Published By: Nation News – July 24, 2024
AS THE REGION PREPARES to launch a new ferry service, Dr Patrick Antoine, chief executive of the CARICOM Private Sector Organisation emphasised the need to resolve pressing logistical challenges facing intra-regional trade.
During his address at the Connect Caribe stakeholders meeting held at the Lloyd Erskine Sandiford Centre yesterday, Antoine explained that resolving these issues would mean greater ability to capitalise on economic opportunities and enhance connectivity within CARICOM.
“This enormous opportunity that we see is how we link transportation, not just maritime but sea transportation, how we link the productive sectors, how we link what’s happened with the fourth industrial revolution on the internet and information technology and digitalisation,” Antoine stated.
He underscored the importance of integrating electronic commerce and leveraging the capacity of micro, small, and medium-sized enterprises to create wealth through an interconnected network.
He pointed out that one of the significant challenges was the difficulty in accessing foreign exchange to pay for traded goods. He highlighted the practical implications of this issue by referencing the agricultural trade between St Vincent and Trinidad.
Exporters from Vincentian agricultural sectors often face hurdles when trying to receive payments in US dollars after selling to Trinidad and Tobago, leading to substantial financial losses.
“When Vincentian agricultural exporters export to Trinidad and they can’t get paid except in TT dollars, and when they get the TT dollars they can’t get access to US dollars, it becomes a problem,” Antoine explained.
“Our profit margins years ago would be somewhere in the region of 30 to 40 per cent. If when you get to Trinidad and Tobago you get paid in TT dollars and you have to pay a 30 per cent premium to get US dollars, there goes your profit margin,” he added.
Antoine emphasised the need for efficient maritime transport to achieve economic growth. He noted that the lack of operations providing for less-than-container-loads in a sustained manner frustrates expansion efforts, particularly for small producers who face delays or missed shipments. This situation deters investment and hampers the region’s economic development.
He also highlighted the potential of maritime transport in fostering youth involvement in the economic sphere. However, he warned that without solving the logistical challenges, young entrepreneurs face discouragement and financial losses, which stymie growth and innovation.
He called for concerted efforts from stakeholders to create a conducive policy environment that supports connectivity and electronic commerce. He urged regional administrations to understand the importance of these initiatives and the need for collective action to drive economic momentum.
“In the discussions we’re going to have over the next day and a half, we are talking about real topics that affect real people’s lives. These are discussions about how we create wealth for our people and how we link opportunities within the markets,” he said.
Antoine emphasised the significant economic potential if the region could effectively address these logistical challenges. He cited studies indicating that an efficient transport system could lead to a threepercentage-point growth in economic development for participating countries.
“We’re doing this because it matters,” Antoine said. “We know that there are opportunities for growth within CARICOM, and we must act to realise them.” (CLM)