‘Urgent’ services diversification needed – Symmonds

Barbados and the rest of the Caribbean must urgently diversify their economies to reduce reliance on tourism, Kerrie Symmonds, the senior minister coordinating the productive sector and Minister of Foreign Affairs and Foreign Trade, warned on Wednesday.

He highlighted the vulnerabilities of the region’s economic dependence on travel and tourism, especially during the COVID-19 pandemic, as he addressed the Barbados Coalition of Service Industries (BCSI) second Council of Leaders meeting.

“The need for diversification is real and pressing,” Symmonds said.

He also called for a re-examination of the 16-year-old economic partnership agreement with European countries to overcome several trade barriers to Caribbean service providers.

The minister pointed to the severe economic slump caused by the pandemic, which resulted in almost all CARICOM member states experiencing double-digit GDP declines. Barbados, he noted, was among the hardest-hit countries due to its reliance on international travel.

“When there was a cessation of international travel, the travel and hospitality-dependent economies of the Caribbean got hit exceptionally hard,” he said.

The pandemic’s impact, Symmonds explained, forced the region into “recovery mode”, slowing growth ambitions and exposing the dangers of over-reliance on tourism.

“This period should have been a wake-up call,” the foreign trade minister said, calling for immediate action to diversify the economy.

Symmonds said the conversation now has to be “how we fit ourselves into the global expansion of trade and services”, and he called for exploration of new growth areas within emerging industries, including digital services, healthcare and logistics. He suggested targeting niche markets to better integrate Barbados into the global economy.

The senior minister also revealed that a Cabinet subcommittee on external trade had been established to include various industries in discussions on trade promotion and economic diversification. The aim, he said, is to create an “ecosystem” that allows Barbados to connect more effectively with international and regional economies.

Strengthening global market ties is also a key priority, particularly with Canada, Symmonds said, pointing to ongoing discussions to create a partial scope agreement to expand Barbados’ service exports.

Highlighting successful examples in the insurance and construction industries, he queried: “Why are we content to limit ourselves to this region of space without knocking on the doors of a trading partner which is very familiar with the Barbadian product, very familiar with the Barbadian personality?”

Symmonds also raised concerns about the region’s inability to fully capitalise on trade agreements with the European Union, pointing to the lack of mutual recognition agreements for services since the CARIFORUM group signed the Economic Partnership Agreement (EPA) with the EU in 2008.

“Frankly, I am embarrassed that in 2008 we signed on to this thing with the Europeans, and what we got to show for it… that has to be the conversation going forward,” he declared.

Mutual recognition agreements allow professionals from one country to work in another without needing to undergo additional certification or licensing processes.

CARIFORUM countries have struggled to finalise the agreements, particularly in architecture and engineering. Efforts have been ongoing for over a decade, but significant barriers remain, say experts. These include differences in standards and qualifications among member states.

Calling for collaboration between government and the private sector, Symmonds urged businesses to push for these agreements, adding: “The heavy lifting has to be done now because we can’t go on this way indefinitely.” (SM)