EXPORT BULLETIN

Special Bulletin of the Office of Trade Negotiations (OTN)

ISSUE # 3 February 2010 |1
CONTENTS
Trade Overview Trade Overview P.1
In 2008, the Barbadian economy spent US$1.3bn more in merchandise imports Exports Overview P.2
(i.e. goods) than merchandise exporters earned. The Barbados economy
continues to face serious growth challenges including an ever expanding
international trade deficit. The problem of the ballooning trade deficit is
compounded by the fact that even with revenue from the services sector, the
economy still spends more on imports than it generates from export sales. This
ultimately has significant implications on international debt, and provides a
strong motive for the promotion of viable exports. This bulletin attempts to
provide information on some of those viable export opportunities.

Fig. 1: Barbados’ merchandise trade performance (US$000)

BARBADOS

Official Name: Barbados

Area: 431 sq. km. (166 sq. mi.)
Capital: Bridgetown (pop. 30, 000)
Population (2005 UN estimate)
272, 000
Currency : Barbadian Dollar
Terrain: generally, low‐lying, with
highest elevation 405 m. (1, 330 ft.)
Climate: Semitropical
Airport: Grantley Adams
International Airport
Source: tradeMAP database, retrieved January 20, 2010
Source: OTN Information Unit 2010
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Between 2001 and 2008, merchandise export sales increased by 8.3% annually to expand from US$260mn to US$454mn.
Between 2001
Merchandise and expenditure
import 2008, merchandise export
grew slower thansales increased
the growth by 9.3%
in exports. from 2001 and 2008, merchandise import
Between
US$376mn to US$702mn. Merchandise import expenditure grew slower than
expenditure grew by 7.3% annually, however, the merchandise trade deficit still the expanded from US$808mn in 2001 to
growth ininexports.
US$1.3bn 2008. Between 2001 and 2008, merchandise import expenditure
grew by 7.7% annually, however, the trade deficit still expanded from US$1.6bn
on2007,
In 2001 Barbados
to over US$2.5bn
services in 2008. generated US$1.6bn in sales, whilst the Barbados market absorbed US$669,515 in
exporters
import spending, therefore generating an intangibles (services) trade surplus of circa US$1bn. The services surplus
however, was not adequate to address the circa US$1.3bn merchandise trade deficit which implies that there is still the
need to promote greater exports of goods and services.

Export Overview
Barbados’ exports are not adequately diversified both in terms of the products, services exported, and the markets
which are serviced. Barbados’ top export market in 2008 was the United States of America (USA). The USA accounted for
over one‐fifth the total merchandise export earnings in 2008. In 2008, other top export markets included Trinidad &
Tobago (9.5%); the United Kingdom (9.1%); St. Lucia (8.7%); Jamaica (3.9%); the Netherland Antilles (3.4%); St. Vincent &
the Grenadines (3.3%); Guyana (3.0%); Grenada (2.5%) and Antigua & Barbuda (2.5%).

The most dynamic markets for exports from Barbados between 2001 and 2008 included the Netherlands Antilles (40%
growth per annum); Switzerland (31.6%); Germany (21.2%); China (30.2%); Chinese Taipei (30.2%); Greece (70.5%); Hong
Kong (29.3%); brazil (38.2%); Malaysia (123.5%) and Turkey (62.3%). These markets could be amongst those for any
priority market penetration activities based on the strength of the growth trend. However, these dynamic export
markets are not major sources of export earnings as they jointly accounted for 7% of the total earnings for Barbadian
exporters in 2008.

The top exports are detailed below.

Table. 1: Barbados’ Top 15 Exports

1
Barbados services export earnings are concentrated in travel services (i.e. tourism). In 2007, The Bahamas earned over 65% of the total services export
earnings from travel services. Other dominant services exports included financial services, insurance, and other business services.

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In 2008, Barbados’ top 15 products generated over two‐thirds of total export earnings. Therefore, these products are
major export poles. The top 15 exports are composed mainly of manufactured products, with raw sugar cane the main
agricultural export featuring in this category. Also of interest is the intermittent export performance of hydraulic
cements, a product in which Barbados was ranked as the 13th largest global exporter with a 2% share of world exports.
Between 2004 and 2008, the most dynamic exports included light petroleum distillates (199% growth in sales per
annum); Orthopedic & other appliances, worn, carried or implanted in the body, nes (669%); waste and scrap of
aluminium (383%); wrist watches (347%); articles of aluiminium (276%); photographic, other than cinematographic
cameras (250%); insulin in dosage (236%); knitted mens or boys shirts (214%); newsprints, in rolls or sheets (211%);
footwear (202%) and windows, French‐windows and their frames, of wood (158%). These exports have potential for
diversifying the export base.

Barbados exports a number of products in which they were ranked in the top ten exporting nations in 2008. Based on
their top 10 export share, these products should be a priority of any export development programme and include
recorded magnetic tapes , width 4‐6.5mm; sails of other textile materials; turntables with automatic record changing
mechanism; woven fabric of polyester stalk fibre, 170g/m2, yarn dyed; curry; rum and tafia; wirewound variable
resistors, including rheostat and potentiometers; and stuffed toys representing animals and non human creatures.

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