Senior lecturer in the department of economics at The University of the West Indies, Mona, Dr Marie Freckleton, says the development of a new range of exports is the most effective way for CARICOM countries, including Jamaica, to increase export earnings and overcome the current economic crisis. Her recommendation is based on an examination of the competitiveness of current CARICOM exports in North American and European markets.

Concerned about the slow growth of goods exports and the resulting increase in reliance on tourism earnings, Dr Freckleton set out to examine solutions. Having received a UWI research fellowship, she analysed the competitiveness of CARICOM exports in North American and European markets.

Dr Freckleton notes that over the last 20 years, CARICOM has experienced little growth in its export of goods. Her research found that many of the goods the region exports lack competitiveness and are not in high demand in world markets. Approximately half of the region's exports are experiencing limited growth in demand in the markets studied. Although CARICOM receives special treatment in its major foreign markets, in that the import duties on their exports are lower than the duties imposed on some of their competitors, CARICOM continues to export mostly goods for which the demand is stagnant.

According to Dr Freckleton, the region needs to develop exports that are experiencing increasing demand on world markets. Development of new exports will allow the region to take advantage of new opportunities opening up in foreign markets, for instance, through the Economic Partnership Agreement with Europe. This strategy will enable the region to expand its export earnings.

In the case of Jamaica, Dr Freckleton conducted a survey of non-traditional exporters in order to determine the factors limiting the growth of non-traditional exports. The survey found that limited access to long-term financing and limited innovation are serious obstacles. Additionally, the exporters identified the high cost of borrowing and high energy costs as major factors restricting their ability to expand exports.

The findings of this study will be valuable to policy makers involved in developing export strategies. If the recommendation to develop new exports is implemented, it will create new employment opportunities for farmers, professionals, manufacturers and other producers. Finally, widening the range of exports will reduce the economic vulnerability created by dependence on a few exports and help to promote economic growth and development.

Dr Marie Freckleton is senior lecturer, Department of Economics, UWI, Mona and associate fellow, UWI Graduate Institute of International Relations, St Augustine.