St. Lucia

St. Vincent & the Grenadines

OECS

Source: Author using IMF, WTO and ECCB data.

48

Table 4. Balance of Services Trade by Area, 1993-2003
Country Antigua & Barbuda Sector Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total Transportation Travel Insurance Other Business Government Total 1993 15 254 -12 -7 -1 248 -11 24 0 1 -1 13 -15 60 -3 10 -4 46 -4 15 0 2 .. 13 -13 65 -3 -10 -1 37 -30 158 -4 -5 -4 113 -15 39 -3 -5 0 18 -73 615 -25 -15 -12 488 1994 10 269 -8 -9 -6 256 -12 26 -2 4 -4 14 -17 74 -3 8 -1 60 -5 17 0 2 .. 13 -12 71 -4 -6 -2 48 -27 184 -4 -15 -5 134 -14 38 -2 -11 -3 9 -76 680 -24 -27 -22 533 1995 11 224 -14 -13 -7 201 -11 36 -2 -1 -4 18 -17 71 -2 9 -1 61 -5 13 0 2 .. 9 -16 58 -4 -9 -2 27 -28 205 -4 -26 -5 141 -15 46 -3 -10 0 19 -80 654 -30 -48 -19 476 1996 11 232 -16 -16 -4 207 -13 37 -2 2 -2 22 -21 74 -3 11 -1 61 -4 4 0 3 .. -1 -16 63 -5 -12 -2 27 -30 208 -4 -21 -9 144 -15 56 -3 3 -2 38 -88 675 -32 -30 -25 498 1997 15 251 -13 -11 -1 241 -16 41 -2 7 -1 29 -23 73 -5 6 -1 50 -2 4 -1 3 .. 1 -19 66 -4 -12 -2 30 -30 224 -5 -16 -7 167 -17 62 -3 -15 -3 23 -91 719 -32 -38 -18 540 1998 6 253 4 -4 1 259 -13 39 -2 14 -4 33 -28 77 -5 8 -2 50 -3 5 0 3 .. -8 -19 65 -2 -4 -2 39 -25 252 -5 -25 -10 187 -17 66 -4 -12 -4 28 -100 756 -15 -20 -33 588 1999 -2 260 3 -2 3 262 -14 42 -2 17 -1 42 -24 81 -5 13 -1 64 -3 7 0 3 .. -2 -21 62 -5 -19 -1 16 -34 230 -5 -15 -7 170 -19 68 -4 17 -2 60 -116 749 -17 14 -18 611 2000 12 260 0 -8 -2 263 -15 39 -1 16 -3 37 -28 85 -5 12 2 65 -3 7 0 0 .. -4 -21 49 -5 -1 0 23 -34 246 -5 -4 -6 197 -14 66 -3 19 -2 66 -103 752 -19 35 -18 647 2001 21 240 -16 -13 -2 231 -14 37 -2 5 -2 25 -25 75 -5 4 0 51 -2 6 0 -1 .. -11 -20 54 -6 -3 0 24 -25 205 -3 -3 -4 170 -16 70 -3 23 -2 72 -81 688 -35 11 -22 562 2002 20 241 -22 -17 -4 217 -13 37 -3 8 -2 26 -22 83 -3 -12 -1 45 -3 7 0 -1 .. -9 -22 48 -7 -8 -1 11 -28 182 -4 -12 -4 134 -16 73 -4 25 -1 76 -86 671 -43 -16 -26 500 2003 19 265 -25 -21 -4 234 -14 46 -2 9 -3 37 -30 99 -5 -5 -4 55 -4 5 0 -3 .. -7 -24 66 -7 -7 -1 27 -37 253 -6 -15 -3 192 -19 72 -5 19 -1 66 -109 806 -51 -22 -22 602

Dominica

Grenada

Montserrat

St. Kitts & Nevis

St. Lucia

St. Vincent & the Grenadines

OECS

49

Table 5. OECS Tourism Statistics, 1993-2003
Shares (%) 93-03 93-98 98-03 40 43 38 30 31 26 13 60 100 31 31 24 14 57 100 30 31 27 12 62 100 Avg Annual Growth (%) 93-03 93-98 98-03 2.0 2.2 1.9 0.9 1.9 5.2 -1.3 4.7 3.5 0.9 2.4 4.3 1.0 11.1 7.2 0.9 1.3 6.1 -3.5 -1.4 -0.1

Arrivals ('000) Tourist Arrivals United States Europe Caribbean Other Countries Cruise Ship Passengers Total Visitors

1993 751 244 224 171 112 833

1994 817 264 255 182 116 917

1995 778 253 234 186 105

1996 786 236 244 196 111

1997 824 241 260 201 122

1998 836 254 253 211 118

1999 861 254 276 218 113

2000 861 251 285 214 111

2001 813 245 244 221 104

2002 837 259 236 252 90

2003 918 267 270 283 99

988 1,060 1,200 1,408 1,312 1,544 1,582 1,206 1,314

1,584 1,734 1,766 1,847 2,024 2,244 2,173 2,405 2,395 2,043 2,232

Memorandum: Cruise Ship Calls (#) Visitor Exp. (US$ mn)

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Average (%) 93-03 93-98 98-03 1,551 853 1,550 794 1,547 922

Avg Annual Growth (%) 93-03 93-98 98-03 -0.8 3.4 -2.0 5.2 0.5 1.6

1,682 1,636 1,549 1,504 1,405 1,521 1,529 1,710 1,526 1,436 1,558 706 752 732 763 901 909 942 964 873 860 985

Source: Caribbean Tourism Organization.

50

Table 6. Caribbean Tourist Arrivals by Destination, 1993-2003
Avg Annual Growth (%) 93-03 93-98 98-03 1.4 1.9 0.9 2.0 2.2 1.9 1.5 1.5 1.4 0.4 3.0 -2.1 5.6 0.0 4.3 1.1 2.8 6.5 0.1 8.7 0.9 3.3 4.8 -0.1 0.2 1.3 2.2

Arrivals ('000) Commonwealth OECS Other CARICOM Other Caribbean Hispanic Caribbean Dutch Caribbean French Caribbean US Territories Caribbean Total

1993 5,490 751 3,746 994 4,368 1,377 819 3,466 15,520

1994 5,745 817 3,847 1,081 4,068 1,475 975 3,554 15,816

1995 5,735 778 3,872 1,085 4,415 1,401 1,097 3,594 16,242

1996 5,853 786 3,937 1,131 4,967 1,303 1,102 3,464 16,689

1997 5,956 824 4,038 1,093 5,662 1,372 1,173 3,757 17,920

1998 6,031 836 4,043 1,153 5,972 1,385 1,242 3,633 18,264

1999 6,166 861 4,155 1,150 6,649 1,406 1,275 3,622 19,119

2000 6,332 861 4,308 1,163 7,232 1,414 1,333 4,012 20,323

2001 6,129 813 4,195 1,121 6,972 1,368 1,234 3,832 19,534

2002 6,069 837 4,166 1,066 6,650 1,314 1,212 3,754 19,000

2003 6,292 918 4,335 1,039 7,555 1,376 1,253 3,885 20,361

Shares (%) Commonwealth OECS Other CARICOM Other Caribbean Hispanic Caribbean Dutch Caribbean French Caribbean US Territories Caribbean Total

1993 35.4 4.8 24.1 6.4 28.1 8.9 5.3 22.3 100.0

1994 36.3 5.2 24.3 6.8 25.7 9.3 6.2 22.5 100.0

1995 35.3 4.8 23.8 6.7 27.2 8.6 6.8 22.1 100.0

1996 35.1 4.7 23.6 6.8 29.8 7.8 6.6 20.8 100.0

1997 33.2 4.6 22.5 6.1 31.6 7.7 6.5 21.0 100.0

1998 33.0 4.6 22.1 6.3 32.7 7.6 6.8 19.9 100.0

1999 32.2 4.5 21.7 6.0 34.8 7.4 6.7 18.9 100.0

2000 31.2 4.2 21.2 5.7 35.6 7.0 6.6 19.7 100.0

2001 31.4 4.2 21.5 5.7 35.7 7.0 6.3 19.6 100.0

2002 31.9 4.4 21.9 5.6 35.0 6.9 6.4 19.8 100.0

2003 30.9 4.5 21.3 5.1 37.1 6.8 6.2 19.1 100.0

93-03 33.1 4.6 22.5 6.1 32.5 7.6 6.4 20.4 100.0

Shares (%) 93-98 34.7 4.8 23.4 6.5 29.3 8.3 6.4 21.4 100.0

98-03 31.7 4.4 21.6 5.7 35.2 7.1 6.5 19.5 100.0

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). Source: Caribbean Tourism Organization.

51

Table 7. Caribbean Cruise Passenger Arrivals by Destination, 1993-2003
Avg Annual Growth (%) 93-03 93-98 98-03 6.4 3.7 9.1 4.7 11.1 -1.4 5.3 0.4 10.5 10.7 6.8 14.9 14.9 6.3 -3.9 3.1 6.2 16.3 4.6 1.6 5.1 5.3 13.6 8.0 -9.1 1.0 7.2

Arrivals ('000) Commonwealth OECS Other CARICOM Other Caribbean Hispanic Caribbean Dutch Caribbean French Caribbean US Territories Caribbean Total

1993 4,823 833 3,144 846 772 1,112 691 2,228 9,626

1994 4,672 917 2,918 837 976 1,148 734 2,209 9,738

1995 4,652 988 2,691 973 939 1,041 847 2,172 9,651

1996 5,104 1,060 2,902 1,142 1,098 1,162 1,021 2,341 10,726

1997 5,600 1,200 3,246 1,153 1,359 1,420 857 2,846 12,082

1998 5,793 1,408 3,210 1,175 1,643 1,391 749 2,859 12,434

1999 6,243 1,312 3,519 1,412 1,587 1,140 633 2,551 12,155

2000 7,391 1,544 4,420 1,427 1,688 1,710 679 3,070 14,538

2001 7,587 1,582 4,407 1,597 1,804 1,696 564 3,242 14,892

2002 8,136 1,206 4,925 2,005 2,475 1,998 406 2,943 15,957

2003 8,956 1,314 5,293 2,349 3,107 2,047 464 3,010 17,584

Shares (%) Commonwealth OECS Other CARICOM Other Caribbean Hispanic Caribbean Dutch Caribbean French Caribbean US Territories Caribbean Total

1993 50.1 8.7 32.7 8.8 8.0 11.5 7.2 23.1 100.0

1994 48.0 9.4 30.0 8.6 10.0 11.8 7.5 22.7 100.0

1995 48.2 10.2 27.9 10.1 9.7 10.8 8.8 22.5 100.0

1996 47.6 9.9 27.1 10.6 10.2 10.8 9.5 21.8 100.0

1997 46.3 9.9 26.9 9.5 11.2 11.8 7.1 23.6 100.0

1998 46.6 11.3 25.8 9.4 13.2 11.2 6.0 23.0 100.0

1999 51.4 10.8 29.0 11.6 13.1 9.4 5.2 21.0 100.0

2000 50.8 10.6 30.4 9.8 11.6 11.8 4.7 21.1 100.0

2001 50.9 10.6 29.6 10.7 12.1 11.4 3.8 21.8 100.0

2002 51.0 7.6 30.9 12.6 15.5 12.5 2.5 18.4 100.0

2003 50.9 7.5 30.1 13.4 17.7 11.6 2.6 17.1 100.0

93-03 49.5 9.6 29.2 10.7 12.5 11.4 5.5 21.1 100.0

Shares (%) 93-98 47.7 10.0 28.2 9.5 10.6 11.3 7.6 22.8 100.0

98-03 50.4 9.6 29.4 11.4 14.1 11.4 4.0 20.2 100.0

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). Source: Caribbean Tourism Organization.

52

Table 8. OECS Tourism Satellite Account, 1993-2003
Avg Annual Growth (%) 93-03 93-00 00-03 1.6 3.0 -1.6 5.0 5.8 4.0 0.5 5.6 4.8 -1.0 2.4 6.7 8.2 3.3 1.9 5.7 5.8 0.0 3.6 1.1 0.5 5.5 -2.6 5.4 2.6 -3.4 -0.3

US$ millions Travel & Tourism Consumption Personal Travel & Tourism Business Travel Government Expenditures Visitor Exports Collective Gov't Expenditures Capital Investment Exports (Non-Visitor) Travel & Tourism Demand

1993 965 124 42 23 776 45 245 11 1,266

1994 984 138 44 22 780 51 263 8 1,306

1995 986 140 50 22 774 50 322 10 1,368

1996 1,041 161 52 23 805 55 279 8 1,382

1997 1,101 170 57 24 851 56 313 7 1,478

1998 1,142 181 64 26 870 60 311 9 1,522

1999 1,216 195 68 28 926 63 337 10 1,626

2000 1,184 195 73 29 887 66 363 11 1,623

2001 1,109 189 69 32 820 72 371 9 1,561

2002 1,111 195 71 34 812 79 359 12 1,561

2003 1,128 202 74 34 819 77 391 10 1,607

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
US$ millions Tourism Manufacturing Transportation Construction Sporting Medical Financial Banking and Insurance Commercial Petroleum Education Agriculture Other Total FDI 1997 107.9 2.7 0.0 5.2 3.7 0.0 0.0 2.6 3.8 2.7 0.0 0.0 50.9 179.5 1998 177.7 0.4 0.0 2.2 14.8 0.0 0.0 0.0 0.2 1.7 7.4 0.0 33.1 237.4 1999 225.3 1.1 1.1 0.0 3.1 0.0 0.0 2.0 0.0 0.7 5.2 5.6 33.1 277.3 2000 156.2 2.9 0.0 0.0 0.0 0.0 0.0 0.7 11.8 0.0 0.0 1.5 79.1 252.4 2001 124.5 5.0 0.0 0.0 0.0 0.6 0.6 0.0 2.2 0.0 0.0 0.7 130.9 264.6 2002 143.8 0.6 0.0 0.0 0.0 0.9 3.1 0.0 0.0 0.0 0.0 1.7 103.7 253.8 2003 124.2 2.1 0.0 22.0 0.0 0.0 0.0 0.0 0.0 0.0 5.8 1.1 241.8 397.0 Average 1997-2003 151.4 2.1 0.2 4.2 3.1 0.2 0.5 0.8 2.6 0.7 2.6 1.5 96.1 266.0 Average 1997-2003 56.9 0.8 0.1 1.6 1.2 0.1 0.2 0.3 1.0 0.3 1.0 0.6 36.1 100.0

Share (%) Tourism Manufacturing Transportation Construction Sporting Medical Financial Banking and Insurance Commercial Petroleum Education Agriculture Other Total FDI

1997 60.1 1.5 0.0 2.9 2.1 0.0 0.0 1.4 2.1 1.5 0.0 0.0 28.4 100.0

1998 74.8 0.2 0.0 0.9 6.2 0.0 0.0 0.0 0.1 0.7 3.1 0.0 13.9 100.0

1999 81.2 0.4 0.4 0.0 1.1 0.0 0.0 0.7 0.0 0.3 1.9 2.0 11.9 100.0

2000 61.9 1.2 0.0 0.0 0.0 0.0 0.0 0.3 4.7 0.0 0.0 0.6 31.4 100.0

2001 47.0 1.9 0.0 0.0 0.0 0.2 0.2 0.0 0.8 0.0 0.0 0.3 49.5 100.0

2002 56.7 0.2 0.0 0.0 0.0 0.3 1.2 0.0 0.0 0.0 0.0 0.7 40.9 100.0

2003 31.3 0.5 0.0 5.5 0.0 0.0 0.0 0.0 0.0 0.0 1.5 0.3 60.9 100.0

Memorandum: FDI Inflows to Tourism Sectors 1997 1998 1999 Anguilla 11.2 18.6 31.3 Antigua & Barbuda 2.0 13.9 21.5 Dominica 3.1 0.7 7.8 Grenada 0.3 7.4 7.4 St. Kitts & Nevis 4.0 16.5 45.7 St. Lucia 9.3 42.6 69.0 St. Vincent & Grens. 78.0 78.0 42.6 OECS 107.9 177.7 225.3 Source: Eastern Caribbean Central Bank (ECCB).

2000 35.3 7.3 3.6 14.7 51.8 26.7 16.9 156.2

2001 19.0 19.6 5.9 16.0 62.7 0.0 1.2 124.5

2002 16.0 10.3 4.9 27.0 67.9 14.4 3.3 143.8

2003 7.1 4.1 3.6 38.8 40.5 22.7 7.3 124.2

54

Table 10. Merchandise Exports by Destination, 1993-2003
Country Exports (US$ mn) Antigua World & Barbuda US and Canada CARICOM (non-OECS) OECS Latin America EU Rest of World Intra-OECS Intra-CARICOM Extra-regional Dominica World US and Canada CARICOM (non-OECS) OECS Latin America EU Rest of World Intra-OECS Intra-CARICOM Extra-regional Grenada World US and Canada CARICOM (non-OECS) OECS Latin America EU Rest of World Intra-OECS Intra-CARICOM Extra-regional St Kitts & Nevis World US and Canada CARICOM (non-OECS) OECS Latin America EU Rest of World Intra-OECS Intra-CARICOM Extra-regional 1993 62 15 1 1 4 4 37 1 1 61 49 3 9 6 0 26 5 6 15 34 27 11 4 4 1 7 0 4 8 19 29 10 2 3 0 13 1 3 4 25 1994 44 5 1 1 11 12 13 1 2 42 46 4 10 6 0 22 5 6 16 30 27 9 4 4 3 7 0 4 7 20 25 8 1 3 0 12 1 3 4 21 1995 53 3 1 1 19 9 20 1 2 51 47 4 12 7 0 18 5 7 20 27 23 8 3 4 1 7 1 4 7 16 20 8 0 2 0 8 1 2 2 18 1996 38 10 2 1 4 12 9 1 3 35 52 4 17 7 0 23 1 7 24 28 21 5 2 5 2 8 0 5 6 15 25 5 0 1 0 8 10 1 1 23 1997 38 6 2 2 5 5 18 2 4 34 53 4 20 7 0 21 1 7 27 26 28 7 5 6 1 9 0 6 10 18 47 27 0 1 0 14 4 1 2 45 1998 36 4 2 1 5 11 13 1 3 33 62 3 27 9 1 19 3 9 36 26 43 16 5 6 2 14 0 6 12 32 46 28 0 1 0 12 5 1 1 45 1999 38 2 2 3 4 6 22 3 5 34 56 4 23 8 0 19 1 8 32 25 40 9 5 7 4 15 0 7 11 29 30 21 0 1 0 7 1 1 1 29 2000 43 2 2 2 5 7 25 2 4 39 56 5 22 9 0 18 2 9 32 25 81 38 5 9 3 24 2 9 14 67 36 23 1 2 0 8 2 2 3 33 2001 40 4 2 2 4 6 21 2 4 35 45 3 19 9 0 13 2 9 27 18 63 24 8 8 2 21 0 8 16 47 33 23 0 1 0 8 1 1 1 32 2002 46 4 2 3 5 6 26 3 5 41 45 5 17 8 0 12 3 8 25 21 44 14 7 7 1 14 0 7 14 30 29 27 0 1 0 1 1 1 1 28 2003 47 13 3 3 6 5 18 3 6 41 41 3 18 8 0 10 1 8 26 14 51 18 6 8 2 17 1 8 14 37 52 40 0 1 0 9 1 1 1 51 Shares (%) 93-03 93-98 98-03 100.0 100.0 100.0 14.3 16.1 11.9 3.8 3.0 4.7 4.1 2.4 5.7 14.8 17.9 11.3 17.0 19.8 16.0 46.1 40.9 50.5 4.1 7.8 92.2 2.4 5.4 94.6 5.7 10.4 89.6 AAGR (%) 93-03 93-98 98-03 -2.7 -10.3 5.5 -1.4 -24.5 28.7 14.0 17.5 10.6 19.5 12.8 26.6 3.2 4.1 2.2 2.0 24.0 -16.1 -7.3 -18.5 5.6 19.5 16.6 -3.8 -1.9 0.1 7.9 2.5 3.6 -9.2 -12.8 2.5 5.9 -8.4 6.7 5.2 3.8 6.4 10.4 9.6 9.7 6.4 5.2 7.3 5.9 14.4 -22.5 -10.7 .. -3.1 -2.8 -10.7 -13.7 7.5 12.8 15.6 -11.3 4.8 1.8 25.1 8.2 104.7 -6.1 -12.7 8.2 19.2 -5.2 10.2 8.5 6.0 8.1 23.0 15.4 -11.7 8.1 7.1 11.5 9.5 22.1 -36.3 -24.6 .. -1.6 27.4 -24.6 -28.2 12.8 26.6 17.6 4.3 -8.1 -1.6 -7.0 -3.0 -47.6 -12.2 -13.0 -3.0 -5.9 -11.5 3.3 2.1 1.6 4.6 -0.9 4.1 36.3 4.6 3.3 3.2 2.4 7.2 -5.8 5.7 .. -4.6 -25.9 5.7 3.7 2.4

100.0 100.0 100.0 7.6 6.9 7.8 34.9 30.3 41.2 15.5 14.3 16.7 0.5 0.6 0.8 36.1 41.4 29.7 5.3 6.5 3.8 15.5 50.5 49.5 14.3 44.6 55.4 16.7 57.9 42.1

100.0 100.0 100.0 35.4 32.8 37.0 11.7 13.4 10.9 15.0 16.8 13.9 4.3 5.0 3.9 32.0 30.4 32.8 1.6 1.5 1.5 15.0 26.7 73.3 16.8 30.2 69.8 13.9 24.8 75.2

100.0 100.0 100.0 59.7 45.7 72.0 1.6 2.2 0.9 4.3 5.5 2.8 0.1 0.1 0.1 26.7 34.5 19.9 7.6 12.0 4.4 4.3 5.9 94.1 5.5 7.7 92.3 2.8 3.6 96.4

55

Table 10. Merchandise Exports by Destination, 1993-2003 (Continued)
Country St Lucia Exports (US$ mn) World US and Canada CARICOM (non-OECS) OECS Latin America EU Rest of World Intra-OECS Intra-CARICOM Extra-regional St Vincent World & Grens. US and Canada CARICOM (non-OECS) OECS Latin America EU Rest of World Intra-OECS Intra-CARICOM Extra-regional 1993 133 37 8 21 1 66 2 21 28 105 61 6 10 18 0 26 1 18 28 34 1994 106 35 6 9 0 53 2 9 16 91 55 6 12 19 0 17 1 19 30 24 1995 124 40 8 11 0 61 4 11 19 105 63 7 11 18 0 25 2 18 29 34 1996 82 13 5 6 0 56 2 6 11 71 54 5 11 15 0 22 1 15 27 27 1997 66 15 6 4 0 38 2 4 10 56 50 5 10 18 0 16 1 18 28 22 1998 64 10 7 5 0 41 1 5 13 51 53 4 11 14 0 22 1 14 25 28 1999 59 11 7 6 0 34 1 6 13 47 54 3 13 15 0 21 2 15 29 25 2000 47 11 7 6 0 23 1 6 12 35 58 2 11 14 0 27 4 14 25 33 2001 50 10 9 6 1 23 1 6 15 35 51 2 15 11 0 21 1 11 26 25 2002 81 21 21 11 0 27 2 11 32 49 42 4 11 10 0 16 2 10 21 21 2003 85 21 23 14 1 24 2 14 37 48 45 10 11 11 0 12 2 11 22 23 Shares (%) 93-03 93-98 98-03 100.0 100.0 100.0 24.7 25.9 21.3 12.1 7.1 19.3 10.9 9.8 12.2 0.4 0.3 0.6 49.6 54.7 44.4 2.3 2.1 2.4 10.9 23.0 77.0 9.8 16.9 83.1 12.2 31.5 68.5 AAGR (%) 93-03 93-98 98-03 -4.4 -13.7 5.8 -5.6 -23.3 16.0 11.6 -2.0 27.2 -4.0 -23.2 20.0 1.6 -10.2 15.1 -9.5 -9.2 -9.8 0.7 -16.6 21.5 -4.0 2.7 -7.6 -3.0 4.8 1.0 -4.5 0.0 -7.8 5.4 -4.5 -2.2 -3.6 -23.2 -15.1 -13.3 -3.0 -6.7 1.8 -4.6 25.6 -3.3 -4.0 -4.6 -2.1 -3.8 20.0 24.3 -1.5 -2.9 17.7 0.1 -4.3 -20.3 -12.0 15.6 -4.3 -2.3 -3.4

100.0 100.0 100.0 9.1 10.0 8.0 21.4 19.3 23.7 28.0 30.5 25.0 0.2 0.2 0.2 38.5 38.3 39.5 2.7 1.7 3.5 28.0 49.5 50.5 30.5 49.8 50.2 25.0 48.7 51.3

Country OECS

Exports (US$ mn) World US and Canada CARICOM (non-OECS) OECS Latin America EU Rest of World Intra-OECS Intra-CARICOM Extra-regional

1993 362 82 33 52 6 141 47 52 85 277

1994 303 67 34 42 14 123 23 42 76 228

1995 330 70 36 44 20 127 33 44 80 250

1996 272 42 37 35 6 129 23 35 73 199

1997 281 64 43 38 7 103 26 38 81 200

1998 304 66 51 37 9 118 23 37 88 216

1999 278 50 50 40 8 103 27 40 90 188

2000 322 81 48 42 8 106 36 42 90 232

2001 282 67 53 36 6 92 27 36 89 192

2002 287 74 57 39 7 75 34 39 97 190

2003 320 105 61 45 8 77 25 45 106 214

Shares (%) 93-03 93-98 98-03 100.0 100.0 100.0 23.0 21.1 24.6 15.1 12.7 17.9 13.5 13.4 13.3 3.0 3.3 2.6 35.8 40.1 31.9 9.7 9.4 9.6 13.5 28.6 71.4 13.4 26.1 73.9 13.3 31.3 68.7

AAGR (%) 93-03 93-98 98-03 -1.2 -3.4 1.1 2.4 -4.4 9.8 6.5 9.5 3.6 -1.5 -6.8 4.0 4.1 10.0 -1.4 -5.9 -3.5 -8.3 -6.3 -13.7 1.8 -1.5 2.3 -2.5 -6.8 0.8 -4.9 4.0 3.8 -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
Country Imports (US$ mn) Antigua World & Barbuda US and Canada CARICOM (non-OECS) OECS Latin America EU Rest of World Intra-OECS Intra-CARICOM Extra-regional Dominica World US and Canada CARICOM (non-OECS) OECS Latin America EU Rest of World Intra-OECS Intra-CARICOM Extra-regional Grenada World US and Canada CARICOM (non-OECS) OECS Latin America EU Rest of World Intra-OECS Intra-CARICOM Extra-regional St Kitts & Nevis World US and Canada CARICOM (non-OECS) OECS Latin America EU Rest of World Intra-OECS Intra-CARICOM Extra-regional 1993 168 88 9 6 3 55 6 6 15 153 94 37 16 8 3 18 11 8 24 70 125 48 36 4 5 20 11 4 41 84 118 66 16 4 3 17 12 4 20 97 1994 363 70 35 6 3 238 11 6 41 322 96 36 18 10 3 17 11 10 28 68 119 44 31 4 6 22 13 4 34 85 127 76 16 4 2 14 13 4 21 106 1995 298 112 37 7 4 120 19 7 43 255 117 41 20 11 4 29 12 11 31 86 129 58 32 3 5 20 11 3 35 94 132 76 19 4 2 17 14 4 23 110 1996 318 112 34 7 4 113 48 7 42 276 130 56 24 8 5 25 12 8 32 98 151 69 38 2 5 23 14 2 40 111 146 84 21 5 3 17 16 5 26 120 1997 296 101 37 9 3 128 18 9 46 250 133 59 27 8 6 22 12 8 34 99 168 72 43 3 8 23 18 3 47 121 147 86 23 5 3 18 13 5 28 120 1998 416 111 39 9 3 212 42 9 48 369 132 59 26 6 7 21 13 6 32 100 200 86 53 3 8 29 21 3 56 144 177 72 30 4 1 49 22 4 34 143 1999 818 113 48 11 3 603 40 11 59 759 133 58 26 7 7 19 15 7 33 100 202 91 52 3 9 25 22 3 55 147 153 98 23 5 3 13 11 5 28 125 2000 917 158 32 12 34 619 62 12 44 873 148 62 32 7 10 21 16 7 40 108 239 114 54 3 10 34 23 3 58 181 196 126 32 5 4 17 12 5 37 159 2001 584 113 35 11 36 293 95 11 47 537 131 51 30 6 9 20 14 6 36 95 212 105 50 3 9 25 19 3 53 159 189 117 29 4 4 24 11 4 34 155 2002 693 96 41 12 35 376 134 12 53 641 116 45 28 7 8 16 11 7 35 80 199 91 51 3 10 26 18 3 53 145 201 139 25 5 3 17 13 5 30 171 2003 530 154 47 14 33 157 126 14 61 469 127 51 32 6 9 17 11 6 38 89 253 113 56 4 13 42 26 4 59 194 205 128 33 5 3 24 12 5 38 167 Shares (%) 93-03 93-98 98-03 100.0 100.0 100.0 22.7 31.9 18.8 7.3 10.3 6.1 1.9 2.4 1.8 3.0 1.1 3.7 54.0 46.6 57.1 11.1 7.7 12.6 1.9 9.2 90.8 2.4 12.7 87.3 1.8 7.8 92.2 AAGR (%) 93-03 93-98 98-03 12.2 19.9 4.9 5.7 4.8 6.7 17.6 33.2 3.7 8.8 7.4 10.3 26.8 2.0 57.5 10.9 30.8 -5.9 35.6 47.9 24.3 8.8 14.8 11.9 3.1 3.3 7.2 -2.4 11.2 -0.8 -0.1 -2.4 4.8 2.4 7.3 8.9 4.3 -2.0 10.2 7.8 8.5 -2.0 3.8 8.7 5.7 6.9 7.6 0.4 .. 3.2 0.4 0.4 6.3 5.5 7.4 25.3 19.3 7.1 9.7 10.1 -4.7 18.5 2.3 3.1 -4.7 6.1 7.5 9.8 12.5 7.7 -8.4 9.8 7.5 13.4 -8.4 6.3 11.4 8.4 1.6 13.2 -2.7 .. 23.1 13.5 -2.7 10.4 8.0 10.3 5.1 4.9 -0.8 -2.8 4.4 -0.1 4.2 -3.7 -3.2 -0.1 3.6 -2.4 4.8 5.5 1.1 4.8 10.6 8.1 3.8 4.8 1.3 6.1 3.0 12.3 2.2 3.6 .. -13.5 -11.3 3.6 2.4 3.1

100.0 100.0 100.0 41.0 41.0 41.6 20.6 18.7 22.2 6.3 7.3 5.1 5.2 4.0 6.3 16.7 18.9 14.6 10.2 10.1 10.2 6.3 26.9 73.1 7.3 25.9 74.1 5.1 27.3 72.7

100.0 100.0 100.0 44.7 42.4 46.0 24.8 26.1 24.2 1.8 2.2 1.4 4.5 4.2 4.6 14.4 15.3 13.9 9.8 9.9 9.9 1.8 26.6 73.4 2.2 28.3 71.7 1.4 25.6 74.4

100.0 100.0 100.0 59.6 54.3 60.7 15.0 14.8 15.4 2.7 3.1 2.4 1.7 1.5 1.6 12.7 15.7 12.7 8.3 10.7 7.2 2.7 17.7 82.3 3.1 17.9 82.1 2.4 17.8 82.2

57

Table 11. Merchandise Imports by Origin, 1993-2003 (Continued)
Country St Lucia Imports (US$ mn) World US and Canada CARICOM (non-OECS) OECS Latin America EU Rest of World Intra-OECS Intra-CARICOM Extra-regional St Vincent World & Grens. US and Canada CARICOM (non-OECS) OECS Latin America EU Rest of World Intra-OECS Intra-CARICOM Extra-regional 1993 299 131 46 12 12 58 40 12 59 241 134 54 29 3 5 32 11 3 31 102 1994 302 131 51 13 12 59 36 13 64 238 130 49 31 3 4 32 10 3 34 96 1995 306 128 55 13 13 56 40 13 68 238 134 55 33 3 4 29 10 3 36 98 1996 314 134 57 11 14 58 39 11 68 245 146 61 35 3 8 28 11 3 38 108 1997 332 152 56 15 14 62 33 15 71 261 182 77 41 4 10 37 15 4 44 138 1998 335 147 60 12 14 63 39 12 72 264 192 82 44 3 8 42 13 3 47 145 1999 355 163 67 9 14 59 42 9 77 278 201 82 44 3 8 46 18 3 47 154 2000 355 160 68 9 16 62 40 9 77 278 162 66 46 2 8 25 13 2 49 113 2001 276 124 59 8 12 44 29 8 67 209 186 71 49 2 11 39 14 2 51 136 2002 315 144 62 7 16 53 33 7 69 246 178 76 47 3 9 27 15 3 50 128 2003 393 192 67 12 18 65 39 12 78 315 201 89 53 4 13 26 18 4 57 145 Shares (%) 93-03 93-98 98-03 100.0 100.0 100.0 44.8 43.6 45.9 18.1 17.2 18.9 3.4 4.1 2.8 4.4 4.3 4.5 17.8 18.9 17.0 11.4 12.0 10.9 3.4 21.5 78.5 4.1 21.3 78.7 2.8 21.7 78.3 AAGR (%) 93-03 93-98 98-03 2.8 2.3 3.2 3.9 2.3 5.5 3.7 5.2 2.2 -0.4 -0.4 -0.5 4.2 3.4 5.1 1.2 2.0 0.5 -0.2 -0.6 0.2 -0.4 2.9 2.7 4.2 5.0 6.2 3.9 9.4 -2.2 5.0 3.9 6.0 3.5 -0.4 4.1 1.8 7.5 8.5 8.8 3.0 9.9 5.6 4.1 3.0 8.4 7.2 -0.5 1.8 3.6 0.9 1.7 3.7 4.9 8.8 -9.4 6.0 4.9 3.8 -0.1

100.0 100.0 100.0 41.3 41.1 41.6 24.5 23.2 25.3 1.8 2.1 1.6 4.8 4.3 5.1 19.7 21.8 18.4 8.0 7.6 8.1 1.8 26.3 73.7 2.1 25.2 74.8 1.6 26.8 73.2

Country OECS

Imports (US$ mn) World US and Canada CARICOM (non-OECS) OECS Latin America EU Rest of World Intra-OECS Intra-CARICOM Extra-regional

1993 938 424 153 38 31 201 91 38 191 747

1994 1,138 407 182 40 30 384 95 40 222 915

1995 1,117 471 196 41 31 272 106 41 237 880

1996 1,205 515 209 37 40 265 139 37 247 958

1997 1,259 546 227 43 44 289 109 43 270 989

1998 1,453 557 251 37 42 416 151 37 288 1,165

1999 1,861 606 261 38 45 765 147 38 298 1,563

2000 2,016 686 265 38 83 778 165 38 304 1,712

2001 1,579 582 253 35 81 446 183 35 288 1,291

2002 1,702 591 253 37 81 516 223 37 290 1,411

2003 1,709 727 287 44 89 330 231 44 331 1,378

Shares (%) 93-03 93-98 98-03 100.0 100.0 100.0 38.3 41.1 36.3 15.9 17.1 15.2 2.7 3.3 2.2 3.7 3.1 4.1 29.2 25.7 31.5 10.3 9.7 10.7 2.7 18.6 81.4 3.3 20.5 79.5 2.2 17.4 82.6

AAGR (%) 93-03 93-98 98-03 6.2 9.1 3.3 5.5 5.6 5.5 6.5 10.4 2.7 1.6 -0.6 3.8 11.1 6.3 16.2 5.1 15.7 -4.5 9.8 10.6 8.9 1.6 5.7 6.3 -0.6 8.6 9.3 3.8 2.9 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) Reporter Partner 1993 OECS CARICOM 85.0 Antigua & Barbuda 7.8 The Bahamas 0.2 Barbados 8.1 Belize 0.3 Dominica 19.6 Grenada 5.1 Guyana 3.3 Jamaica 6.9 Montserrat 1.2 St. Kitts & Nevis 3.7 St. Lucia 10.7 St Vincent 3.4 Suriname 0.3 Trinidad & Tobago 14.3 1994 75.6 7.8 0.2 9.8 0.3 9.7 3.5 4.2 7.2 1.7 5.2 10.8 2.6 0.3 12.3 1995 79.8 8.5 0.2 12.1 0.3 10.7 4.9 4.8 6.8 1.2 3.5 11.9 2.7 0.2 12.1 1996 72.5 7.9 0.3 8.2 0.2 7.1 3.2 4.9 12.1 0.8 3.5 9.8 2.7 0.9 11.1 1997 81.4 9.6 0.2 10.7 0.3 5.4 3.9 5.4 13.4 1.0 4.0 11.5 2.8 1.2 12.3 1998 88.2 9.0 0.1 11.7 0.1 6.0 3.6 5.9 18.5 0.4 3.9 10.9 2.9 0.4 14.9 1999 90.1 10.9 0.1 15.7 0.2 5.8 4.0 5.1 15.9 0.9 6.6 9.4 2.1 0.7 12.6 2000 90.1 10.7 0.1 14.9 0.2 6.3 3.5 5.4 14.9 0.9 8.5 9.7 1.9 0.8 12.1 2001 89.1 9.0 0.1 16.5 0.2 5.4 3.2 5.5 12.9 0.8 5.7 9.2 2.3 1.0 17.2 2002 2003 96.8 106.2 8.7 9.1 0.5 0.3 16.7 15.2 0.2 0.7 6.5 7.1 4.1 5.3 5.6 6.5 11.8 11.1 0.7 0.7 5.9 6.7 8.8 9.6 4.0 5.9 1.0 1.1 22.3 27.1 Shares (%) 93-03 93-98 98-03 100.0 100.0 100.0 10.4 10.5 10.3 0.2 0.2 0.2 14.6 12.5 16.2 0.3 0.3 0.3 9.4 12.1 6.6 4.6 5.0 4.2 5.9 5.9 6.1 13.8 13.4 15.2 1.1 1.3 0.8 6.0 5.0 6.7 11.8 13.6 10.3 3.5 3.6 3.4 0.8 0.7 0.9 17.6 16.0 18.9 Shares (%) 93-03 93-98 98-03 100.0 100.0 100.0 1.1 1.2 0.8 0.2 0.3 0.2 13.9 14.9 13.4 0.2 0.2 0.2 2.9 3.2 2.7 2.3 1.9 2.5 4.6 4.1 5.0 5.6 6.6 4.5 0.0 0.1 0.0 0.4 0.5 0.3 2.7 2.5 2.7 5.1 6.9 3.7 0.1 0.1 0.1 61.0 57.6 64.0 Avg Ann Growth (%) 93-03 93-98 98-03 2.3 0.8 3.8 1.5 2.8 0.2 4.1 -21.9 38.9 6.5 7.7 5.4 9.7 -12.6 37.7 -9.7 -21.2 3.5 0.3 -6.7 7.9 7.1 12.3 2.2 4.9 21.7 -9.7 -5.9 -18.6 8.8 6.0 1.0 11.2 -1.1 0.5 -2.6 5.5 -3.5 15.2 12.3 1.4 24.3 6.6 0.8 12.7 Avg Ann Growth (%) 93-03 93-98 98-03 5.7 8.5 2.9 -0.8 -14.9 15.5 -9.4 -24.9 9.2 3.4 10.6 -3.4 11.8 12.5 11.0 2.6 9.7 -4.0 10.0 3.6 16.8 7.8 10.7 4.8 -0.2 -7.1 7.1 -15.7 -28.3 -1.0 -3.9 -2.0 -5.8 8.1 -3.4 20.8 -5.3 -2.7 -7.8 82.5 226.3 2.0 8.0 12.7 3.6

Imports (US$ mn) Reporter Partner 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 OECS CARICOM 191.2 222.9 237.8 247.1 270.4 288.1 298.8 304.2 288.3 290.6 331.7 Antigua & Barbuda 3.5 3.1 2.2 2.7 5.1 1.5 3.1 2.7 2.2 2.4 3.2 The Bahamas 1.7 0.1 0.1 0.2 2.4 0.4 0.3 0.4 0.4 0.5 0.6 Barbados 28.0 28.7 36.6 36.6 41.0 46.2 43.2 40.1 36.0 37.5 38.9 Belize 0.2 0.4 0.5 0.5 0.6 0.4 0.5 0.5 0.6 0.6 0.7 Dominica 6.3 7.3 7.1 7.8 7.9 10.1 8.9 8.0 6.9 7.4 8.2 Grenada 4.0 3.7 4.1 4.3 6.7 4.8 5.8 8.0 8.7 7.9 10.4 Guyana 7.6 9.6 10.8 8.5 11.0 12.6 13.5 16.6 15.6 15.2 16.0 Jamaica 16.7 17.2 16.2 17.0 16.9 11.6 12.7 12.7 12.7 15.1 16.3 Montserrat 0.1 0.3 0.1 0.3 0.1 0.0 0.0 0.0 0.0 0.0 0.0 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 St. Lucia 5.4 7.1 9.3 5.3 4.8 4.5 6.5 7.3 7.8 10.1 11.7 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 Suriname 0.0 0.0 0.0 0.4 0.3 0.3 0.3 0.3 0.3 0.3 0.4 Trinidad & Tobago 99.1 126.7 132.2 146.6 155.2 179.7 190.6 195.2 187.5 184.9 214.4 Source: Author using UN-COMTRADE.

59

Table 13. OECS: Merchandise Trade by Sector, 1993-2003

Total Exports US$ millions 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Ag. Raw Materials 1 1 1 1 0 0 0 0 1 0 1 Food 177 149 163 153 147 109 142 123 117 109 101 Ores & Metals 0 1 1 1 1 0 2 2 2 2 2 Fuels 0 0 0 0 0 0 0 0 0 9 12 Manufactures 121 108 113 79 91 50 96 153 122 119 157 Misc. Manufs. 0 0 0 0 4 0 0 0 0 2 2 Total 300 259 277 234 243 160 240 278 242 241 273

Shares (%) 93-03 93-98 98-03 0.3 0.3 0.2 54.2 61.0 48.7 0.5 0.3 0.7 0.8 0.0 1.5 44.0 38.1 48.6 0.3 0.3 0.3 100.0 100.0 100.0

Intra-regional Exports US$ millions 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Ag. Raw Materials 0 0 0 0 0 0 0 0 0 0 0 Food 36 32 35 30 36 30 38 38 41 35 37 Ores & Metals 0 0 0 0 0 0 1 0 0 0 0 Fuels 0 0 0 0 0 0 0 0 0 9 12 Manufactures 47 41 43 40 41 18 47 47 44 47 51 Misc. Manufs. 0 0 0 0 0 0 0 0 0 1 1 Total 84 74 78 70 77 49 86 86 85 92 100

Shares (%) 93-03 93-98 98-03 0.1 0.1 0.1 44.1 46.3 44.0 0.3 0.1 0.4 2.4 0.1 4.2 52.9 53.3 51.0 0.2 0.0 0.3 100.0 100.0 100.0

Total Imports US$ millions 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Ag. Raw Materials 18 21 20 15 23 17 23 26 21 23 25 Food 190 190 206 186 233 177 230 239 223 222 243 Ores & Metals 5 6 6 6 12 6 8 8 8 8 7 Fuels 56 47 54 58 73 48 71 99 92 86 111 Manufactures 501 509 533 475 620 479 710 727 650 669 793 Misc. Manufs. 0 0 0 0 1 0 0 0 0 0 0 Total 770 774 819 741 962 727 1,043 1,099 995 1,008 1,179

Shares (%) 93-03 93-98 98-03 2.3 2.4 2.2 23.1 24.7 22.0 0.8 0.9 0.7 7.9 7.0 8.4 65.9 65.0 66.6 0.0 0.0 0.0 100.0 100.0 100.0

Intra-regional Imports US$ millions 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Ag. Raw Materials 1 1 1 1 1 1 1 1 1 1 1 Food 53 55 59 47 68 52 69 70 67 63 70 Ores & Metals 1 2 2 1 3 1 2 1 2 2 2 Fuels 36 34 40 39 53 34 58 82 76 71 87 Manufactures 83 89 93 78 99 86 110 105 96 100 111 Misc. Manufs. 0 0 0 0 0 0 0 0 0 0 0 Total 175 181 194 167 224 174 240 260 241 237 270

Shares (%) 93-03 93-98 98-03 0.5 0.5 0.5 28.5 30.1 27.4 0.8 0.9 0.7 25.8 21.1 28.7 44.4 47.4 42.7 0.0 0.0 0.0 100.0 100.0 100.0

Note: OECS excludes Antigua & Barbuda and Montserrat due to lack of comparable data. Source: Author using UN-COMTRADE.

60

Table 14. Top 20 Exports to the World, 1993-1996 and 2000-2003
1993-1996 Share Acc. Product Description (%) Share "Bananas,fresh or dried" 37.0 37.0 Soap;organic surface-active product 5.2 42.3 "Sugars,beet and cane,raw,solid" 4.0 46.3 Flour of wheat or of meslin 3.5 49.8 "Dresses,skirts,suits etc,of wool or" 2.5 52.3 "Nutmeg,mace and cardamoms" 1.7 54.0 "Beer made from malt (includ.ale,sto 1.7 55.6 57.2 "Rice,semi/wholly milled,excl.broke 1.6 58.7 "Elect.app.such as switches,relays,f" 1.5 "Manioc,arrowroot,salep,jerusalem a 1.5 60.1 "Jerseys,pull-overs,etc.of cotton" 1.5 61.6 Brassieres 1.2 62.8 64.0 "Cocoa beans,whole or broken,raw o 1.2 65.1 "Paper & paperboard,corrugated,emb 1.1 "Lemonade,flavoured spa waters & f 0.9 66.0 66.9 "Fish,fresh(live/dead)or chilled,exc" 0.9 Radiotelegraphic & radiotelephonic 0.7 67.7 Other paints & enamels;varnishes & 0.7 68.3 Ornamental art.and objects of mat.o 0.6 69.0 69.6 "Rice,husked but not further prepare 0.6 Top 20 Exports 69.6 Total (1,098 products) 100.0 OECS 2000-2003 Share Acc. Product Description (%) Share "Bananas,fresh or dried" 17.8 17.8 26.9 "Elect.app.such as switches,relays,f" 9.1 "Nutmeg,mace and cardamoms" 5.1 32.0 Soap;organic surface-active product 4.5 36.5 Flour of wheat or of meslin 3.6 40.1 43.1 "Beer made from malt (includ.ale,sto 3.0 Perfumery,cosmetics,etc 2.5 45.6 "Elect.capacitors,condensers, fixed " 2.2 47.8 Parts of and accessories suitable f 2.2 50.0 Electrical insulators of ceramic ma 2.1 52.1 "Sugars,beet and cane,raw,solid" 1.9 54.0 Kerosene (including kerosene type j 1.8 55.8 "Manioc,arrowroot,salep,jerusalem a 1.6 57.4 Yachts & other vessels for pleasure 1.6 59.0 "Passenger motor cars,for transport " 1.3 60.2 "Lemonade,flavoured spa waters & f 1.2 61.5 Radiotelegraphic & radiotelephonic 1.2 62.7 "Rice,semi/wholly milled,excl.broke 1.2 63.8 64.9 "Resistors,fixed or variable and par" 1.1 Sweetened forage; other preptns.for 0.9 65.8 Top 20 Exports 65.8 Total (1,077 products) 100.0 OECS

Code 0573 5541 0611 04601 84521 07524 1123 04221 7721 05481 84512 84651 0721 64174 11102 0341 7643 53342 8933 04212

Code 0573 7721 07524 5541 04601 1123 5530 77884 7599 77323 0611 33421 05481 79321 7810 11102 7643 04221 7723 08199

Note: OECS includes Dominica, Grenada, St Kitts & Nevis, St Lucia and St Vincent & the Grens. 1993-1996 Share Acc. Product Description (%) Share "Bananas,fresh or dried" 44.4 44.4 Soap;organic surface-active product 28.6 73.0 "Manioc,arrowroot,salep,jerusalem a 2.9 76.0 78.4 Other paints & enamels;varnishes & 2.5 "Organic surface-active agents,n.e.s" 1.9 80.3 Perfumery,cosmetics,etc 1.2 81.5 82.4 Sauces;mixed condiments and mixed 0.9 "Avocados,mangoes,guavas,fresh or 0.9 83.3 "Grapefruit,fresh or dried" 0.9 84.2 Disinfectants packed for sale etc. 0.7 84.9 "Vegetables,fresh or chilled,n.e.s." 0.7 85.6 Vanilla 0.6 86.2 Pebbles and crushed or broken stone 0.5 86.7 "Oranges,fresh or dried" 0.5 87.2 87.7 Other polymerization and copolimer 0.4 "Footwear with outer soles & uppers 0.4 88.1 88.5 "Candles,tapers,night-lights and the" 0.4 Art.for the conveyance or packing o 0.4 88.9 "Sands,natural,of all kinds,whether " 0.3 89.2 89.5 "Passenger motor cars,for transport " 0.3 Top 20 Exports 89.5 Total (529 products) 100.0 Dominica 2000-2003 Share Acc. Product Description (%) Share Soap;organic surface-active product 24.7 24.7 "Bananas,fresh or dried" 21.2 46.0 Perfumery,cosmetics,etc 13.8 59.8 Disinfectants packed for sale etc. 3.6 63.4 "Organic surface-active agents,n.e.s" 3.6 66.9 69.9 "Manioc,arrowroot,salep,jerusalem a 2.9 Other paints & enamels;varnishes & 2.9 72.8 Sauces;mixed condiments and mixed 2.4 75.2 77.3 "Sands,natural,of all kinds,whether " 2.1 Pebbles and crushed or broken stone 1.6 78.9 80.3 "Avocados,mangoes,guavas,fresh or 1.4 "Oranges,fresh or dried" 1.2 81.5 "Grapefruit,fresh or dried" 0.9 82.4 83.1 "Coconuts,fresh or dried,shelled or " 0.7 "Vegetables,fresh or chilled,n.e.s." 0.6 83.8 Generating sets with int.comb.pisto 0.6 84.4 "Mechanical shovels & excavators,s 0.6 85.0 "Generators,alternating current" 0.6 85.6 Other fresh fruit 0.6 86.1 "Lemonade,flavoured spa waters & f 0.5 86.7 Top 20 Exports 86.7 Total (510 products) 100.0 Dominica

Code 0573 5541 05481 53342 5542 5530 09804 05797 05722 59141 05459 07521 2734 05711 5839 85101 89931 8931 2733 7810

Code 5541 0573 5530 59141 5542 05481 53342 09804 2733 2734 05797 05711 05722 05771 05459 71623 72342 71622 05798 11102

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)
1993-1996 Share Acc. Product Description (%) Share "Nutmeg,mace and cardamoms" 18.3 18.3 "Cocoa beans,whole or broken,raw o 12.0 30.4 39.6 "Fish,fresh(live/dead)or chilled,exc" 9.3 "Bananas,fresh or dried" 6.6 46.2 Flour of wheat or of meslin 5.4 51.6 56.5 "Hats & other headgear,knitted or cr 4.9 "Other articles,n.e.s.of mat.of div." 4.4 60.9 "Toilet paper,cut to size,in rolls o" 4.1 65.0 Cooking apparatus & plate warmers 2.7 67.7 Refrigerators of household type 2.6 70.3 72.7 "Lemonade,flavoured spa waters & f 2.4 Other fresh fruit 2.3 75.1 77.4 Other paints & enamels;varnishes & 2.3 "Fish,frozen (excluding fillets)" 2.2 79.6 "Other articles of cutlery,secateurs" 2.0 81.6 "Avocados,mangoes,guavas,fresh or 1.7 83.3 "Crustaceans and molluscs,fresh,chi 1.6 84.9 86.4 Sweetened forage; other preptns.for 1.5 "Oth.sheets & plates,of oth.than hig" 0.8 87.2 87.9 "Handkerchiefs,cleansing tissues,& o 0.7 Top 20 Exports 87.9 Total (414 products) 100.0 Grenada 2000-2003 Share Acc. Code Product Description (%) Share 07524 "Nutmeg,mace and cardamoms" 21.9 21.9 7599 Parts of and accessories suitable f 9.3 31.2 7721 "Elect.app.such as switches,relays,f" 9.3 40.5 77323 Electrical insulators of ceramic ma 9.2 49.7 04601 Flour of wheat or of meslin 7.0 56.7 0342 "Fish,frozen (excluding fillets)" 3.2 59.9 64243 "Toilet paper,cut to size,in rolls o" 3.0 63.0 79382 "Light vessels,fire-floats,dredgers " 3.0 65.9 68.5 0341 "Fish,fresh(live/dead)or chilled,exc" 2.5 0721 "Cocoa beans,whole or broken,raw o 2.3 70.7 08199 Sweetened forage; other preptns.for 2.0 72.7 72346 "Other excavating,levelling,extracti" 1.7 74.4 72848 Other mach.having individual functi 1.6 76.0 71623 Generating sets with int.comb.pisto 1.4 77.4 78.7 81242 Lamps & lighting fittings of base m 1.3 72342 "Mechanical shovels & excavators,s 1.3 79.9 89399 "Other articles,n.e.s.of mat.of div." 1.0 81.0 67491 "Oth.sheets & plates,of oth.than hig" 0.9 81.9 84629 "Other under garments,knitted,of cot 0.8 82.7 53342 Other paints & enamels;varnishes & 0.8 83.5 Top 20 Exports 83.5 Total (494 products) 100.0 Grenada

Code 07524 0721 0341 0573 04601 84843 89399 64243 69731 77521 11102 05798 53342 0342 69605 05797 0360 08199 67491 64284

Code 0611 7721 71621 7169 11102 09141 72341 7161 88412 89283 09149 7810 72342 69401 76493 66332 0483 84322 0615 0360

1993-1996 Share Acc. Product Description (%) Share "Sugars,beet and cane,raw,solid" 43.4 43.4 56.3 "Elect.app.such as switches,relays,f" 12.9 Elect.motors other than direct curr 4.0 60.2 Parts of rotating electric plant 3.8 64.1 "Lemonade,flavoured spa waters & f 3.1 67.2 Margarine 1.9 69.1 70.7 "Bulldozers,angledozers & levellers, 1.6 72.2 "Motors & generators,direct current" 1.5 "Lenses,prisus,mirrors,optical eleme 1.2 73.4 "Unused postage,revenue and simila 1.1 74.6 Imitation lard & other prepated edi 1.1 75.7 76.7 "Passenger motor cars,for transport " 1.0 "Mechanical shovels & excavators,s 0.9 77.6 78.4 "Nails,tacks,staples,spiked cramps,s" 0.8 79.1 "Parts of a apparatus of 761--,762--" 0.7 "Articles of cement,of concrete/of a" 0.7 79.8 80.4 "Macaroni,spaghetti and similar prod 0.6 "Suits,costumes,women's,of cotton" 0.6 81.0 81.6 "Molasses,whether or not decolouriz 0.6 "Crustaceans and molluscs,fresh,chi 0.6 82.2 Top 20 Exports 82.2 Total (694 products) 100.0

St. Kitts & Nevis

Code 7721 77884 0611 89283 76493 11102 72342 7169 7810 84394 09141 79321 7642 0360 6911 74428 69912 89972 62103 72722

2000-2003 Share Acc. Product Description (%) Share 47.6 "Elect.app.such as switches,relays,f" 47.6 "Elect.capacitors,condensers, fixed " 15.3 62.9 "Sugars,beet and cane,raw,solid" 13.2 76.1 79.9 "Unused postage,revenue and simila 3.9 "Parts of a apparatus of 761--,762--" 1.6 81.5 83.0 "Lemonade,flavoured spa waters & f 1.5 "Mechanical shovels & excavators,s 1.0 84.0 Parts of rotating electric plant 0.8 84.8 "Passenger motor cars,for transport " 0.7 85.5 Other outer garments of man made f 0.7 86.2 Margarine 0.6 86.8 Yachts & other vessels for pleasure 0.6 87.4 87.9 "Microphones,loudspeakers,amplifie 0.5 "Crustaceans and molluscs,fresh,chi 0.5 88.5 Structures & parts of struc.;iron/s 0.5 89.0 "Other lifting,handling,loading mach 0.5 89.4 "Safes,strong boxes,strong room doo 0.4 89.9 "Brooms and brushes etc.of mat,bou 0.4 90.3 Vulcanized rubber thread and cord 0.4 90.6 "Mach.used in bakery,chocolate,mac 0.4 91.0 Top 20 Exports 91.0 Total (570 products) 100.0

St. Kitts & Nevis

Note: Exports include re-exports and represent total sum for the period. Source: UN-COMTRADE.

62

Table 14. Top 20 Exports to the World, 1993-1996 and 2000-2003 (Cont'd)
1993-1996 Share Acc. Product Description (%) Share "Bananas,fresh or dried" 48.0 48.0 "Dresses,skirts,suits etc,of wool or" 6.0 54.0 57.6 "Beer made from malt (includ.ale,sto 3.6 "Jerseys,pull-overs,etc.of cotton" 3.5 61.1 Brassieres 2.9 64.0 66.7 "Paper & paperboard,corrugated,emb 2.7 Ornamental art.and objects of mat.o 1.5 68.2 69.6 "Resistors,fixed or variable and par" 1.3 Radiotelegraphic & radiotelephonic 1.3 70.9 Other outer garments of cotton 1.1 71.9 72.8 "Diodes,transistors and sim.semi-con 0.8 "Shirts,men's,of cotton" 0.7 73.5 74.2 "Bulldozers,angledozers & levellers, 0.7 "Suits,costumes,women's,of wool or 0.7 74.9 75.5 "Elect.app.such as switches,relays,f" 0.6 Coconut (copra) oil 0.6 76.0 76.5 "Passenger motor cars,for transport " 0.5 "Trousers,breeches etc.of cotton" 0.5 77.0 "Toilet paper,cut to size,in rolls o" 0.4 77.4 "Mechanical shovels & excavators,s 0.4 77.8 Top 20 Exports 77.8 Total (807 products) 100.0 St. Lucia 2000-2003 Share Acc. Code Product Description (%) Share 0573 "Bananas,fresh or dried" 30.9 30.9 1123 "Beer made from malt (includ.ale,sto 11.5 42.4 33421 Kerosene (including kerosene type j 6.9 49.4 7723 "Resistors,fixed or variable and par" 4.4 53.8 7643 Radiotelegraphic & radiotelephonic 4.2 58.0 7810 "Passenger motor cars,for transport " 3.2 61.1 84521 "Dresses,skirts,suits etc,of wool or" 2.0 63.1 76381 Television image and sound recorde 1.7 64.8 66.3 11102 "Lemonade,flavoured spa waters & f 1.5 65751 "Twine,cordage,ropes and cables,pla 1.2 67.6 84522 "Dresses,skirts,suits etc,of cotton" 1.2 68.7 3343 Gas oils 1.0 69.7 11249 Spirits and distilled alcoholic bev 0.9 70.6 72342 "Mechanical shovels & excavators,s 0.8 71.3 87429 "Parts,n.e.s.& accessories for the i" 0.8 72.1 7763 "Diodes,transistors and sim.semi-con 0.7 72.8 89731 Art.of jewellery & parts of preciou 0.6 73.4 7821 Motor vehicles for transport of goo 0.6 74.0 0751 Pepper ; pimento 0.6 74.6 77111 Liquid dielectric transformers 0.5 75.1 Top 20 Exports 75.1 Total (843 products) 100.0 St. Lucia

Code 0573 84521 1123 84512 84651 64174 8933 7723 7643 84393 7763 84411 72341 84321 7721 4243 7810 84232 64243 72342

Code 0573 04601 04221 05481 04212 08199 84333 67491 89731 11102 8931 84649 08122 05797 69731 7929 7643 7821 72341 74422

1993-1996 Share Acc. Product Description (%) Share "Bananas,fresh or dried" 38.4 38.4 Flour of wheat or of meslin 13.8 52.2 59.3 "Rice,semi/wholly milled,excl.broke 7.1 63.6 "Manioc,arrowroot,salep,jerusalem a 4.3 "Rice,husked but not further prepare 2.9 66.5 68.7 Sweetened forage; other preptns.for 2.2 70.8 "Dresses,women's,of man-made fibre 2.1 72.5 "Oth.sheets & plates,of oth.than hig" 1.7 Art.of jewellery & parts of preciou 1.6 74.1 "Lemonade,flavoured spa waters & f 1.3 75.4 Art.for the conveyance or packing o 0.9 76.3 77.2 "Under garments,knitted of other fib 0.9 77.9 "Bran,sharps & other residues of oth 0.7 78.6 "Avocados,mangoes,guavas,fresh or 0.7 Cooking apparatus & plate warmers 0.7 79.2 "Parts of heading 792--,excl.tyres,e" 0.6 79.9 Radiotelegraphic & radiotelephonic 0.6 80.5 Motor vehicles for transport of goo 0.6 81.1 81.7 "Bulldozers,angledozers & levellers, 0.6 "Ships derricks,cranes,mobile liftin" 0.5 82.2 Top 20 Exports 82.2 Total (630 products) 100.0

St. Vincent & the Grens.

Code 0573 04601 79321 04221 05481 11102 08199 67491 05797 04212 8931 82192 7810 84399 0360 7822 79381 7821 78681 6353

2000-2003 Share Acc. Product Description (%) Share "Bananas,fresh or dried" 32.0 32.0 Flour of wheat or of meslin 10.6 42.6 Yachts & other vessels for pleasure 7.3 49.9 "Rice,semi/wholly milled,excl.broke 6.1 56.0 "Manioc,arrowroot,salep,jerusalem a 5.7 61.7 "Lemonade,flavoured spa waters & f 2.6 64.3 Sweetened forage; other preptns.for 2.3 66.6 "Oth.sheets & plates,of oth.than hig" 2.3 68.8 "Avocados,mangoes,guavas,fresh or 2.1 71.0 "Rice,husked but not further prepare 2.1 73.0 Art.for the conveyance or packing o 0.9 74.0 "Furniture,n.e.s. of wood" 0.9 74.9 "Passenger motor cars,for transport " 0.9 75.8 Other outer garments of other fibre 0.8 76.6 "Crustaceans and molluscs,fresh,chi 0.8 77.4 Special purpose motor lorries and v 0.8 78.2 Vessels specially designed for towi 0.7 78.9 Motor vehicles for transport of goo 0.7 79.6 "Other vehicles,not mechanically pro 0.7 80.3 Builders' carpentry and joinery 0.7 81.0 Top 20 Exports 81.0 Total (661 products) 100.0

St. Vincent & the Grens.

Note: Exports include re-exports and represent total sum for the period. Source: UN-COMTRADE.

63

Table 15. Top 20 Exports to CARICOM, 1993-1996 and 2000-2003
1993-1996 Share Acc. Product Description (%) Share Soap;organic surface-active product 15.6 15.6 Flour of wheat or of meslin 12.2 27.8 "Beer made from malt (includ.ale,sto" 5.6 33.5 "Rice,semi/wholly milled,excl.broken 5.2 38.7 "Paper & paperboard,corrugated,embo 3.8 42.5 "Manioc,arrowroot,salep,jerusalem ar 3.0 45.5 "Bananas,fresh or dried" 2.9 48.4 "Lemonade,flavoured spa waters & fla 2.5 50.8 Other paints & enamels;varnishes & 2.3 53.1 Sweetened forage; other preptns.for 2.2 55.3 "Rice,husked but not further prepare" 2.1 57.4 "Toilet paper,cut to size,in rolls o" 2.1 59.5 "Oth.sheets & plates,of oth.than hig" 1.7 61.1 Cooking apparatus & plate warmers w 1.4 62.6 Refrigerators of household type 1.4 63.9 "Organic surface-active agents,n.e.s" 1.3 65.2 Art.for the conveyance or packing o 0.9 66.2 "Bulldozers,angledozers & levellers," 0.9 67.1 Coconut (copra) oil 0.9 67.9 "Passenger motor cars,for transport " 0.7 68.6 Top 20 Exports 68.6 Total (605 products) 100.0 OECS 2000-2003 Share Acc. Code Product Description (%) Share 5541 Soap;organic surface-active product 11.2 11.2 04601 Flour of wheat or of meslin 10.3 21.4 1123 "Beer made from malt (includ.ale,sto" 8.4 29.8 5530 Perfumery,cosmetics,etc 7.3 37.2 33421 Kerosene (including kerosene type j 4.9 42.1 0573 "Bananas,fresh or dried" 3.5 45.6 11102 "Lemonade,flavoured spa waters & fla 3.0 48.6 04221 "Rice,semi/wholly milled,excl.broken 3.0 51.5 05481 "Manioc,arrowroot,salep,jerusalem ar 2.8 54.3 08199 Sweetened forage; other preptns.for 2.5 56.8 7810 "Passenger motor cars,for transport " 2.3 59.1 64243 "Toilet paper,cut to size,in rolls o" 2.2 61.4 53342 Other paints & enamels;varnishes & 2.1 63.5 5542 "Organic surface-active agents,n.e.s" 1.8 65.4 59141 Disinfectants packed for sale etc. 1.8 67.2 67491 "Oth.sheets & plates,of oth.than hig" 1.8 69.0 05797 "Avocados,mangoes,guavas,fresh or d 1.4 70.4 04212 "Rice,husked but not further prepare" 1.1 71.5 72346 "Other excavating,levelling,extracti" 0.8 72.4 81242 Lamps & lighting fittings of base m 0.8 73.2 Top 20 Exports 73.2 Total (627 products) 100.0 OECS

Code 5541 04601 1123 04221 64174 05481 0573 11102 53342 08199 04212 64243 67491 69731 77521 5542 8931 72341 4243 7810

Note: OECS includes Dominica, Grenada, St Kitts & Nevis, St Lucia and St Vincent & the Grens. 1993-1996 Share Acc. Product Description (%) Share Soap;organic surface-active product 63.2 63.2 Other paints & enamels;varnishes & 6.3 69.5 "Organic surface-active agents,n.e.s" 4.7 74.2 "Bananas,fresh or dried" 3.2 77.4 Perfumery,cosmetics,etc 2.1 79.5 Disinfectants packed for sale etc. 1.7 81.2 "Manioc,arrowroot,salep,jerusalem ar 1.3 82.5 Other polymerization and copolimeri 1.1 83.6 "Candles,tapers,night-lights and the" 1.0 84.6 "Footwear with outer soles & uppers, 1.0 85.6 Art.for the conveyance or packing o 0.9 86.5 "Oranges,fresh or dried" 0.7 87.2 "Macaroni,spaghetti and similar prod" 0.7 87.9 Cigarettes 0.6 88.5 Mach.plant & sim.lab.equip.involv.a 0.5 89.1 "Avocados,mangoes,guavas,fresh or d 0.5 89.6 Parts of the machinery of 723.41 to 0.5 90.1 "Passenger motor cars,for transport " 0.5 90.5 Juice of any other fruit or vegetab 0.4 91.0 "Vegetables,fresh or chilled,n.e.s." 0.4 91.4 Top 20 Exports 91.4 Total (218 products) 100.0 Dominica 2000-2003 Share Acc. Code Product Description (%) Share 5541 Soap;organic surface-active product 36.9 36.9 5530 Perfumery,cosmetics,etc 24.2 61.1 59141 Disinfectants packed for sale etc. 6.1 67.2 5542 "Organic surface-active agents,n.e.s" 6.1 73.3 53342 Other paints & enamels;varnishes & 4.8 78.1 0573 "Bananas,fresh or dried" 4.5 82.6 05481 "Manioc,arrowroot,salep,jerusalem ar 1.8 84.4 05711 "Oranges,fresh or dried" 1.4 85.7 05797 "Avocados,mangoes,guavas,fresh or d 1.2 87.0 05459 "Vegetables,fresh or chilled,n.e.s." 0.9 87.9 05771 "Coconuts,fresh or dried,shelled or " 0.9 88.8 05798 Other fresh fruit 0.8 89.6 1222 Cigarettes 0.7 90.3 5543 "Polishes & creams,for footwear,furn" 0.7 91.0 05721 "Lemons and limes,fresh or dried" 0.6 91.6 05722 "Grapefruit,fresh or dried" 0.5 92.1 2734 Pebbles and crushed or broken stone 0.5 92.6 89931 "Candles,tapers,night-lights and the" 0.5 93.1 05857 Juice of any other fruit or vegetab 0.4 93.4 7810 "Passenger motor cars,for transport " 0.3 93.7 Top 20 Exports 93.7 Total (230 products) 100.0 Dominica

Code 5541 53342 5542 0573 5530 59141 05481 5839 89931 85101 8931 05711 0483 1222 7416 05797 7239 7810 05857 05459

Note: Exports include re-exports and represent total sum for the period. Source: UN-COMTRADE.

64

Table 15. Top 20 Exports to CARICOM, 1993-1996 and 2000-2003 (Cont'd)
1993-1996 Share Acc. Product Description (%) Share Flour of wheat or of meslin 17.6 17.6 "Toilet paper,cut to size,in rolls o" 13.2 30.9 Cooking apparatus & plate warmers w 8.9 39.7 Refrigerators of household type 8.7 48.4 Other paints & enamels;varnishes & 7.5 55.9 "Lemonade,flavoured spa waters & fl 5.6 61.6 Sweetened forage; other preptns.for 5.0 66.6 "Oth.sheets & plates,of oth.than hig" 2.8 69.4 "Handkerchiefs,cleansing tissues,& o" 2.3 71.7 Other fresh fruit 1.9 73.6 "Other under garments,knitted,of cot" 1.8 75.3 Handbags 1.6 76.9 "Other excavating,levelling,extracti" 1.5 78.5 Electronic microcircuits 1.1 79.6 "Passenger motor cars,for transport " 1.0 80.6 "Crustaceans and molluscs,fresh,chil" 1.0 81.6 "Nutmeg,mace and cardamoms" 0.9 82.5 Sanitary towels & tampons of paper/ 0.9 83.4 "Wheeled tractors,not incl. in 744.1" 0.8 84.2 "Cinematographic cameras,projectors 0.7 84.9 Top 20 Exports 84.9 Total (228 products) 100.0 Grenada 2000-2003 Share Acc. Code Product Description (%) Share 04601 Flour of wheat or of meslin 29.0 29.0 64243 "Toilet paper,cut to size,in rolls o" 12.5 41.4 08199 Sweetened forage; other preptns.for 8.1 49.6 72346 "Other excavating,levelling,extracti" 5.4 54.9 4.7 59.6 81242 Lamps & lighting fittings of base m 67491 "Oth.sheets & plates,of oth.than hig" 3.9 63.5 66.9 84629 "Other under garments,knitted,of cot" 3.4 53342 Other paints & enamels;varnishes & 3.2 70.1 72848 Other mach.having individual functi 2.8 72.8 74422 "Ships derricks,cranes,mobile liftin" 2.5 75.3 66511 "Carboys,bottles,jars,pots,tubular c" 2.0 77.3 79.2 7642 "Microphones,loudspeakers,amplifier 1.8 80.7 73621 "Forging & stamping machines,metalw 1.6 7929 "Parts of heading 792--,excl.tyres,e" 1.4 82.1 07524 "Nutmeg,mace and cardamoms" 1.1 83.3 7810 "Passenger motor cars,for transport " 1.1 84.4 7821 Motor vehicles for transport of goo 1.1 85.4 86.4 72342 "Mechanical shovels & excavators,sel 1.0 87.3 11102 "Lemonade,flavoured spa waters & fla 1.0 6911 Structures & parts of struc.;iron/s 0.9 88.3 Top 20 Exports 88.3 Total (243 products) 100.0 Grenada

Code 04601 64243 69731 77521 53342 11102 08199 67491 64284 05798 84629 83101 72346 7764 7810 0360 07524 64285 7224 88122

Code 09141 72341 11102 09149 72342 0483 74422 89283 09809 78612 7810 7233 7821 0615 84239 69401 7643 84411 6911 79328

1993-1996 Share Acc. Product Description (%) Share Margarine 13.2 13.2 "Bulldozers,angledozers & levellers," 12.4 25.6 "Lemonade,flavoured spa waters & fl 12.3 37.9 Imitation lard & other prepated edi 7.5 45.4 "Mechanical shovels & excavators,sel 6.6 52.0 "Macaroni,spaghetti and similar prod" 4.5 56.5 "Ships derricks,cranes,mobile liftin" 4.0 60.4 "Unused postage,revenue and similar 3.3 63.7 "Food preparations,n.e.s." 2.5 66.2 Trailers & semi-trailers for transp 2.3 68.5 "Passenger motor cars,for transport " 1.9 70.4 "Road rollers,mechanically propelled" 1.7 72.1 Motor vehicles for transport of goo 1.6 73.6 "Molasses,whether or not decolourize 1.5 75.2 "Trousers,breeches etc.of other fibr" 1.2 76.3 "Nails,tacks,staples,spiked cramps,s" 1.1 77.4 Radiotelegraphic & radiotelephonic 0.8 78.2 "Shirts,men's,of cotton" 0.8 79.0 Structures & parts of struc.;iron/s 0.7 79.7 "Ships,boats and other vessels,n.e.s" 0.7 80.5 Top 20 Exports 80.5 Total (209 products) 100.0

St. Kitts & Nevis

2000-2003 Share Acc. Code Product Description (%) Share 11102 "Lemonade,flavoured spa waters & fla 22.1 22.1 09141 Margarine 10.5 32.6 79321 Yachts & other vessels for pleasure 8.5 41.1 47.8 0483 "Macaroni,spaghetti and similar prod" 6.7 6911 Structures & parts of struc.;iron/s 6.3 54.2 89283 "Unused postage,revenue and similar 5.1 59.3 64.1 7642 "Microphones,loudspeakers,amplifier 4.9 09149 Imitation lard & other prepated edi 4.5 68.7 2.4 71.1 81242 Lamps & lighting fittings of base m 09809 "Food preparations,n.e.s." 1.9 73.0 7161 "Motors & generators,direct current" 1.8 74.8 66511 "Carboys,bottles,jars,pots,tubular c" 1.7 76.6 78.1 84233 "Trousers,breeches etc.of man-made f 1.5 7810 "Passenger motor cars,for transport " 1.3 79.4 11249 Spirits and distilled alcoholic bev 1.2 80.7 81.8 72342 "Mechanical shovels & excavators,sel 1.2 84239 "Trousers,breeches etc.of other fibr" 1.2 83.0 84.0 89211 "Printed books,booklets,brochures,le" 1.0 0149 Other prepared or preserved meat or 0.9 84.9 0611 "Sugars,beet and cane,raw,solid" 0.9 85.9 Top 20 Exports 85.9 Total (125 products) 100.0

St. Kitts & Nevis

Note: Exports include re-exports and represent total sum for the period. Source: UN-COMTRADE.

65

Table 15. Top 20 Exports to CARICOM, 1993-1996 and 2000-2003 (Cont'd)
1993-1996 Share Acc. Product Description (%) Share "Beer made from malt (includ.ale,sto" 21.4 21.4 "Paper & paperboard,corrugated,emb 15.6 37.1 Coconut (copra) oil 3.4 40.5 "Toilet paper,cut to size,in rolls o" 2.5 43.0 Refrigerators of household type 2.2 45.2 "Lemonade,flavoured spa waters & fl 2.1 47.2 "Prepared glues,n.e.s." 1.7 49.0 Mach. for the rubber & artifical pl 1.3 50.3 "Bananas,fresh or dried" 0.9 51.2 Fungicides packed for sale etc. 0.9 52.1 "Passenger motor cars,for transport " 0.9 53.0 "Bulldozers,angledozers & levellers," 0.9 53.8 Parts of the mach.of 723.48 & 727.2 0.7 54.5 "Oth.sheets & plates,of oth.than hig" 0.6 55.1 "Elect.app.such as switches,relays,f" 0.6 55.7 Special purpose motor lorries and v 0.6 56.3 Sauces;mixed condiments and mixed 0.5 56.8 "Pineapples,fresh or dried" 0.5 57.4 "Other excavating,levelling,extracti" 0.5 57.9 Oth.woven fabrics cont.85% of cotto 0.5 58.4 Top 20 Exports 58.4 Total (367 products) 100.0 St. Lucia 2000-2003 Share Acc. Code Product Description (%) Share 1123 "Beer made from malt (includ.ale,sto" 31.3 31.3 33421 Kerosene (including kerosene type j 18.6 49.9 7810 "Passenger motor cars,for transport " 6.1 56.0 59.8 11102 "Lemonade,flavoured spa waters & fla 3.8 3343 Gas oils 2.4 62.3 0573 "Bananas,fresh or dried" 2.0 64.3 7643 Radiotelegraphic & radiotelephonic 1.5 65.7 11249 Spirits and distilled alcoholic bev 1.4 67.2 59229 "Prepared glues,n.e.s." 1.3 68.4 74422 "Ships derricks,cranes,mobile liftin" 0.9 69.3 66511 "Carboys,bottles,jars,pots,tubular c" 0.8 70.1 7821 Motor vehicles for transport of goo 0.7 70.8 8931 Art.for the conveyance or packing o 0.7 71.6 72.2 84629 "Other under garments,knitted,of cot" 0.7 72.9 72342 "Mechanical shovels & excavators,sel 0.7 53342 Other paints & enamels;varnishes & 0.6 73.5 89731 Art.of jewellery & parts of preciou 0.6 74.1 79321 Yachts & other vessels for pleasure 0.5 74.6 69735 Domestic-type water heaters and par 0.5 75.1 75.5 76381 Television image and sound recorder 0.5 Top 20 Exports 75.5 Total (379 products) 100.0 St. Lucia

Code 1123 64174 4243 64243 77521 11102 59229 72842 0573 5912 7810 72341 72849 67491 7721 7822 09804 05795 72346 65224

Code 04601 04221 05481 04212 0573 08199 67491 11102 8931 08122 69731 7643 05797 1123 67327 72833 05771 79328 77886 7821

1993-1996 Share Acc. Product Description (%) Share Flour of wheat or of meslin 28.2 28.2 "Rice,semi/wholly milled,excl.broken 14.0 42.1 "Manioc,arrowroot,salep,jerusalem ar 7.2 49.3 "Rice,husked but not further prepare" 5.6 55.0 "Bananas,fresh or dried" 4.8 59.8 Sweetened forage; other preptns.for 4.5 64.3 "Oth.sheets & plates,of oth.than hig" 3.4 67.6 "Lemonade,flavoured spa waters & fl 2.5 70.1 Art.for the conveyance or packing o 1.9 72.0 "Bran,sharps & other residues of oth" 1.4 73.4 Cooking apparatus & plate warmers w 1.4 74.8 Radiotelegraphic & radiotelephonic 1.3 76.0 "Avocados,mangoes,guavas,fresh or d 1.0 77.0 "Beer made from malt (includ.ale,sto" 1.0 78.0 "Bars & rods,forged,cold-formed or c 0.8 78.8 "Mach.for mixing or kneading earth,s 0.8 79.6 "Coconuts,fresh or dried,shelled or " 0.7 80.3 "Ships,boats and other vessels,n.e.s" 0.7 81.1 Other elect.appl.having individual 0.7 81.8 Motor vehicles for transport of goo 0.7 82.4 Top 20 Exports 82.4 Total (323 products) 100.0

St. Vincent & the Grens.

2000-2003 Share Acc. Code Product Description (%) Share 04601 Flour of wheat or of meslin 22.1 22.1 04221 "Rice,semi/wholly milled,excl.broken 11.4 33.6 05481 "Manioc,arrowroot,salep,jerusalem ar 8.7 42.3 0573 "Bananas,fresh or dried" 6.3 48.5 53.8 11102 "Lemonade,flavoured spa waters & fla 5.3 08199 Sweetened forage; other preptns.for 4.8 58.6 67491 "Oth.sheets & plates,of oth.than hig" 4.7 63.3 04212 "Rice,husked but not further prepare" 4.2 67.5 71.4 05797 "Avocados,mangoes,guavas,fresh or d 3.9 8931 Art.for the conveyance or packing o 2.0 73.4 79381 Vessels specially designed for towi 1.5 74.9 7810 "Passenger motor cars,for transport " 1.5 76.3 6912 Structures & parts of struc.;alumin 1.1 77.4 07526 Ginger (excl.ginger preserved in su 1.0 78.4 6353 Builders' carpentry and joinery 1.0 79.4 0360 "Crustaceans and molluscs,fresh,chil" 0.9 80.3 08122 "Bran,sharps & other residues of oth" 0.9 81.2 82192 "Furniture,n.e.s. of wood" 0.8 82.0 64243 "Toilet paper,cut to size,in rolls o" 0.8 82.8 71622 "Generators,alternating current" 0.7 83.5 Top 20 Exports 83.5 Total (327 products) 100.0

St. Vincent & the Grens.

Note: Exports include re-exports and represent total sum for the period. Source: UN-COMTRADE.

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Table 16. OECS: International Competitiveness of Exports, 1997-2003
Category Champions Achievers in Adversity Underachievers Declining Sectors Total Count 79 14 89 15 197 Export Share 36% 4% 53% 6% 100% Export Sum 1997-2003 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1.8% 0.0% 0.3% 0.0% 2.0% 0.0% 4.3% 0.0% 0.2% 2.0% 0.0% 25.6% 0.1% 3.5% 0.0% 0.0% 0.6% 0.0% 0.0% 6.2% 1.1% 0.2% 0.7% 1.4% 3.4% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Code Product Food and Live Animals 001 Live animals chiefly for food 011 Meat,edible meat offals, fresh, chi 012 Meat & edible offals,salted,in brin 014 Meat & edib.offals,prep./pres.,fish 022 Milk and cream 023 Butter 024 Cheese and curd 025 Eggs and yolks,fresh,dried or other 034 Fish,fresh (live or dead),chilled o 035 Fish,dried,salted or in brine ; smo 036 Crustaceans and molluscs,fresh,chil 037 Fish,crustaceans and molluscs,prepa 042 Rice 045 Cereals,unmilled ( no wheat,rice,ba 046 Meal and flour of wheat and flour o 047 Other cereal meals and flours 048 Cereal prepar. & preps. of flour of 054 Vegetab.,fresh,chilled,frozen/pres. 056 Vegetab.,roots & tubers,prepared/pr 057 Fruit & nuts(not includ. oil nuts), 058 Fruit,preserved,and fruit preparati 061 Sugar and honey 062 Sugar confectionery and other sugar 071 Coffee and coffee substitutes 072 Cocoa 073 Chocolate & other food preptns. con 074 Tea and mate 075 Spices 081 Feed.stuff for animals(not incl.unm 091 Margarine and shortening 098 Edible products and preparations n. Beverages and Tobacco 111 Non alcoholic beverages,n.e.s. 112 Alcoholic beverages 122 Tobacco manufactured Crude Materials except Fuels 222 Oil seeds and oleaginous fruit,whol 223 Oils seeds and oleaginous fruit, wh 245 Fuel wood (excluding wood waste) an 246 Pulpwood (including chips and wood 247 Other wood in the rough or roughly 248 Wood,simply worked,and railway slee 251 Pulp and waste paper 263 Cotton 268 Wool and other animal hair (excludi 269 Old clothing and other old textile 271 Fertilizers,crude 273 Stone,sand and gravel 278 Other crude minerals 282 Waste and scrap metal of iron or st 287 Ores and concentrates of base metal 288 Non-ferrous base metal waste and sc 291 Crude animal materials,n.e.s. 292 Crude vegetable materials, n.e.s. Fuels 322 Coal,lignite and peat 334 Petroleum products,refined 335 Residual petroleum products,nes.& r 341 Gas,natural and manufactured Animal and Vegetable Oils 411 Animal oils and fats 423 Fixed vegetable oils,soft,crude,ref 424 Other fixed vegetable oils,fluid or 431 Animal & vegetable oils and fats,pr

Export Share World Import AAGR 97-03 AAGR 97-03 -38% 9% -35% -19% -7% -47% -25% -100% -9% -3% 21% -44% -8% -100% 1% 207% -1% -8% 41% -12% -2% -16% -45% 4% -12% -31% -4% 2% 1% -9% -4% -3% 8% -1% 22% -50% -9% -100% 100% -24% -14% 100% -100% 9% 53% 9% -25% 31% -100% -19% 69% -4% -42% 94% -100% 100% -9% -100% -44% -100% 0% 3% 3% 6% 3% 1% 5% 2% 4% 2% 2% 3% 0% 0% -8% 3% 7% 5% 3% 4% 4% -1% 5% -8% 9% 6% 0% 3% 1% 3% 6% 10% 5% 2% 5% -1% 8% 0% 0% 0% 3% -4% -5% 0% -3% 2% 0% 9% 2% 1% 0% 3% 2% 8% 7% 11% 0% 2% 6% 5%

Category Underachiever Champion Underachiever Underachiever Underachiever Underachiever Underachiever Underachiever Underachiever Underachiever Champion Underachiever Declining Sector Declining Sector Achiever in Adversity Champion Underachiever Underachiever Champion Underachiever Underachiever Declining Sector Underachiever Achiever in Adversity Underachiever Underachiever Underachiever Champion Champion Underachiever Underachiever Underachiever Champion Underachiever Champion Declining Sector Underachiever Declining Sector Achiever in Adversity Declining Sector Underachiever Achiever in Adversity Declining Sector Champion Achiever in Adversity Champion Underachiever Champion Underachiever Underachiever Achiever in Adversity Underachiever Underachiever Champion Underachiever Champion Underachiever Underachiever Underachiever Underachiever

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Table 16. OECS: International Competitiveness of Exports, 1997-2003 (Cont'd)
Code Product Chemicals 511 Hydrocarbons nes,& their halogen.& 512 Alcohols,phenols,phenol-alcohols,& 514 Nitrogen-function compounds 515 Organo-inorganic and heterocyclic c 516 Other organic chemicals 522 Inorganic chemical elements,oxides 523 Other inorganic chemicals 524 Radio-active and associated materia 531 Synth.org.dyestuffs,etc.nat.indigo 533 Pigments,paints,varnishes & related 541 Medicinal and pharmaceutical produc 551 Essential oils,perfume and flavour 553 Perfumery,cosmetics and toilet prep 554 Soap,cleansing and polishing prepar 562 Fertilizers,manufactured 572 Explosives and pyrotechnic products 582 Condensation,polycondensation & pol 583 Polymerization and copolymerization 585 Other artificial resins and plastic 591 Disinfectants,insecticides,fungicid 592 Starches,inulin & wheat gluten;albu 598 Miscellaneous chemical products,n.e Manufactures 612 Manufactures of leather/of composit 621 Materials of rubber(e.g.,pastes,pla 625 Rubber tyres,tyre cases,etc.for whe 628 Articles of rubber,n.e.s. 634 Veneers,plywood,improved or reconst 635 Wood manufactures,n.e.s. 641 Paper and paperboard 642 Paper and paperboard,cut to size or 651 Textile yarn 652 Cotton fabrics,woven 653 Fabrics,woven,of man-made fibres 654 Textil.fabrics,woven,oth.than cotto 655 Knitted or crocheted fabrics 656 Tulle,lace,embroidery,ribbons,& oth 657 Special textile fabrics and related 658 Made-up articles,wholly/chiefly of 659 Floor coverings,etc. 661 Lime,cement,and fabricated construc 662 Clay construct.materials & refracto 663 Mineral manufactures,n.e.s 664 Glass 665 Glassware 666 Pottery 672 Ingots and other primary forms,of i 673 Iron and steel bars,rods,angles,sha 674 Universals,plates and sheets,of iro 678 Tubes,pipes and fittings,of iron or 679 Iron & steel castings,forgings & st 682 Copper 683 Nickel 684 Aluminium 685 Lead 687 Tin 689 Miscell.non-ferrous base metals emp 691 Structures & parts of struc.;iron,s 692 Metal containers for storage and tr 693 Wire products and fencing grills 694 Nails,screws,nuts,bolts etc.of iron 695 Tools for use in hand or in machine 696 Cutlery 697 Household equipment of base metal,n 699 Manufactures of base metal,n.e.s. Machine and Transport Equipment 711 Steam & other vapour generating boi 713 Internal combustion piston engines 716 Rotating electric plant and parts 718 Other power generating machinery an 721 Agricultural machinery and parts Export Share World Import AAGR 97-03 AAGR 97-03 -21% -18% 100% -100% -52% -4% -18% 100% -100% -7% 42% -8% 17% -12% -22% 41% 20% -13% -100% -3% -19% -7% -100% 58% 19% 37% 51% 9% -16% -5% -24% 95% 6% -100% -40% 38% 65% -39% -6% -12% 38% -16% 19% 14% 4% -51% -32% 2% -10% -75% 7% 100% 323% 100% 100% -36% 7% -14% -16% -3% -3% 25% 3% -2% 100% -6% -10% 30% 51% 8% 5% 10% 7% 4% 3% 1% 8% -2% 6% 16% 9% 9% 7% 1% 6% 6% 5% 3% 2% 4% 6% 1% 6% 5% 6% 2% 5% 4% 4% 0% 1% -2% -2% 4% 4% 3% 9% -1% 3% 3% 4% 6% 4% 1% 5% 3% 4% 2% 5% 0% 8% 4% -3% -1% -1% 4% 3% 2% 5% 3% 4% 7% 6% -4% 6% 5% 5% 3% Export Sum 1997-2003 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.9% 0.1% 0.8% 2.6% 6.5% 0.1% 0.0% 0.0% 0.1% 0.0% 0.7% 0.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.2% 0.1% 2.4% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.3% 0.0% 0.0% 0.0% 0.1% 0.0% 0.1% 0.0% 0.0% 0.0% 0.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.2% 0.1% 0.0% 0.0% 0.1% 0.0% 0.1% 0.1% 0.0% 0.3% 1.1% 0.0% 0.0% Category Underachiever Underachiever Champion Underachiever Underachiever Underachiever Underachiever Champion Declining Sector Underachiever Champion Underachiever Champion Underachiever Underachiever Champion Champion Underachiever Underachiever Underachiever Underachiever Underachiever Underachiever Champion Champion Champion Champion Champion Underachiever Underachiever Declining Sector Champion Achiever in Adversity Declining Sector Underachiever Champion Champion Underachiever Declining Sector Underachiever Champion Underachiever Champion Champion Champion Underachiever Underachiever Champion Underachiever Underachiever Champion Champion Champion Achiever in Adversity Achiever in Adversity Declining Sector Champion Underachiever Underachiever Underachiever Underachiever Champion Champion Underachiever Achiever in Adversity Underachiever Underachiever Champion Champion

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Table 16. OECS: International Competitiveness of Exports, 1997-2003 (Cont'd)
Export Share World Import Code Product AAGR 97-03 AAGR 97-03 722 Tractors fitted or not with power t 24% 1% 24% 4% 723 Civil engineering & contractors pla -22% -1% 724 Textile & leather machinery and par 725 Paper & pulp mill mach.,mach for ma 3% -1% 726 Printing & bookbinding mach.and par -19% -1% 727 Food processing machines and parts 58% 0% 31% 2% 728 Mach.& equipment specialized for pa -16% 0% 736 Mach.tools for working metal or met 737 Metal working machinery and parts 52% -2% 741 Heating & cooling equipment and par 19% 3% -4% 5% 742 Pumps for liquids,liq.elevators and 743 Pumps & compressors,fans & blowers, 1% 6% 36% 2% 744 Mechanical handling equip.and parts 18% 4% 745 Other non-electrical mach.tools,app 1% 5% 749 Non-electric parts and accessories 45% -3% 751 Office machines 752 Automatic data processing machines 6% 4% -15% 5% 759 Parts of and accessories suitable f 761 Television receivers 38% 10% 11% 0% 762 Radio-broadcast receivers 763 Gramophones,dictating,sound recorde 48% 13% 15% 8% 764 Telecommunications equipment and pa 5% 3% 771 Electric power machinery and parts 7% 6% 772 Elect.app.such as switches,relays,f 56% 4% 773 Equipment for distributing electric 162% 8% 774 Electric apparatus for medical purp 5% 7% 775 Household type,elect.& non-electric -11% 7% 776 Thermionic,cold & photo-cathode val 778 Electrical machinery and apparatus, 51% 5% -15% 7% 781 Passenger motor cars,for transport 782 Motor vehicles for transport of goo 37% 5% -4% 3% 783 Road motor vehicles,n.e.s. 784 Parts & accessories of 722--,781--, -18% 7% 785 Motorcycles,motor scooters,invalid 21% 5% 57% 7% 786 Trailers & other vehicles,not motor -50% 8% 791 Railway vehicles & associated equip 792 Aircraft & associated equipment and 24% 5% 16% 9% 793 Ships,boats and floating structures Miscellaneous Manufactures 812 Sanitary,plumbing,heating,lighting 74% 7% 7% 9% 821 Furniture and parts thereof -7% 3% 831 Travel goods,handbags,brief-cases,p 842 Outer garments,men's,of textile fab -6% 2% 843 Outer garments,women's,of textile f -4% 5% 844 Under garments of textile fabrics -22% 1% 845 Outer garments and other articles,k -18% 5% 846 Under garments,knitted or crocheted -8% 6% 847 Clothing accessories of textile fab 12% 4% 1% 3% 848 Art.of apparel & clothing accessori -15% 2% 851 Footwear 871 Optical instruments and apparatus -15% 21% 872 Medical instruments and appliances -9% 10% 873 Meters and counters,n.e.s. 32% 5% 8% 5% 874 Measuring,checking,analysing instru 1% 1% 881 Photographic apparatus and equipmen -15% 0% 882 Photographic & cinematographic supp 883 Cinematograph film,exposed-develope -6% 9% 884 Optical goods,n.e.s. 7% 8% 20% 0% 885 Watches and clocks 11% 4% 892 Printed matter -13% 7% 893 Articles of materials described in 894 Baby carriages,toys,games and sport 9% 4% 6% 3% 895 Office and stationery supplies,n.e. 0% 3% 896 Works of art,collectors pieces & an -5% 5% 897 Jewellery,goldsmiths and other art. 898 Musical instruments,parts and acces 14% 3% -20% 9% 899 Other miscellaneous manufactured ar Other Commodities (not elsewhere specified) 941 Animals,live,n.e.s.,incl. zoo-anima 14% 2% -100% 6% 951 Armoured fighting vehicles,arms of Source: Author using UN-COMTRADE. Export Sum 1997-2003 0.0% 0.9% 0.0% 0.0% 0.0% 0.0% 0.4% 0.1% 0.0% 0.1% 0.1% 0.0% 0.2% 0.1% 0.1% 0.0% 0.1% 1.7% 0.0% 0.0% 0.2% 1.0% 0.2% 9.1% 1.7% 0.0% 0.1% 0.2% 1.9% 0.8% 0.4% 0.0% 0.0% 0.0% 0.1% 0.0% 0.1% 1.2% 0.2% 0.3% 0.1% 0.1% 0.4% 0.1% 1.2% 0.4% 0.1% 0.0% 0.1% 0.0% 0.0% 0.0% 0.2% 0.1% 0.0% 0.0% 0.0% 0.1% 0.4% 0.6% 0.1% 0.0% 0.0% 0.2% 0.1% 0.2% 0.0% 0.0% Category Champion Champion Declining Sector Achiever in Adversity Declining Sector Champion Champion Underachiever Achiever in Adversity Champion Underachiever Champion Champion Champion Champion Achiever in Adversity Champion Underachiever Champion Achiever in Adversity Champion Champion Champion Champion Champion Champion Champion Underachiever Champion Underachiever Champion Underachiever Underachiever Champion Champion Underachiever Champion Champion Champion Champion Underachiever Underachiever Underachiever Underachiever Underachiever Underachiever Champion Champion Underachiever Underachiever Underachiever Champion Champion Champion Declining Sector Underachiever Champion Champion Champion Underachiever Champion Champion Champion Underachiever Champion Underachiever Champion Underachiever

69

Table 17. OECS Member States: Trade Intensity Index, 1995-2003
Dominica Barbados Belize Guyana Jamaica Trinidad & Tobago Grenada Barbados Belize Guyana Jamaica Trinidad & Tobago St. Kitts & Nevis Barbados Belize Guyana Jamaica Trinidad & Tobago St. Lucia Barbados Belize Guyana Jamaica Trinidad & Tobago 1995 0.52 0.22 1.02 0.91 1.76 1995 2.04 0.00 0.20 0.15 1.03 1995 0.80 0.00 0.41 0.02 0.44 1995 1.33 0.56 0.18 0.05 2.68 1996 0.44 0.15 0.77 1.39 0.97 1996 0.84 0.00 0.29 0.13 0.74 1996 0.48 0.00 2.01 0.13 2.24 1996 1.28 0.84 0.29 0.00 2.25 1996 1.08 0.00 0.18 0.12 2.34 1997 0.84 0.25 0.99 1.28 0.86 1997 1.67 0.00 0.33 0.06 1.72 1997 0.43 0.00 0.71 0.05 0.48 1997 1.69 1.22 0.53 0.03 3.03 1997 0.83 0.07 0.24 0.17 1.71 1998 .. .. .. .. .. 1998 1.27 0.00 0.20 0.18 1.59 1998 .. .. .. .. .. 1998 1.33 1.06 0.36 0.01 2.72 1998 0.80 0.00 0.20 0.19 2.11 1999 0.68 0.07 1.34 1.25 0.96 1999 1.24 0.00 0.14 0.28 1.02 1999 0.40 0.00 0.21 0.08 0.37 1999 2.38 1.13 0.34 0.00 1.36 1999 1.37 0.00 0.25 0.16 1.58 2000 0.45 0.00 1.35 1.26 0.94 2000 0.73 0.00 0.10 0.12 1.52 2000 0.67 0.31 0.09 0.02 3.45 2000 2.37 1.09 0.35 0.01 0.58 2000 0.92 0.00 0.16 0.18 1.97 2001 0.47 0.00 1.37 1.10 0.99 2001 0.81 0.03 0.14 0.13 3.23 2001 0.24 0.00 0.00 0.01 1.14 2001 2.68 0.50 0.35 0.01 0.94 2001 1.12 0.00 0.14 0.21 3.21 2002 0.60 0.00 1.33 1.05 1.03 2002 1.25 0.18 0.32 0.12 2.70 2002 1.05 0.00 0.00 0.03 1.11 2002 1.62 0.27 0.16 0.04 4.90 2002 1.61 0.00 0.11 0.23 2.48 2003 0.45 1.49 1.13 1.05 1.62 2003 0.60 0.40 0.29 0.13 3.36 2003 0.52 0.00 0.05 0.09 1.10 2003 0.86 0.37 0.15 0.04 6.57 2003 1.10 0.00 0.07 0.13 3.61 1995-2003 0.54 0.24 1.14 1.18 1.07 1995-2003 1.06 0.07 0.22 0.14 2.00 1995-2003 0.59 0.07 0.52 0.05 1.64 1995-2003 1.57 0.62 0.26 0.03 3.04 1995-2003 1.03 0.01 0.17 0.16 2.32

St. Vincent & Gren 1995 Barbados 0.85 Belize 0.00 Guyana 0.14 Jamaica 0.09 Trinidad & Tobago 2.75

Source: Author using UN-COMTRADE.

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