#Providenciales, June 1, 2019 – Turks and Caicos – A soaring increase in imports has bolstered the country’s revenues generously but the story is far more concerning when it comes to export earnings for the Turks and Caicos Islands. Statistics Department figures from 2018 expose income from exports as just barely over one percent of income from imports, and the experts have advised the Turks and Caicos to fix this problem.
The biggest export for the Turks and Caicos Islands is rum. Hard
liquor accounts for some 20 percent of the reported $10.5 million in export
earnings according to the OEC or Organisation of Economic Complexity.
The OEC website tracks countries across the globe and gives the TCI a
ranking of 210th in the world for exports. The OEC shares
that conch is the second largest export accounting for 11 percent and lobster
is third, at 9.3 percent of exported goods in 2017.
The Turks and Caicos Statistics Department reports that in 2018, the
country earned a mere $5.8 million from exports. Imports are listed as
have brought in $487.3 million dollars in 2018.
The Organization of Economic Complexity posts that export earnings have
been sinking by an annual rate of over 33 percent since 2012. The TCI
Department of Statistics reveals that exports plummeted in 2017 to a mere $2.3
million in earnings but rose significantly in 2018.
What all facts point to is that the TCI is charting a negative trade
balance. This archipelago brings in over $480 million dollars more in
goods than it sends out; at least that this the 2018 picture.
But there a Department coming for that, says Premier and Trade Minister,
Sharlene Robinson. Trade is the facet of her cabinet portfolio which gets
the least amount of attention and that fact is expected to be radically altered
within this new fiscal year.
“Following the conclusion of the COSME program the Government decided
accept and implement much of the proposed recommendations and strategies and
consequently approved the establishment of a Department of Trade, Industry and
Consumer Affairs to facilitate the development and growth of trade and business
in the Turks and Caicos Islands.”
The concept of a Department of Trade has already been ratified at the
Cabinet Level and Magnetic Media questions about this intriguing announcement
revealed that a myriad of opportunities and new legislation is coming to govern
trade in the TCI.
“The department will see three staff members; Director of Trade,
Director of Consumer Affairs and Trade Officer all are required to have a legal
background. Under the department a National Trade Facilitation Task Force will
also be established and will develop and implement a comprehensive action plan
on measures to improve and increase trade.”
Although it is very, very slow going, Brexit is influencing this
strategy by the Turks and Caicos explained the Office of the Premier.
‘The Premier and Minister of Finance Investment and Trade during her
Budget Address for the 2019/20 Fiscal Year said, “The timeliness of this undertaking is especially significant given the
anticipated impact on our access to the European market on account of the UK’s
planned withdrawal from the European Union. We have commenced discussions with
the UK Department for International Trade on participating in future UK free
trade agreements should the UK cease to be a member of the European Union”.
Initially, the work of the department will be exploration of
opportunities and adequate response to that information with the creation of a
climate of trade in the Turks and Caicos Islands. This is no easy feat.
“The department’s main aim will be to develop
bilateral trade agreements or formal arrangements with new and existing trading
partners. The Department also seeks to provide assistance to entrepreneurs and
businesses (particularly MSMEs) as it relates to laws and procedures governing
international trade including exports, rules of origin, market access etc. The
aim is also to promote consumer education and awareness and will ensure the
enforcement of the Consumer Protection Ordinance (2016).”
As for when the appointments will happen and when the requisite
legislation will be drafted, approved and passed into law, there were no
specifics. However, the Office of the Trade Minister did say, “It is
expected that support legislation will be completed and posts for Trade Officer
and Director of Consumer Affairs filled within the 2019/20 Financial Year.”
The Department of Trade, Industry and Consumer Affairs will fall under the Ministry of Finance, Investment and Trade.
#magneticmedianews
#tciexportsweak