MTI ColumnPUBLISHED IN JUNE 2005 A NATIONAL EXPORT STRATEGY : THE KEY TO SUCCESSFULLY EXPORTING OUR BEST TO THE WORLDTRINIDAD & TOBAGO HAS BEEN in the export business for a couple centuries now. Initially, our primary exports were sugar and cocoa. By the 1900s, a new cash cow was added to list - petroleum - which, within the last 40 years or so, assumed major importance in the national economy, and remains our primary export to date. Many have argued that with the advent of petroleum and petroleum products as our new cash cows, we increased our vulnerability to the vagaries of the international marketplace. To deal with this reality, over the past 30 years, successive governments have sought to reduce this risk, and have put programmes and policies in place to bring about much needed economic diversification. As a result, we have seen the Manufacturing and Services sectors grow and develop to the point where their contribution to this country's Gross Domestic Product (GDP) is substantial. And looking at the performance of the local export sector itself… For the year 2000, overall domestic exports peaked at roughly TT$26.5 billion; by June 2004, this figure fell to just over TT$17 billion. Non-energy exports increased by 20.1 % from TT$ 4.5 billion in 2003, to TT$ 5.4 billion in 2004. According to 2003 figures, the United States of America absorbed some 53 per cent of this country's exports (both energy and non-energy), with CARICOM taking in 20 per cent, Latin America seven per cent, the European Union received five per cent, and the Rest of the World purchased some 13 per cent. Why a National Export Strategy… The core responsibility of the Ministry of Trade and Industry (MTI) is the promotion and development of trade activities, with an emphasis on generating sustainable, export-led growth and development, by securing enhanced access to foreign markets for local companies. A National Export Strategy (NExS) will become one of the principal tools the Ministry will use in this regard. The National Export Strategy is intended to outline an integrated plan of action, designed to help this country gain a sustainable competitive advantage over its competitors. This action plan will outline clearly the target markets, capability requirements and priorities needed to achieve this objective. NExS will emphasize market development, including market access, export promotion, as well as the provision of market information. Ideally, the Strategy will map out a pathway to overcoming the many constraints to exporting including:
The Genesis of NExS The development of the National Export Strategy (NExS) comes on the heels of research being completed currently, on seven industries targeted by the Prime Minister's Standing Committee on Business Development (SCBD), an Advisory Committee to Cabinet. The SCBD identified these seven industries - Yachting, Merchant Marine, Entertainment, Film, Food and Beverage, Fish and Fish Processing and Printing and Packaging - because of their potential for significant employment generation and revenue earnings, and ability to assist in Trinidad & Tobago's diversification efforts away from the current dependence on the energy sector. Each industry has had a Strategic Plan formulated for it, which outlines specific activities to facilitate its further growth and development, especially in terms of export promise. To date, the Film Report has been presented and approved by Cabinet, and steps are currently being taken to establish the Trinidad & Tobago Film Company, which will be charged with implementing the recommendations within the report. The Strategic Plan on the Yachting Industry has been accepted by the Standing Committee on Business Development, and will be taken to Cabinet for approval. The remaining Industry Teams have prepared their Draft Reports, which are in the process of being finalized. Once all seven Reports are approved by Cabinet, they will serve as background data for the formulation of the National Export Strategy. Exporters must play their part… The success of the proposed National Export Strategy depends on the level of commitment and buy-in to the strategy by the exporters themselves. As such, exporters and stakeholders will be involved in the process of developing the Strategy itself. In fact, to some extent, there has been considerable participation by the business community, in the form of the Industry Teams working to create strategic plans for the targeted seven industries. These players will be critical to creating NExS. Already, the Ministry has begun working with its partners and agencies on making NExS a reality. Representatives from MTI, the Tourism and Industrial Development Company of Trinidad and Tobago (TIDCO), the Trinidad & Tobago Manufacturers Association (TTMA), as well as representatives from the Industry Teams identified earlier, have all undergone a specially-mounted training session on developing a National Export Strategy. This training was facilitated by the International Trade Centre of Geneva, Switzerland. At present, a smaller team of these persons is conducting the necessary research to develop a Draft National Export Strategy, which will be put out for comments and feedback. Once a Draft NExS has been prepared, the Ministry of Trade and Industry will host a special Stakeholders' Consultation, in order to maximize involvement and input from the exporters themselves. ?
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