Market Opportunities in the Caribbean Berletta Forrester Export Promotion Manager 2011 February 22 - PowerPoint PPT Presentation

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Market Opportunities in the Caribbean Berletta Forrester Export Promotion Manager 2011 February 22

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Title: Market Opportunities in the Caribbean Berletta Forrester Export Promotion Manager 2011 February 22


1
Market Opportunities in the CaribbeanBerletta
ForresterExport Promotion Manager2011 February
22
2
Presentation Outline
  • Part 1 CARIFORUM
  • Background
  • CARICOM Intra-Regional Trade
  • Country Profiles - MDCs
  • Export Opportunities
  • Commodities
  • Services
  • Part 2 French Caribbean Outermost Regions
    (FCORs)
  • Background
  • EPA , Country Data
  • Export Opportunities
  • Commodities
  • Services
  • Summary, Next Steps Closing

3
(No Transcript)
4
CARIFORUM Forum Of Caribbean States
  • CARIFORUM
  • 14 Member Countries of CARICOM plus the
    Dominican Republic.
  1. Antigua Barbuda
  2. Bahamas
  3. Barbados
  4. Belize
  5. Dominica
  6. Grenada
  7. Guyana
  8. Haiti
  9. Jamaica
  10. Montserrat
  11. St. Kitts Nevis
  12. St Vincent and the Grenadines
  13. Suriname
  14. Trinidad and Tobago

5
CARICOMs Intra-Regional Trade Policy CSME
  • 2001 - Revised treaty of Chaguaramas established
    the Caribbean Community and the CARICOM Single
    market and Economy
  • 2006 12 Member states formally implemented the
    CARICOM Single Market (CSM)

6
Implications of CARICOM Single Market
7
CARICOM Intra-regional and Extra-Regional Trade -
1996 - 2004
US billions percent
81.9
8
CARICOM Intra-Regional Trade
  • More Developed Countries accounted for 93 of
    Intra regional trade
  • Major domestic exports over the period included
  • Cigarettes
  • Petroleum products (gasoline, lubricating oils,
    kerosene, propane and butanes
  • Aerated beverages
  • Sugar cane (raw)
  • Building cement

9
CARICOM Intra Regional Trade
  • Differences in production and export structures
  • T T economic activity concentrated in oil and
    natural gas sector
  • Jamaica Suriname large mineral sectors
  • Guyana Belize economy dominated by
    agriculture
  • OECS countries, Bahamas and Barbados mainly
    service-based economies
  • Past decade, TTs exports to CARICOM grew by
    average 11 per year and CARICOM now absorbs 20
    of that countrys total merchandise exports
  • Barbados and Jamaica have lost market share in
    the regional market

10
Factors in Market Selection
  • Solicit information on market potential and make
    decision based on the data
  • Market importance in terms of size, per capita
    income, purchasing power
  • Importance in terms of culture, similar uses,
    purchasing patterns
  • Competing products, market conditions,
    distribution mechanisms, price, promotional spend
    and types of promotion
  • Regulation governing imports and marketing of
    products

11
CARICOM Countries Selected Indicators
12
Trinidad Tobago
  • Population 1,228,691
  • Currency Trinidad and Tobago dollars (TTD)
  • Exchange rate US 1 TTD 6.33
  • Major imports
  • Mineral fuels
  • Lubricants
  • Machinery
  • Transportation equipment
  • Manufactured goods
  • Food
  • Chemicals

13
Trinidad the Jamaican perspective
  • Oil-rich
  • Very dynamic economy
  • Main exporter within CARICOM
  • Very high per capita income
  • Demand for skilled labour

14
Guyana
  • Population 748,486
  • Currency Guyanese dollar (GYD)
  • Exchange rate US 1 GYD 204
  • Major/principal imports
  • Manufactured goods
  • Machinery
  • Petroleum
  • Food

15
Guyana the Jamaican perspective
  • Export potential
  • Manufactured goods
  • Food
  • Soaps
  • Possibility for joint ventures with furniture
    sector

16
Suriname
  • Population 486,618
  • Currency Surinamese dollar (SRD)
  • Exchange rate US 1 SRD 2.745
  • Major imports
  • Capital equipment
  • Petroleum
  • Food stuff
  • Cotton
  • Consumer goods

17
Suriname the Jamaican perspective
  • Export potential
  • Food products
  • Consumer goods
  • Source of raw material
  • Transportation challenges
  • Growing market

18
Barbados
  • Population 285,653
  • Currency Barbadian Dollar (BBD)
  • Exchange rate US 1 BBD 2
  • Major Imports
  • Consumer Goods
  • Machinery
  • Food products
  • Construction material
  • Chemicals
  • Fuel
  • Electrical components

19
Barbados the Jamaican perspective
  • Non-tariff barriers
  • Its strength is service
  • Imports almost everything that is consumed
  • Very high number of high-income tourists

20
Dominican Republic
  • Population 9,823,821
  • Currency Dominican peso (DOP)
  • Exchange rate US 1 DOP 36.92
  • Major imports
  • Food products
  • Petroleum
  • Cotton fabrics
  • Chemicals
  • Pharmaceuticals

21
Haiti
  • Population 9,719,932
  • Currency Gourdes (HTG)
  • Exchange rate US 1 41.19 HTG
  • Major imports
  • Food
  • Manufactured goods
  • Machinery and transport equipment
  • Fuels
  • Raw Material

22
Belize
  • Population 314,522
  • Currency Belizean Dollar (BZD)
  • Exchange rate US 1 2 BZD
  • Major imports
  • Food Beverages
  • Tobacco
  • Manufactured goods
  • Machinery and transport equipment
  • Fuels
  • Chemicals
  • Pharmaceuticals

23
The Organization of Eastern Caribbean States (OECS
  • The OECS currently has nine members, spread
    across the Eastern Caribbean.
  • 7 have full membership
  • Antigua Barbuda
  • Dominica
  • Grenada
  • Montserrat
  • St Kitts Nevis
  • St. Lucia
  • St Vincent and the Grenadines

24
What are the key Market Opportunities?
25
Export Opportunities - Goods
  • Manufactured goods
  • Light manufacturing
  • Agro-processing
  • Food Beverages
  • Baked products
  • Aqua-culture
  • Chemicals
  • Soaps, cleaning products

26
Manufactured goods
  • Light manufacturing
  • Paper products paperboard
  • Furniture, lighting, signs
  • Plastics
  • Rubbers
  • Agro-processing
  • Beverages, spirits, vinegar
  • Meat, fish sea-food food preparations

27
Chemicals
  • Organic chemicals
  • Soaps, lubricants
  • Perfumes, cosmetics, toiletries
  • Pharmaceutical products

28
Baked products
  • Strong demand for baked products value of
    CARICOM Trade in baked products US 108.5mn
    (2009)
  • Sector includes
  • Communion wafers
  • Sweet biscuits
  • Waffles wafers
  • Toasted bread and similar toasted products
  • Crisp bread and
  • Gingerbread
  • Most dynamic CARICOM importers of baked products
    (2001- 2009)
  • Suriname (19.2 annual growth rate)
  • Haiti (10.1)
  • Belize (8.6)

29
  • Export of services

30
Service delivery within Caribbean
31
Export of services
  • Anecdotal evidence suggests marked increase in
    level of intra-regional services trade over the
    last decade
  • Industries include
  • Finance
  • Insurance
  • Tourism
  • Retail
  • Entertainment
  • Business services

32
Export Opportunities - Services
  • Business Development services
  • ICT
  • Construction-related services
  • Production Services for the Entertainment
    Industry

33
Services Exports - Major Challenges
  • Lack of institutional support
  • Diminished export competitiveness due to rising
    costs
  • Lack of entrepreneurship
  • Deficiency in knowledge and skills in export
    marketing of services
  • Absence of information about related export
    market opportunities and, generally, how to
    realize this potential.

34
Services Exports - JAMPROs Role
  • Awareness Building
  • Public Private Partnerships
  • Institutional and Network Strengthening
  • Export Strategy Development
  • Enhancing Firm-level Competitiveness
  • Targeted Trade Promotion
  • Strengthening Brand Jamaica

35
Transport and Logistics
  • 3 lines go to the Eastern Caribbean
  • Seaboard Jamaica
  • Seafreight
  • CFS
  • Amerijet air cargo services to the Caribbean
    (except Cuba)

36
Market Access Challenges
  • Language
  • Dom Rep
  • Haiti
  • Tariff Barriers
  • Non-Tariff Barriers

37
Tariff Barriers
  • Some member countries still use trade charges
    e.g. customs charges, stamp duties on imports of
    CARICOM origin
  • Some countries apply discriminatory rates of
    consumption taxes
  • Barbados imposes stamp duty of 10
  • TT excise duties on cigarettes, alcoholic
    beverages, tobacco and cigars
  • OECS import duties on rums

38
Non-Tariff Barriers
  • Non-tariff barriers - widely used in CARICOM
    countries.
  • While some countries, e.g. TNT, have removed
    non-tariff barriers on imports from CARICOM
    countries, others, such as Barbados and the OECS
    countries, still maintain an array of such
    measures.
  • Alcoholic beverage companies face a
    non-transparent licensing regime for exporting to
    Antigua

39
Non-Tariff Barriers
Type Country/Group Product Categories
Import Licensing OECS Agricultural and food products from MDCs
  Barbados Coconuts and other food products, coin operated amusement machines
  Suriname All imports from CARICOM
Import quotas Grenada Beer and malt from regional producers
     
40
Non-Tariff Barriers
Type Country/Group Product Categories
Anti-dumping and countervailing measures Barbados Milk cream manufactured in Trinidad
Safeguards Barbados Pasta
  Grenada Brewery products, wheat flour, feeds, wooden products
  St. Lucia Soft drinks, beef patties
41
How to resolve instances of non-tariff barriers
  • Companies need to report any instances of
    non-tariff barriers to
  • JAMPRO
  • Ministry of Foreign Affairs Foreign Trade
  • Industry associations including the PSOJ, JEA,
    JMA, JAS

42
Q A Session
  • End of Part 1

43
French Caribbean Outermost Regions (FCORs)
  • Part 2

44
French Caribbean Outermost Regions (FCORs)
  • Located in the Caribbean Basin but belong to
    France
  • Martinique
  • Guadeloupe
  • French Guiana

45
Martinique
  • Significant imports from T T
  • Main sectors trade and commercial services,
    administrative services, construction and
    industrial activities
  • Consumer trends Tastes of consumers are greatly
    influenced by the French market

46
Market structure - Martinique
  • WHOLESALE SECTOR
  • Sophisticated distribution system for food
    products
  • 5 major food importers
  • Sogedial Martinique
  • Rene Lancry
  • S.A. Multigros
  • George de Negri
  • Sodicar
  • Strong competition among the four larger
    wholesalers.
  • Extensive facilities for food storage, handling
    and distribution

47
Market structure - Martinique
  • RETAIL SECTOR
  • Most important retail food outlets supermarkets
    and hypermarkets
  • 5 major hypermarkets
  • Euromarche
  • Hyper U
  • Carrefour
  • Premisteres Reynoird
  • Le Phare
  • Also large number of small country shops, green
    grocers and superettes

48
Guadeloupe
  • 1 of the 5 richest Caribbean islands
  • Service sectors contribute 70 of revenues
  • Followed by trade (15) and construction
  • Principal imports
  • Energy-generated products, intermediate goods,
    car industry, agricultural and food industry
    products, equipment, consumer goods

49
Market structure - Guadeloupe
  • WHOLESALERS/DISTRIBUTORS
  • 4 most important food distributors also own
    supermarkets
  • Groupe Primisteres Reynoird
  • Groupe SAFO
  • Groupe Hayot
  • Groupe Le Metayer
  • Many large-scale retailers import in large
    volumes, primarily from France.
  • Independent wholesalers control the majority of
    food imports most important contacts for
    exporters. They usually do not own/operate
    retail businesses

50
Market structure - Guadeloupe
  • RETAIL SECTOR
  • Supermarket sector very well developed
  • Large number of supermarkets and hypermarkets,
    most concentrated in and around Pointe-a-Pitres,
    Les Abymes and Baie Mahault
  • Consumers are brand loyal to imports and prefer
    to buy imported products over locally
    manufactured products

51
French Guiana
  • Located on the South-American Continent
  • Main industries
  • Gold mining, fishing, rice culture, lumber,
    tourism the aerospace industry

52
Background on the EPA
  • Based on reciprocal trade between the EU
    CARIFORUM
  • Entails liberalization in goods and services
    under specific principles and conditions
  • Removes barriers to most CARIFORUM exports in
    goods and services to the EU (exceptions being
    sugar and rice)
  • Includes improved rules of origin, allowing for
    intermediate products from outside the region

53
What are the benefits from increased trade with
FCORs?
54
Total exports from CARIFORUM to FCORs 2006 - 2008
  • US

55
CARI-FORUM Exports to FCORs by Country - 2006
2008 (US)
56
CARIFORUM Exports to FCORs by Category - 2006
2008 (US)
57
What products does Jamaica currently export to
FCORs?
  • Animal and farm products
  • Lobster, shrimp and other crustaceans
  • Food products
  • Farm products such as fruit
  • Beverages (juices, aerated water, beer, fermented
    beverages, other wines, brandy)
  • Pepper sauce, soups and food preparations
  • Baked products (bread, pastries)
  • Medicaments
  • Wood products
  • Clothing
  • Beauty/ Make-up Preparations

58
Export opportunities to FCORs - Goods
  • Agricultural sea-food products
  • Agro-processing
  • sauces, spices, condiments, jams, jellies
  • Food products
  • Food preparations, mineral waters, beers, aerated
    waters
  • Paper and paperboard products
  • Minerals
  • Chemicals
  • Textiles
  • Plastics Rubbers
  • Stone/Glass

59
Priority Area for Export
Domestic Capacity
Market Overview
60
Priority Area for Export
Domestic Capacity
Market Overview
61
Priority Area for Export
Domestic Capacity
Market Overview
62
Priority Area for Export
Domestic Capacity
Market Overview
63
Priority Area for Export
Domestic Capacity
Market Overview
64
Priority Area for Export
Domestic Capacity
Market Overview
65
Priority Area for Export
Domestic Capacity
Market Overview
66
Priority Area for Export
Domestic Capacity
Market Overview
67
Export opportunities to FCORs -Services
  • Education -Technical and Vocational Services
  • Fashion
  • ICT
  • Cultural Industries - music, recreational,
    cultural and sporting services
  • Film
  • Tourism
  • Tourism Customer Services Training
  • Renewable Energy

68
Priority Area for Export
Domestic Capacity
Market Overview
69
Priority Area for Export
Domestic Capacity
Market Overview
70
Priority Area for Export
Domestic Capacity
Market Overview
71
Priority Area for Export
Domestic Capacity
Market Overview
72
Priority Area for Export
Domestic Capacity
Market Overview
73
Market Access Issues
  • EU standards and regulations controlling plant
    and animal health, product quality, processing,
    food safety, packaging and labelling
  • Fresh fruits and vegetables must meet quality
    standards and minimum allowable pesticide residue
    requirements of the EU, as well as specific
    phyto-sanitary restrictions and requirements

74
Market Access Issues
  • Agro-business exporters face tighter minimum
    residue levels for exporting with trace elements
    of fertilizers to the EU
  • Dairy exporters continue to have difficulty,
    because of issues including rules of origin and
    traceability, in accessing EU markets
  • France allows the Outre-Mer Departments to apply
    a special tariff on imports known as the Octroi
    de Mer tariff and Additional Octroi de Mer tariff
    at their discretion

75
Challenges/Barriers to Trade - FCORs
  • Visa associated entry requirements
  • Language
  • Challenges in meeting French/EU standards
    (quality issues and documentation requirements)
  • Insufficient knowledge of the French system (tax
    structure, market structure, bureaucracy)
  • Absence of in-market distributor/representative
  • Inadequate transport
  • Inability of SMEs to fill container critical
    mass required to reduce average shipping costs
  • High duties
  • French culture and perceptions that French
    products are the best

76
Overcoming barriers to trade - FCORs
Barrier Suggested ways to overcome
Language CARIFORUM FCOR BSOs to devise strategies to facilitate language training to support trade. This can be done through each islands official investment authority of export association
Transportation availability and cost Regional and national governments and private sector need to come together to discuss creative ways of making regional transportation more available and economical by combining resources to provide such transportation or guaranteeing loans and helping to devise plans so that the private sector can provide the services.
77
Overcoming barriers to trade - FCORs
Barrier Suggested ways to overcome
EU Regulations Standards Increased capacity of CARIFORUM BSOs and national Bureaux of standards and testing facilities to meet EU/French standards
Limited knowledge of market conditions/Lack of information Provision of information booklets CARIFORUM and FCOR Official Investment Authorities /Business Councils with updated market trends, products, suppliers, etc.
78
Transportation Options to FCORs
SHIPPING OPTIONS TO FCORS AIRLINE OPTIONS TO FCORS AIRLINE OPTIONS TO FCORS  
Martinique Guadeloupe Martinique French Guiana
CMA/CGM - Main Liner Caribbean Caribbean Connection on Air
  Airlines to Airlines to France or
  Antigua or St. Barbados with Air Caraibes
  Maarten with next day LIAT in
  next day LIAT connection Guadeloupe
  connection via   or
  Antigua (4   Martinique
  days/week)    
79
Q A Session
  • End of Part 2

80
Summary recommendations
  • Part 3

81
Key Points
  1. Do your research design your marketing strategy
  2. It is of vital importance to invest time and to
    make frequent contact with buyer
  3. We should not sell what we produce, we ought to
    produce what we can sell
  4. Acquaint yourself with the rules of the target
    market
  5. Explore opportunities not only for buying and
    selling, but also for joint ventures and
    strategic alliances
  6. Build trust

82
Next steps Producers/Exporters
  1. Fill the information gaps
  2. Initiate more personal contact with firms that
    are import-ready
  3. Market intelligence
  4. Market Visits
  5. Proactive business strategy

83
Next steps JAMPRO
  • Establish networks and partnerships with entities
    in FCORs
  • Facilitate contacts with the Chambers of Commerce
    and Regional Councils in the FCORs to initiate
    the process of doing business
  • Make arrangements to have specific industry
    representatives present data and market
    opportunities
  • Organize Trade Missions to these markets
  • Host incoming buyers from these markets

84
Upcoming Events
  • Trade Mission to the Bahamas - April
  • Trade Mission to the French Caribbean July
  • Design Caribbean Gift Craft Trade Show in the
    DR September
  • Expo Jamaica April 2012

85
Thank You!
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