Diversification, increased production needed to stem decline in exports

Government authorities are encouraging the local private sector to take full advantage of bilateral and multilateral trade policies, as fears continue to grow over the worrying trend of increasing imports and declining exports.

The issue was thrust under the microscope on Wednesday, as representatives from the Ministry of Foreign Affairs and Foreign Trade met online and in person at the Ministry’s Culloden Road offices with officials from the private sector to identify the obstacles and concerns when it came to trade facilitation within the region and identify possible solutions.

Minister of Foreign Affairs and Foreign Trade Kerrie Symmonds gave the assurance that the government would do what was necessary to expand and diversify trading arrangements with jurisdictions around the world. He however, expressed concern about stagnation in the island’s export values and noticeable increase in import values.

“In 2013 for argument’s sake, we exported $535 million [in goods] and up to last year, that figure in terms of export was $502 million. Yes, COVID would have intervened there, but part of it has been the diminution between 2013 and 2019, of the export capacity of the country. That is a cancer that has to be cured,” said Symmonds.

“In addition to that, we have a situation where there is an increasing reliance on importation and that is the reason we are now looking at developing a diversified platform to ensure that we have greater exports and production capacity,” he said.

Symmonds noted that the import value for Barbados at the end of 2022 was around $4.3 billion, an increase from the $3.5 billion in imports in 2013.

“Those are circumstances that I want to emphasise because they make it very clear why we have to have a concerted national effort towards diversification of exports, broadening our exports markets and increasing our production levels,” he said.

The senior government minister said his ministry has started several initiatives to provide support for businesses to do more trade, including a build-out of commercial diplomacy network and overseas missions, as he indicated that by July this year Barbados should have a mission in Ireland.

“In addition to that, we have a country team on external engagement which is also being rolled out. Through this mechanism, coupled with the support of the private sector, the ministry is seeking to improve its collaborative mechanisms and performance in all spheres of external activity,” he said.

“What we must now do is to use the synergy [between the Ministry of Foreign Affairs and Foreign Trade and Ministry of Business] at policy level so that we can have a cohesive approach towards advancing Barbados’ interests both inside the country and outside our borders,” said Symmonds.

Meanwhile, Minister with responsibility for government’s trade policy Sandra Husbands said there was no going back to what obtained in business prior to the COVID-19 pandemic if Barbados was to realise an increase in export and major economic growth.

In fact, urging the private sector to “get used to the new normal” and “a constantly changing economic environment”, Husbands said it will require agility and speed.

She said critical to the process were several areas that were being underutilised including the regional data portal to allow countries to list goods that are available and which can be sourced within CARICOM as well as from the regional government procurement platform.

“Close to $50 billion in business is spent across the region in government procurement. A lot of that needs to stay within the region and it can only do so if our private sector is aware of the regional procurement opportunities,” said Husbands.

She also expressed concern that the private sector was “not making sufficient use” of bilateral trade agreements.

“We actually have a deficit with all of the countries in which we have bilateral agreements, whether it is Costa Rica, Venezuela or wherever. We have a trade deficit. What that means is that by signing these treaties we have opened our market significantly but we have not benefited as we should and we want to turn this around,” she said.

Husbands said it would require a unified approach.

“This enterprise is not going to succeed if we feel that it is all government that has to make it happen, or if we feel it has to be all private sector that has to make it happen,” Husbands added. (MM)