Madam Speaker, I stand before you today to acknowledge the importance of the economic relationship between the United States and the Caribbean and to enter into the Record an article from the Carib News by Tony Best entitled ``A Picture of…
Madam Speaker, I stand before you today to acknowledge the importance of the economic relationship between the United States and the Caribbean and to enter into the Record an article from the Carib News by Tony Best entitled ``A Picture of U.S.-Barbados Trade.''
For many years, the United States has cultivated a trade relationship with the Caribbean that goes far beyond rum. As a result, both the U.S. and the Caribbean have benefited. In recent years, trade in the areas of natural gas, garments, seafood, sodium hydroxide, peroxide, and textiles are noteworthy.
A focus on Trinidad and Tobago is particularly important because Trinidad and Tobago is an abundant energy producing nation with 60 percent of the oil reserves in the Caribbean. The U.S. receives the majority of its natural gas imports from this resource rich nation and imported over $1.7 billion of various energy commodities in 2005. That is remarkable.
In turn, the U.S. has exported approximately $491 million in industrial commodities such as computers, cell phone transmission equipment, and lab furnaces, just to name a few, to Trinidad and Tobago.
Another key trade area is with textiles. The nation of Haiti exported $169 million in garments, while the U.S. reciprocated with imports of $124 million.
The Caribbean U.S. trade relationship continues to grow and provide mutually beneficial benefits for both the U.S. and the Caribbean nations.
A Picture of U.S.-Barbados Trade
(By Tony Best)
How solid is your knowledge of U.S.-Caribbean trade? To
find out take the trade test.
First question: Name the Caricom state which has a whopping
$6 billion trade surplus with the U.S.?
Second query: Identify the country which exports tens of
millions of dollars in live crustaceans--mostly aquatic
species with a hard shell and many legs, such as lobsters,
crabs and shrimp--every year but ends up with a $1 billion
deficit with the U.S.
How about the nation whose beer exports went through the
roof but its garment exports have fallen sharply in recent
years. At the same time, this country bought large amounts of
sodium hydroxide and peroxide from the U.S.
Then there is the coastal state, which often sells more
sweaters, pullovers, vests and other garments to the U.S.
than it buys American made T-shirts and tank tops?
Finally, list the island whose Cricket World Cup
construction could boost its trade with the U.S.
If you identified Trinidad and Tobago as the Caribbean
nation, one of the 16 Western Hemisphere nations with a
healthy trade balance with the economic giant next door, you
would be right on the money. But if your answer about the
exporter of $45 million in lobsters and crabs to Florida and
other parts of the U.S. as the Dominican Republic you would
be away off base. Actually, the country was the Bahamas.
On the other hand Jamaica's textile industry was not a
strong exporter in 2005, the latest year for which there was
trade data. Exports of Jamaica-made garments plunged to $55.5
million down from $82 million the year before. However, it
did export $23.5 million in beer, up by 82 percent over 2004
but bought $113 million in sodium hydroxide and peroxide, a
119 percent jump. It exported 60 percent more aluminum ores
and concentrate to the U.S. in 2005 than it did in 2004.
Those exports amounted to almost $69 million.
Like Jamaica, Haiti exports large amounts of textiles but
unlike its Caricom partner, the French-speaking republic
exported almost $100 million more in garments to the U.S.
than it bought, $169 million in exports as compared with $124
million in imports of T-shirts, tank tops and knit or
crocheted items. But the U.S. turned around and sold an extra
$52.4 million in miscellaneous knitted or crocheted fabrics
to Haiti.
Barbados, which will play host to the Cricket World Cup
final in April, is experiencing a construction boom and
analysts believe the major sporting event could trigger more
trade with the U.S.
The picture of Caribbean-U.S. trade was sketched from U.S.
Census Bureau data and published in a guide on U.S. trade in
the Western Hemisphere distributed by World City, a journal
that emphasizes global trade.
What the figures and analyses show, according to trade
specialists, is that as Caribbean nations continue their
efforts to diversify their economies, export trade with
the U.S. hasn't come close to reducing the dominant role
played by the U.S.
Energy-rich Trinidad and Tobago is by far the most
successful Caribbean exporter and that's attributed to the
fact that the twin-island nation is the largest natural gas
supplier to the U.S., which bought $3.3 billion in liquefied
natural gas from the ethnically diverse country. Trinidad
controls 60 percent of Caribbean's oil reserves. In 2005, for
instance, it sold $3.3 billion in petroleum gases to the
U.S.; $1.2 billion in ammonia; $1.2 billion in crude oil;
$972 million in non-crude oil; $714 million in acyclic
alcohols; and $101 million in nitrogenous fertilizers.
On the other side of the trade ledger, the U.S. exported
almost $250 million in machinery to Trinidad, over $46
million in electrical equipment for line telephony; $36
million in computers; and $29 million in ``transmission
apparatus for cellular phones. Add another $28 million in
industrial or lab furnaces and ovens; $84 million in low
value shipments; and $18 million in iron or steel tubes and
pipefittings and it would become clear that Trinidad and
Tobago's industrial base is expanding.
In much the same way that Jamaica's oil imports from the
U.S. skyrocketed to unbelievable levels in 2005, Barbados saw
its refined oil imports rise by 127 percent, going to almost
$18 million.
In the end, Barbados sold a mere $32 million in goods to
the U.S. while it imported close to $400 million. Its deficit
with the economic colossus in the north was $360 million.
Between them their trade rose by 10 percent, reaching $424.7
million.
Guyana was another Caribbean state whose trade with the
U.S. rose in 2005. Exports went up marginally, by less than
two percent but the amount of U.S.-made goods jumped by 26
percent, reaching $175 million, less than half of what
Barbados bought and close to 10 percent of Jamaica's imports
of American commodities, which were valued at $1.6 billion.
Guyana's key exports were aluminum ores and concentrate
valued at just under $50 million; $32 million in live
crustaceans; and $11 million in diamonds. Interestingly, the
top U.S. commodity exported to Guyana was listed as
``charitable items,'' with a value of about $42 million.
As for Guyana's neighbors, the Census Bureau's data stated
that in 2005:
St. Lucia-U.S. trade rose by almost 40 percent in 2005,
reaching $167 million. The U.S. had a surplus of $107
million.
U.S. trade with Antigua jumped by almost 50 percent,
reaching $149 million. U.S. export went up by 51 percent and
Antigua's by less than two percent.
St. Kitts-Nevis exported $49 million to the U.S.
That was more than the combined totals of Dominica $3.3
million, Grenada $5.8 million; St. Antigua's $4.4 million and
Vincent's $15.6 million.
It exported more than Barbados did to the U.S. Electrical
supplies, transformers and other power supplies, electric
motors, generators and sets accounted for more than $36
million of the total.
The Bahamas, whose negative trade picture of $1 billion
made it Caricom's largest, was third on the list of Western
Hemisphere countries with large trade deficits.
Barbados was fourth on the trade deficit ridden partners of
the U.S. followed by Haiti, Antigua, Belize, St. Lucia,
Suriname, Grenada, Guyana, St. Kitts-Nevis, and St. Vincent.