MAJOR DEVELOPMENTS IN THE PRODUCTION AND DISSEMINATION

OF MERCHANDISE TRADE STATISTICS

2

Inter-American Development Bank (IDB)

CARICOM

PROGRAM TO ENHANCE DISSEMINATION OF TRADE DATA IN CARICOM: STRENGTHENING OF TRADSYS – 2006-2009 The general objective of the project was to

improve the timeliness and accessibility of trade data in CARICOM.

Major Outputs Assessment of Trade Information System in Member

States Development of Data Submission Protocol; Pilot implementation of the Protocol in Suriname Development of an Online Facility to access Regional

Trade Information System –TradSys Online

3

TradSys Online CARICOM

It can be accessed at www.caricomstats.org;

Online application which allows users to obtain Trade Information via the Internet;

Users can access data through two tiers: Tier 1 is accessible to all users, Tier 2 provides privileged users with more

detailed information – not yet accessible.

4

TradSys Online cont’d

CARICOM

5

European Union funded Projects

CARICOM

9th European Development Fund Major Outputs

Updating of Assessment of Trade Information Systems in MS;

Implementation of the New Eurotrace Software; Enabled the implementation of the Data

Submission Protocol module by countries automatically;

Training workshops in the use of the Software – conducted in collaboration with Eurostat;

Incorporation of the editing modules to improve the quality of trade data.

6

European Union funded Projects cont’d

CARICOM

Implementation of the Trade Indices Module (TIM)/training workshop to enable the production of trade price and volume indices;

Implementation of Web Comext Module /training workshop to facilitate the dissemination of trade data;

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European Union funded Projects cont’d

CARICOM

TENTH EDF: Upgrade TradSys Online with COMEXT;

Reinforce TIM and COMEXT in countries;

Treat with challenges in the use the New Eurotrace relative to changes in Customs Systems.

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CARICOM

PERFORMANCE OF TRADE: 1973-2011

9

CARICOM Overview

Introduction

CARICOM’s Total Trade

CARICOM’s Intra-regional Trade

CARICOM’s trade with third countries

Brief conclusions

10

Introduction CARICOM

4th July 1973 – Establishment of the Caribbean Community

Expansion of trade both intra-regionally and extra-regionally

Changes in the global environment over the period would have impacted trade

Removal of preferential arrangements for sugar and banana

OPEC – oil prices hikes, mid and late 70’s Debt crisis of the mid 80s Global financial and economic crisis of 2008

Establishment of the CSME in 2006

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CARICOM’s Total Trade -Exports

CARICOM

1973-2011 CARICOM’S total exports expanded at an average

annual growth rate of 8.0%;

It moved from US$1.0 in 1973 to US$18.8 bn in 2011;

The mid 1980s period (debt crisis) saw a slump in exports;

The period, 2008-2009 saw a huge decline in exports due to the global financial and economic crisis reflected a negative growth rate of 46.1 percent.

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CARICOM’s Total Trade -Imports

CARICOM

1973-2011 The average annual growth rate for the

period was 7.7 percent;

A similar dip in imports occurred in the mid 1980s;

For 2008-2009 there was also a huge decrease in imports of 25.9%;

Overall, the Region’s trade was in deficit over the period and averaged US$2.2 billion.

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Distribution of Total Exports

CARICOM

The USA was most significant market for CARICOM’s exports accounting on average for 44.2 percent of the Region’s exports for 1973 to 2011;

The Intra-regional Market was the second accounting on average for 17.2 percent;

The EU was the third major market accounting on average for 15.1 percent of total exports.

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Total Trade –CSM Period CARICOM

2006-2011 Total exports while increasing rapidly from

2006 to 2008 suffered set backs and grew at an average rate of 1.0 percent;

For 1973-2005, the average growth rate was 8.2 percent;

Total imports in this period also grew at a smaller rate than in the period 1973-2005, 7.9 percent compared to 6.2 percent for the CSM period.

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CARICOM

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

-

5,000

10,000

15,000

20,000

25,000

30,000

CARICOM's Total Imports and Exports: 1973-2011

Imports us$Bn Exports us$Bn

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CARICOM’s Intra-Regional Trade

CARICOM

1973-2011 The average annual growth rate in intra-

regional exports for this period was 8.8 percent;

Intra-regional exports to total exports was 14.8 percent;

In value terms, Intra-regional exports moved from US$0.1 Bn. in 1973 to US$2.6 Bn. in 2011, approximately 30 times the value in 1973.

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CARICOM’s Intra-Regional Trade

CARICOM

1973-1981 Significant increase occurred in intra-

regional exports expanding at an average annual growth rate of 22.8 percent;

The proportion of Intra-regional exports to total exports averaged 9.0 percent;

Evidently for the early period of the Community there was significant growth.

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CARICOM’s Intra-Regional Trade

CARICOM

1982-2005 The average annual growth rate for this

period was 6.7 percent;

The proportion of intra-regional exports to total exports stood at 15.6 percent;

While there was a slowing down of the rate of growth, the proportion of intra-regional exports to total exports increased as compared to the earlier period 1973 to 1981.

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CARICOM’s Intra-Regional Trade

CARICOM

2006-2011 Period of the Global financial and economic

crisis;

Average annual growth rate was -2.0 percent reflecting the severity of the crisis;

However prior to this period, 2002-2008, there was phenomenal growth – average annual growth rate of 24.8 percent;

The proportion of intra-regional exports to total exports was 15.5 percent, comparable to the 1982 to 2005 period (15.6 percent).

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CARICOM

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

0.0

500.0

1000.0

1500.0

2000.0

2500.0

3000.0

3500.0

4000.0

CARICOM's Intra-Regional Imports and Exports: 1973-2011

Intra-Regional Imports Intra-Regional Exports

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Highlights of Intra-regional trade

CARICOM

Trinidad and Tobago was the dominant exporter accounting for 71.3 percent of total intra-regional exports for 1973 to 2011and 80.0 percent for 2006-2011;

Jamaica was the top importer accounting for 31.2 percent of total intra-regional imports for 1973 to 2011 and 36.6 percent for 2006 to 2011;

Barbados was the second dominant importer accounting for 15.5 percent of total intra-regional imports for 1973 to 2011 and 12.6 percent for 2006 to 2011;

There was less concentration in the distribution of imports among Member States compared to intra-regional exports

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Highlights of Intra-regional trade cont’d

CARICOM

Mineral Fuels, Lubricants and related materials was the top commodity exported in the intra-regional market accounting on average for 48.8 percent of intra-regional exports;

Food was the second highest commodity exported accounting on average for 15.6 percent of intra-regional exports for the entire period;

Manufactured Goods was third with an average of 11.6 percent for the entire period;

For the CSM period, these three commodities were also the highest on average and in the same order.

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Extra-regional Exports CARICOM

The growth of extra-regional exports was lower for the CSM period (1.6 percent) compared to 7.9 percent for the period 1973-2005;

The USA was the major market accounting on average for 52.6 percent of extra-regional exports for the entire period and 55.5 percent from 2006 to2011;

EU ranked second for the Region’s extra-regional exports accounting on average for 17.9 percent for the entire period and 16.5 percent from 2006 to 2011 ;

In 2011, exports to the EU stood at US$2.7 Bn. And to the USA US$8.6 Bn

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Extra-regional Imports CARICOM

1973-2011 The average annual growth rate of extra-regional

imports was 7.5 percent;

The USA was the major source of CARICOM’s imports (40.5 percent);

The EU was the second major source of imports (15.1percent);

The Latin American Integration Association (LAIA) followed as the third major source of the Region’s imports (14.4 percent);

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Major Commodities -Exports

CARICOM

Mineral fuels, Lubricants and related materials was the top commodity exported to the extra-regional market accounting on average for 48.1 percent;

Crude materials, inedible, except fuels, was the second highest extra-regional export accounting for 15.1 percent ;

Chemicals and related products, not elsewhere specified was next in line accounting on average for 13.7 percent;

Food exports ranked fourth accounting on average for 9.9 percent of total extra-regional exports

Mineral fuels, Lubricants and related materials was the top commodity exported to the USA;

Food was the top commodity exported to the EU followed by mineral fuels, lubricants and related materials

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Major Commodities –Imports

CARICOM

Machinery and transport equipment was the top commodity imported from extra-regional sources and on average accounted for 27.9 percent;

Mineral fuels, Lubricants and related materials ranked second on average with 19.6 percent;

Manufactured goods classified chiefly by material ranked third and on average was 15.4 percent;

Food ranked fourth on the list of commodity imported 12.2 percent.

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Some Critical Commodities

CARICOM

CARICOM’s imports of Food expanded from US$0.2 Bn. in 1973 to US$1.8 Bn. in 2006 and US$2.8 Bn. in 2011 at an average annual growth rate of 6.8 percent for the entire period;

CARICOM’s exports of Bananas moved from USS$71.0 Mn. in 1985 to US$39.0 Mn. in 2011;

The Region’s exports of Sugar increased from USS$220.3 Mn. in 1987 to US$ US$351.7 Mn. in 2006 decreasing to US$273.7 Mn. in 2011;

Rice exports expanded from USS$13.3 Mn. in 1985 to US$70.6 Mn. in 2006 and to US$209.5 Mn. in 2011.

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Conclusions CARICOM

Generally, Intra-regional trade has been positive with significant growth in the early period of the integration movement and with the share of intra-regional to total trade increasing and remaining fairly stable on average despite the external shocks;

Exception to the above was the 2006 to 2011, period of the global crisis ;

There was also phenomenal growth in intra-regional trade in the period 2002 to 2008;

Trinidad and Tobago was the Region’s dominant exporter;

Mineral fuels was the top product exported intra-regionally;

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Conclusions cont’d CARICOM

Jamaica and Barbados were the top intra-regional importers;

For extra-regional trade the Region was in deficit with third states;

The Region’s top trading partner was the USA;

Mineral Fuels, Lubricant and related materials; Inedible Crude materials; and Chemicals and related products were the major products exported;

Overall exports of Sugar and Bananas have declined in 2011 while exports for rice increased;

Future analysis should focus on trade with the coming into effect of the EPA

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THANK YOU

CARICOM