Expert to explore feasibility of value-added trade strategy

Mon, Jul 21st 2014, 11:54 PM

Minister of Financial Services Ryan Pinder has brought in an international trade specialist to further the government's hope of introducing a "value-added trade strategy" to The Bahamas, which would encourage the partial manufacturing of products before global exportation as part of a global value chain.
At a press conference, Pinder claimed that the value-added trade strategy "has the potential of leveling our trade balances by simultaneously increasing our export of goods (namely value-added products) and services (for example, distribution, transportation and professional services)".
Pinder made the announcement ahead of the arrival of Dr. Sherry Stephenson, an official from the Organization of American States (OAS), who will conduct a study assessing the viability of The Bahamas becoming a part of a global value chain.
Pinder said: "Global trading trends are not supportive of a traditional industry concept of manufacturing a product from the ground up, meaning that one jurisdiction creates an entire product for export. Rather, there is a considerable demand for jurisdictions where inputs from various countries are brought together at a trade center where the production process might be advanced or completed. Such partial or finished products are then exported globally."
Freeport was specifically mentioned for having the necessary international trade logistics infrastructure for the creation of value-added trade centers.
Pinder described Freeport's logistics infrastructure as "arguably the best in the hemisphere...with the existing capacity to receive the anticipated Panamex-size ships that will arrive as a result of the expansion of the Panama Canal" as well as having the requisite shipyard repair facilities.
Pinder additionally listed the partial refinement of Brazilian sugar and poultry products as operations that could take place in The Bahamas as a way of penetrating the European market on a duty free and quota free basis, through The Bahamas' Economic Partnership Agreement (EPA) with Europe.
When asked how the strategy would fit with the country's accession to the World Trade Organization, (WTO), Pinder stated that The Bahamas experienced "tremendous support" for its accession during a recent conference in Geneva, Switzerland and a value-added trade strategy went "hand in hand with the WTO accession process" by ensuring the guaranteed right of Bahamian goods and services to access other markets.
"The government's pro-business, WTO-compliant incentive regime and the duty-free access to markets in Europe available to The Bahamas by virtue of its participation in the Economic Partnership Agreement, provide an almost perfect synergy for the business community to take maximum advantage of a value-added trade strategy," stated Pinder.
The minister also clarified that the strategy would compliment The Bahamas' current involvement with CARICOM, stating that it "works well with the regional integration plans of CARICOM without having The Bahamas committed to the CSME (CARICOM Single Market and Economy)".
Pinder and Stephenson will take part in a public panel entitled "Integrating Bahamian goods and services into global value chains" on Tuesday at 7 p.m. at the British Colonial Hilton hotel.

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