Project to help reduce barriers to trade

A regional project launched yesterday is intended to reduce barriers to trade and will aid fledgling manufacturers and other exporters.

That’s according to Daniel Best, Director Projects at the Caribbean Development Bank.

He made the comments while delivering remarks during the virtual Launch Strengthening of the Regional Quality Infrastructure Programme in Barbados, Dominica, and St. Kitts and Nevis, while noting that the majority of the aforementioned businesses fall into the category of micro, small and medium enterprises (MSMEs).

Best said that the project is a targeted intervention, promoting inclusive growth and sustainable development by stimulating commerce, enhancing economic integration and deepening co-operation. He stated that it is the second regional project approved for implementation by the CARIFORUM-EU Economic Partnership Agreement (EPA) and CARICOM Single Market and Economy Standby Facility for Capacity Building.

“The project’s activities will directly impact local expertise and resources at specialised labs providing enhanced measurement and calibration services at designated facilities in participating countries. Further, this project will add value to local business processes by significantly decreasing the costs of metrology and calibration services for entrepreneurs requiring testing services at labs managed by agencies represented here today,” he indicated.

Best’s comments came as he noted that the MSMEs remain a major player in regional economies, contributing on average, 50 per cent of gross domestic product (GDP) and creating 45 per cent of the jobs in our region. He added that over 60 per cent of exporters and 40 per cent of exports in the Bank’s Borrowing Member Countries (BMCs) also originate from the MSME sector, which also accounts for nearly 70 per cent of GDP.

“Several assessments have pointed to a number of constraints faced by our MSMEs, including the need for the enforcement of product quality, the provision of technical support and the development of regional innovation systems. This necessitates increased focus on trade facilitation, public-private sector collaboration and capacity building at institutions,” the CDB official said.

Best added that the Standby Facility is effectively implementing several of those recommendations through projects such as the one launched yesterday, and many seek to treat with quality infrastructure in CARICOM and CARIFORUM. He said that at the Bank, the MSME sector remains a critical area for strategic and focused attention in ongoing efforts to eliminate poverty and inequality.

With that in mind, he said the CDB recognising the powerful social, economic and environmental role of MSMEs, will continue to craft support programmes for its BMCs.

“Our Private Sector Development Policy and Strategy and robust MSME work programme are shoring up the sector’s development and catalysing its export capacity. The current Standby Facility project also offers another unique opportunity to engage the sector and grow economies in response to current limitations,” he said.

The Director of Projects made the point while indicating that there is a link between quality, competitiveness, economic responsiveness and resilience and he argued that our ability to overcome current impediments to trade including non-tariff barriers and reshape our economies is being highlighted today through this project.

“I encourage all beneficiaries to seize this opportune moment as the region pilots its way, along with the rest of the world, through uncharted social and economic circumstances. We are capable of refashioning our economies by enhancing our trading arrangements and with the support of the Bank and partners like the EU we are on our way to doing so,” he stated. (JRT)