Gender & Trade

This paper is based on the definition of The Commonwealth World Bank Task Force study on Smaller Economies that recommends that factors such as remoteness and isolation, income volatility, openness, limited diversification, susceptibility to natural disasters and environmental change, poverty, limited access to external capital and limited institutional capacity, make it near impossible for small and vulnerable economies to compete effectively in the international trading system.

All the countries in the review are Small Island Developing States with small and vulnerable economies. The physical land space ranges from 344 square kilometres in Grenada to 4828 square kilometers in Trinidad. Agriculture, particularly the production of bananas, has over the years accounted for the majority of this land space. In Dominica, Grenada, St Lucia and St Vincent, rural communities account for over fifty percent of the land space.

The populations are also small ranging from just over seventy one thousand in Dominica to 1.3 million in Trinidad and Tobago.

All the countries in the study have had some preferential treatment in the markets of their former colonial administrations. Consequently, economies were based on production for export to these markets and for use in the local markets.

Since there has been the understanding and tradition of guaranteed incomes from exports, the social sector and other areas for public spending were financed from this income making the removal of preferential treatment and the guaranteed income a burden for the State to address with little or no alternatives in place.

Trade liberalization was touted and accepted by Caribbean governments as an option to improve development initiatives and bring wealth to the countries. The reality however has been that the expected financial rewards have not materialized and development initiatives have been stymied. Rather than enjoy the varied and more affordable goods and services expected, consumers have had to contend with increase costs of goods and services, low wages, uncertainty in the labour market, dumped goods, contracting economies and poverty.

The issue of agriculture is extremely important for countries within CARICOM, particularly as it relates to issues of market access, food security, agrarian reform and rural development. Even though the services sector has bypassed agriculture relative to percentage of exports, agricultural activity whether for domestic or international purposes still plays a significant role in the overall economic and social architecture of these countries. In particular, countries within the Organization of Eastern Caribbean States (OECS) are highly dependent on agricultural exports, which range from 31% to 61% of their total exports.

Dominica’s economy has been pillared on the production and export of bananas over the years. CAFRA Dominica reports that many small farmers had to abandon their holding or go into other crops to replace bananas. The downsizing of the industry has imposed a significant loss of revenue on Dominica’s economy. The population of active banana farmers in Dominica in 1994 was 4,840. The figure for 2000 stood at 2,254.

The Grenadian economy is characterized by its openness, vulnerability and its dependence on the international economy. The dominant activity was agriculture but in recent years the services sector assumed greater significance. In 1999 imports accounted for 50% of Grenada’s expenditure, 2000 – 56% and 55.8% in 2001. There are no comparable records on revenues from exports because there are no direct taxes by Government on exported products.

CAFRA St Lucia states, “Like most developing countries around the world, globalization has had multiple impacts on women at all levels of our society”. Women in agriculture and production have faced the most severe impact.

CAFRA St Vincent conducted a case study of the impact of the decline in the banana industry in St Vincent and the Grenadines. The study found that the economic significance of agriculture in St Vincent and the Grenadines had been declining over the years. This decline is evident in the reduction of land allocated to agriculture, the lessening numbers of households that are owners and managers of agricultural holdings and the reduction in crop production. The paper also quotes the Ministry of Agriculture as reporting that 17,800 acres of land or 18.6% of the total land area is used for agricultural purposes.

In 2002, Trinidad and Tobago’s economy was expected to grow by 2.7% with an inflation rate of 3.9%. These projections were based on the performance of the energy sector and the expectation that the agriculture sector would grow by 11.1% after a decline of 2.7% in 2001.

Policy Recommendations:

The recommendations consist of those made by the Caribbean Policy Development Centre and other civil society actors in the region.
1. That further liberalization in services should be curtailed to a minimum;

2. That no offers of liberalization on public social services such as education, health care, provision of water services and other social welfare concerns should be made or entertained;

3. That in the case of any further liberalization besides what already exists, appropriate recourse to safeguard measures to be determined by members, should be available to small and vulnerable countries;

4. That the existing provisions of GATS that speak to flexibility arrangements for developing countries in determining the choice of sectors and pace of liberalization should continue to be a salient and binding feature of any future GATS Agreement.5. That current negotiations on tariffs, subsidies, and domestic support measures notwithstanding, Caribbean countries shall not be required to undertake reductions in tariffs inconsistent with the stable and orderly development of their agricultural sectors. This shall include exemption from further tariff reductions and import liberalizations for a further period of ten years.

5. That small and vulnerable countries shall in respect of current and future undertakings in respect of agricultural liberalization be granted new and enhanced transition periods beyond those agreed to in the Uruguay Round Agreement; and shall be able to modify existing undertakings if it is deemed urgent and necessary in their assessments of the public good with regard to saving jobs, protecting vital industries and alleviating poverty.

6. That the provision of essential services must be considered in the context of national development.

7. That governments must seek to deliver essential services o their citizens by ensuring that they are sustainable, equitable, gender sensitive and promote social inclusion and justice.

8. That governments must retain control over essential service delivery to meet the needs of the populations.

9. That governments must work to improve the process of essential service delivery and the regulatory framework for services.

10. That the education system needs to be reviewed and higher education opportunities increased.

11. That research should be undertaken to determine what and when the emerging opportunities will appear and how they are likely to impact on people’s lives and therefore what is needed by the State and citizens to prepare for the new reality.