AN ASSESSMENT OF THE AGRI-FOOD DISTRIBUTION SERVICES INDUSTRY IN CARICOM

The Caribbean Community (CARICOM) is involved in negotiations on trade in services with a number of negotiating partners. The most important ongoing negotiation seeks to develop a new reciprocal arrangement with the European Union (EU). Linked intricately to this is the completion of the Free Trade Area with the Dominican Republic through inclusion of commitments on access for trade in services and investment. On the horizon are possible negotiations between CARICOM and the United States and Canada. Furthermore, the moribund World Trade Organization (WTO) negotiations also must be kept in view given the possibility, however unlikely, of resuscitation. Distribution services are likely to be a key part of all these negotiations. At the same time, information on the distribution services sector in the Caribbean is limited, and this constrains effective CARICOM participation. The agri-food distribution services sector is particularly important to CARICOM. The Food Distribution Service industry in CARICOM has over 17,000 firms, employing 112,000 people and generating sales of US$ 5.6 billion per annum. It plays an important role in delivery of food consumer choice and prices. It is one of the largest components of the services sector, is vital for national development and has important linkages with other key export sectors such as agricultural production, food manufacturing, and tourism. Furthermore, it holds the possibility for generating trade in services and goods and producing new foreign exchange revenues for Caribbean economies.