Canada and the Caribbean are natural allies. Firstly, there’s the Commonwealth connection which has fostered cultural and political ties since the former British colonies first came together. The two also enjoy long-standing trade links which date back to the 18th century when the region sent its biggest exports, sugar and rum, north.
Over time this special relationship has evolved and Canada is now one of the Caribbean’s biggest tourism markets and trading partners, in addition to being a key source of development assistance. Many of the Caribbean diaspora have braved the cold weather to make Canada their home, further cementing cultural linkages and ensuring that the depth of the Canada-Caribbean connection continues to grow. The explosion of Caribbean heritage in the north has already given rise to a growing movement in Canada, as evidenced by increasingly high-profile events such as Caribana Toronto which takes over the city every summer, the Caribbean Days Festival in Vancouver, organised by the Trinidad and Tobago Cultural Society of British Columbia, and the Carivibe Ottawa Carnival which attracts thousands to Canada’s capital each year.
Trading partners
Canada and the Caribbean have made a series of bilaterial trading agreements over the years, culminating in the Caribbean-Canada Trade Agreement (CARIBCAN), signed in 1986. CARIBCAN provides for trade promotion so that Caribbean manufacturers and exporters can better target markets in Canada, as well as permitting duty-free access to market for some categories of Caribbean exports into the country.
Having hit and surpassed its 30-year anniversary, the free trade agreement has come up for discussion and renegotiation in recent years. After several rounds of talks, there is yet to be a firm consensus on the latest version of CARIBCAN, but the World Trade Organisation has granted a waiver for the deal’s preferential agreements until 2023.
The Caribbean continues to have duty-free access to the Canadian market for now, but the full potential of Canada’s role as a trading partner has not been fully exploited by regional producers or their Canadian counterparts.
Senior Trade Commissioner to Barbados and the Eastern Caribbean at the High Commission of Canada in Barbados, Georges Lemieux, works to encourage trade between 13 Eastern Caribbean countries, including Saint Lucia, and Canadian companies. He says that currently the bulk of trade flows is in agricultural and food products and, in a good year, Eastern Caribbean exports to Canada can reach CAD$ 30-50mn while Canadian exports into the region can total around CAD$ 150mn.
To boost the numbers, Lemieux believes Caribbean exporters need more support to overcome the challenging trade environment and says: “The export business is really tough. I know there are good SMEs, good exporters and good products out there that can enter the Canadian market. The problem is having the support available. Export agencies like Invest Saint Lucia and others work really hard, but it is an amazingly difficult challenge. When you get into the export business, you need to put human resources and money behind it.”
Lemieux suggests more representation on the ground in Canada, with stakeholders from the Eastern Caribbean making more grassroots links and connections so they can learn the market firsthand — as the High Commission has been doing in Barbados and beyond. “Canada is a longstanding partner of the Caribbean. We have been here in the region for a very long time and our name is very, very good. I see an opportunity to use this name to better improve our trade numbers,” says Lemieux.
“The challenge is not just here in the region; the challenge is in bringing the opportunities to the attention of Canadian companies in Canada. We have been very successful in trying to form as many connections as we can. We have taken local clients to Canada and put them together with Canadian companies. These links that we are forming will result in a closer trading relationship. I see more and more connections being made. Only good things can happen when you build these types of business relationships.”
Lemieux also notes that SMEs themselves can better prepare by doing their own research and using regional markets as a case study, saying: “SMEs have serious challenges. Before thinking of the Canadian market, they should look at whether they are exporting regionally. If they are successful regionally, chances are they will be successful in Canada.”
SMEs are often held back from expanding into exports by longstanding concerns such as lack of resources, lack of financial support and lack of technical capacity. Before Caribbean producers can make the most of Canadian opportunities, the business environment must be greatly improved, and this is another area where their northern allies can make a difference.
Next week, in the second part of this Canadian-Caribbean series, STAR Businessweek will look at how Canadian support is enabling Caribbean business and partnering for the future in the areas of energy, education and equality.
