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This article estimates the trade and revenue impacts of implementation of the European Union Economic Partnership Agreement (EPA) in Barbados. The simulations show that the trade and revenue impacts of the EPA in Barbados depend critically on whether the rates applied are the statutory or not. When the rates charged differ from statutory rates, overall imports are expected to rise, revenues fall and trade diverted to the European Union (EU), primarily from the USA. Conversely, application of statutory rates would result in lower imports, greater revenues and trade diverted primarily to Barbados’ other trade partners, particularly the USA. Despite the differences between both scenarios, the overall trade and revenue impacts on Barbados are likely to be small. This is likely due to the list of excluded products, which are among the most protected, and which make up a substantial fraction of all goods imported from the EU.

CARICOM countries have determined that the export of services is the platform for future development of their economies in light of the loss of preferences for their traditional agricultural exports. This paper aims to determine if services can indeed fulfill this objective for the region within the context of international export competitiveness. We addressed the following questions: Which services exports in CARICOM countries are globally competitive; what is the degree of diversification in services exports; and what is the extent of export similarity in services in CARICOM. On a whole, other than Travel Services, and to a much lesser extent, Insurance Services, very few services exports in CARICOM countries are globally competitive. Most notably, Financial Services in the region, a sector touted as one to which several CARICOM countries are looking for future economic growth and development, are not competitive. St. Lucia and Jamaica are the only countries to exhibit advantages in Computer and Information Services and Personal, Cultural, and Recreational Services respectively. Guyana is competitive in Communications Services and Royalties and License Fees and Suriname in Transportation Services, Government Services and Other Business Services. Further, there is little diversification in services exports. Compounding this problem, there is a high degree of services exports similarity. If countries in the region wish to stake their future on the performance of services, regional governments will need to put in place strategies to enhance the sector’s competitiveness.

Despite liberalization efforts, compelling evidence suggest that the region is waning in its efforts to create a sustainable development path. This research addressed key the question: Can CARICOM countries maintain positive economic growth rates in an era of increasing globalization under the same modus operandi — without meaningful improvements in their international competitiveness? Analysis of the region's state of affairs reveals concerns regarding the measurements and levels of competitiveness in trade, and a need for compelling swift action. Comprehensive policy reform which enhances regional competitiveness should be the primary role for governments as they embark onto an alternate sustainable development path.

This paper analyses the competitiveness of eighteen small island developing states (SIDS) over the period 2000–2007 employing the technique of revealed comparative advantage. We find that most SIDS had at the very least a weak comparative advantage on average. Of particular note, the results indicate that competitiveness in most SIDS increased over the sample period. However, in spite of their improvements, none of the countries at any point in time displayed a strong comparative advantage. This would then call for a need for policy makers in SIDS to further upgrade their tourism products in order to improve competitiveness and sustain tourism.

A lack of growth remains a major concern for Caribbean countries. Private sector development has been identified as vital in addressing this problem. Innovation, a necessary condition for competitiveness, is a key channel through which the private sector can help to stimulate growth. An analysis of innovation at the firm level for Caribbean manufacturing and services sectors shows that patent rights, the level of domestic sales, collaboration for innovation purposes, innovation intensity (that is, the efficiency with which innovation funds are managed), availability of technology, knowledge about new market trends, domestic sales, and the size of the workforce are critical to the innovation process in both sectors. Several differences also exist. Innovative service firms are older, in contrast to manufacturing firms, which tend to be younger; foreign ownership is key for service firms; and both types of firms face different obstacles to innovation. Policymakers should tailor policies that take such differences into account.

This paper assesses Barbados' competitiveness within the EU market in light of its recent signing of an Economic Partnership Agreement (EPA) with the EU in 2008. Using SITC data from 1992-2006, indices of revealed comparative advantage (RCA) were calculated. We found that Barbados possesses comparative advantages in Live Animals; Raw Sugars, Beet and Cane; and Spirits. However, policies such as the EU's Common Agricultural Policy (CAP), stringent sanitary and phytosanitary requirements, onerous rules of origin and non-tariff barriers including technical barriers to trade, threaten to undermine these advantages. These developments strongly suggest that Barbados must move agriculture up the value chain and increase value-added, as well as integrate it more fully with other sectors of its economy. Greater attention must be focused on countries in the EU other than the UK, if full advantage is to be taken of the EPA, as the UK market is already mature. There is evidence that export opportunities to these countries exist in other commodity groups (Fuels, Lubricants, etc.; Animal, Vegetable Oils Fats, Wax; Chemicals, Related Products; Manufactured Goods). When these issues are placed within the context of Barbados' history of weak capacity to take advantage of the market access opportunities available from their trading arrangements, the overarching challenge for Barbados is one of effective market access. This will require, among other things, a capable export promotion agency. The export of non-traditional commodities should be promoted, and greater support, perhaps in the form of incentives, should be provided to large firms that are not yet exporters to encourage them to look beyond the domestic market.