Consultation on the Benefits of and Requirements for Successful

Exporting

Presented as a Component of the ‘Export Competency Development Project’.Facilitated by

Mr. Fitzroy JamesNovember 10, 2008 at the Conference Room of the Grenada Bureau of

Standards

Perspective• ‘The members of the OECS have no option but to

rely on and be open to the outside world for their survival and prosperity. They do not have the capacity to produce even a significant portion of the range of capital and consumer goods that their populations require …. If the goods they consume are to be obtained from abroad, then foreign exchange to pay for them must be earned through … exports of goods and services. …’ Edwin Laurent – Introduction to Document: Understanding International Trade - The trading system from the perspective of the Eastern Caribbean (2006)

OBJECTIVEOBJECTIVE

• To highlight the current state of exports from Grenada , the need to strengthen and diversify the export base to promote greater economic growth, and the requirements for successful participation in international exporting.

OutlineOutline

• Contribution of Exports to Grenada Economy and Trends;

• Key components of our exports;• Markets currently served;• Benefits of Exporting– Economic– Social

• Requirements for Successful Importing– Understanding trade policies;– Resources – Capacity

Grenada – Export Trend

Contribution of Exports to EconomyContribution of Exports to Economy

Key Exports - 2006Key Exports - 2006

Export Categories

Direction of ExportsDirection of Exports

BENEFITS OF EXPORTINGBENEFITS OF EXPORTING

Foreign Exchange Earnings

• Provides foreign exchange to reduce balance of trade – (Net balance of trade amounted to EC$662,480 in

2006)

• Used to pay for imported capital and imported consumer goods

GrenadaGrenada

Reach New Markets

99.9985% of potential consumers and users of our products live outside Grenada

Opportunity to diversify Opportunity to diversify business portfolio and business portfolio and

reduce riskreduce risk

Opportunities for Business

• Expand Customer Base, boost sales and productivity;

• Achieve the scale needed to attract investment and reach their full potential;

• Pickup new skills and expertise, and stay ahead of market trends

• Become internationally competitive & protect domestic business from imported competitors.

Opportunities for the Country

• Create jobs, and work for suppliers to the exporters;

• Promote rural development by putting money in the pockets of rural producers and creating new business opportunities in those areas;

• Promote the emergence of other business to support the export process;

• Create opportunities for the emergence of viable value-added enterprises

Exporting RequirementsExporting Requirements

Key Exporting Requirements

• Exporting is hard work and risky. Success require careful research and a thorough understanding of the domestic and export market policies and regulations.

Key Requirements

• Evaluation of your capacity and resources available to start exporting:– Product, plant capacity, understanding of the value chain; skills

available, finances• Understanding and meeting local requirements for

exporting & services available;– Compliance with Export Act; Shipping & customs services;

product pricing; packaging etc• Understanding of the targeted international market;

– Trade policies regarding targeted product(s); compliance with standards, regulations and requirements; import restrictions;

• Buyer Requirements– Product specifications, standards, trading & payment terms;

Export Readiness ChecklistExport Readiness ChecklistChecklist Question Yes No Do you currently have a well established domestic market

Do you have sufficient personnel, resources, finances and a thorough business plan to meet increased demand

Can your product or service can be modified to meet the needs of foreign markets and customers

Have you researched the local requirements, logistic and services available for exporting and determined that you can successfully export

Have you researched competing foreign products and services and determined that you can remain competitive in terms of price and quality

You have determined any tariffs or duties for your product in each target market

Have you factored transportation costs, packaging, labeling, and pricing into the feasibility of exporting your product or service

Are you and your business partner(s) equally committed to exporting

Is there a strong demand for your product or service in your target country or region

You have obtained all business requirements/authorizations for import/export purposes