I do agree with Mr. Gordon absolutely that there should be the same level of concern for the FTAA and SICA for Trade in Central America; his point is even more valid considering that our third highest imports are from the Central American region in 2004 196.76 (million $) and our exports to such were a mere 4.17 (million $) of our total exports.
However, the focus is on CSME because of the time frame of its implementation. I therefore highly respect Mr. Gordon?s position and would like to comment on the reason for the referred expressed raised apprehension and concern of the implementation of a critical issue such as the CSME and our readiness as a nation as per the following points.
1. Even though our exports to CARICOM over the last four years show a continuous increase from 19.59 (million $) in 2000 to 46.64 (million $) in 2004 and our imports show a decrease from 29.4 (million $) in 2000 to 26.39 (million $) in 2004, these figures are miniscule when compared to the much larger economies of Trinidad and Tobago, Barbados and even Jamaica. It is safe to assume that ?low productivity? or lack of productivity has contributed to the lack of competitiveness and small significant export value of Belize?s goods and services.
2. Therefore, at the regional level, it is only rational that one be concerned about Belize?s weak export performance and why it is at the heart of apprehension and concern on whether this nation can overcome its anemic export record, and if not, then how ready are we; or what purpose will extending our markets to the CARICOM by our participation in CSME offer.
3. Current conditions of economic frailty and little evident prospects for overcoming non-competitive performance will expose the Belizean economy to still greater displacement of local production with no greater ability to expand Belizean exports. The trade gap would widen and the crisis in the economy can worsen with the CSME under these conditions.
Consequently, in this non-competitive scenario, thus the concern in our readiness for CSME which may result in little or no value to the future prospects of development of the Belizean economy. Rather, it would be safe to extrapolate that indeed it could be detrimental by opening the door wider to greater imports without compensating exports.
However, no misinterpretation should be connoted, as this would be not in keeping with the reality of today?s global trade environment. We cannot stop change but simply just be prepared for it. Therefore, we must face the fact and be very conscious of the current level of trade between Belize and our CARICOM partners and likewise be conscious of Belize?s productivity levels. Any reasonable person would agree that everything must be done to increase our trade output and increase our level of productivity. Simultaneously, our involvement in the CSME should compel the productive sectors to provide more goods and services at competitive levels, if they are going to survive. This is not only true of Belize?s involvement in the CSME but also of the Free Trade Areas of the Americas (FTAA) and other free trade agreements in which CARICOM is engaged. The bottom line is safety nets to protect our small businesses and capital availability for their readiness, training of our human resources to address the vulnerability of our labor sector; and many other strategies in all sectors which all should lead to increase in productivity and equalizing our competitiveness and level of readiness.
One more point, Mr. Gordon I would humbly recommend you look up literature on Nash?s Game Theory on competitive strategies (what I am working my dissertation on) or I would be delighted to talk some more over a cup of coffee and a game of chess on ?competitive strategies? where one does not focus on your opponent?s strengths but on their weaknesses, thus the emphasis on only the disadvantages of CSME. God bless.
(Signed) Yasmine Andrews