Transportation & Logistics

Overview: Trade Facilitation in the Caribbean
Given that Caribbean countries are very dependent on international trade for the development of their economies, it is imperative that customs operations are as efficient as possible so as to facilitate trade. While we acknowledge that the shortage of capital contributes to the lack of improvement in customs practices and port technology, we recognize that there are also organizational impediments that can be modified using available resources. This includes inadequate communications for intra-agency control, limited adoption of e-business practices, regulatory shortcomings and insufficient training.

These hindrances have a direct cost on small and medium businesses in the Caribbean. Delayed release of cargo acts as a constraint against delivery guarantees and obligates businesses to hold larger than necessary stock as insurance. The multiple customs standards across the region compound this effect by making the cost of doing business prohibitive for businesses entering more than one market. Uneven development among the region’s ports will inevitably result in the marginalization of those economies that struggle to keep pace with global markets.

Maintaining a robust and competitive trading position in one of the world’s largest markets is a fundamental goal towards creating greater economic development and improved welfare in the Caribbean Basin. However, competitiveness in the international marketplace necessitates that these organizational barriers to trade facilitation be addressed so as to ensure that the Caribbean can take full advantage of international trade.

Recommendations
One of the main solutions is to increase the “speed to the market.” Cargo turnaround from port and customs agencies increases the competitiveness of businesses through immediate response to customer demand. Rapid clearance also permits businesses to maintain low inventory and re-allocate capital to other areas of business development. The increased competitiveness that results makes the Caribbean a more attractive environment for investments and strengthens the entrepreneurial underpinnings of the Caribbean for increase prosperity.

Other recommendations include:

• The adaptation of the World Customs Organization standards by all Caribbean countries and the development of regional training frameworks in conjunction with the World Customs Organization with the participation customs authorities of the region.
• Identifying bottlenecks in customs processes that prevent the timely arrival of goods to markets and existing technology with the aim of creating a common dialogue on paperless air & sea port & customs transactions and highlight financial means that would support an integrated regional approach to customs.
• Greater emphasis on logistics performance rankings and the facilitation of change that embraces efficient regulatory environments to promote growth.
• Engaging the Caribbean Basin transport sector entities, regional organizations and customs authority officials in a dialogue on customs facilitation.
• Investigating the potential of the CSME the movement of goods between the United States and the smaller countries of the hemisphere and identifying improvements needed in the customs process to maximize benefits of this agreement.
• Engaging the private & public sector leadership in dialogue on efficient means of movement of goods inter/intra regionally. 

CCAA continues to address these issues at our annual Miami Conference on the Caribbean Basin where businesses and government representatives discuss these and other related issues to development of the region. In regards to transportation and logistics, we recognize that reduced time for the clearance of goods, transparency and increased communications between the private and public sectors can create supply chains that are more efficient and integrated to give every means of support to increase competitiveness and facilitate trade in the region.  

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