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Agriculture: GDP, trade and employment
While the modern Caribbean economy was formed as a colonial agricultural enterprise, the sugar plantation that characterised the Region for much of its early history is no longer nearly as important today. Only six countries presently export sugar. Further, agriculture accounts for 10 percent or more of GDP in only five countries. These are, in descending order: Guyana (39 per cent), Belize (21 per cent), Dominica (20 per cent), Suriname (18 per cent) and St Vincent and the Grenadines (12 per cent). Meanwhile food exports account for 20 per cent or more of total exports in nine countries. In Belize, St Vincent and the Grenadines, and Grenada, the figure is as high as 80 per cent and more.
In Trinidad and Tobago, because of the importance of oil and natural gas exports, agricultural food exports represent only 5 per cent of total exports and less than 2 per cent of its GDP. At the same time the Region is a food exporter, it is also a substantial food importer! About US$1.3 billion or about one-sixth of the Region's total import expenditure is spent on food. This is one-third more than the total value of its agriculture exports. In all the countries of the Region food imports account for 10 per cent or more of their GDP. In the case of Grenada, St Lucia, St Vincent and the Grenadines, and Suriname the import figure exceeds 20 per cent of their respective GDP.
Caribbean agriculture is a significant employer of labour. Recent estimates show that the labour force in agriculture is 25 per cent and above for six countries. Indeed in two of these, Belize and Dominica, it is almost one-third. Even in Trinidad and Tobago where agriculture accounts for a small fraction of GDP and exports, it still employs as much as 12 per cent of the labour force. It should be noted that in Suriname, Barbados, and Antigua and Barbuda the share of the agriculture labour force is as small as 4-6 per cent.
Crop production
The principal agricultural exports are bananas, and sugar (roughly one-third each) along with rice (8 per cent). Other significant export products include coffee, cocoa, spices, citrus, and non-traditional items such as cut flowers, ornamentals, and some fruits. The principal products (bananas and sugar) are exported from the Region under special marketing arrangements, mainly with Europe.
Sugar is exported under the Sugar Protocol of the original Lome Convention, the African-Caribbean - Pacific Group of Countries and European Union Agreement (ACP-EU Agreement), which was recently replaced in June 2000 by the Cotonou Partnership Agreement. Bananas had a special set of marketing arrangements under a separate protocol, which was successfully challenged in the WTO by the USA and Central American banana producers. After considerable subsequent changes the marketing arrangements have now moved to an apparently final settlement.
The special marketing arrangements that protect the Region's exports of sugar and bananas are essential for their survival. This is because on average, their costs of production are considerably in excess of their world market prices. Since the coming into force of the WTO, sugar and bananas have come under considerable external pressure because of this. We shall return to this topic next week, as it highlights some of the conflicts inherent in the new agricultural trade regimen the WTO/AOA Agreement has been institutionalising.
Other features
There are other important aspects of the Region's agriculture that should be noted. One is that some of the export products are both consumed locally and exported by producers to other territories within the Region. As we shall see next week these amounts can account for a significant share of both markets, even in the case of the most export oriented of our agricultural products - sugar. This qualifies the export dependence of these crops and require serious recognition in strategies for going forward.
Second, there is a significant domestic agricultural sector that is geared to local markets in the Region. Production here is concentrated in root crops, fruits, and vegetables. Some of this 'local' agricultural produce is also exported on a small scale by air and schooner within the Region. The products are under threat from imported products in the form of as juices, concentrates and syrups.
Third, there is an unmeasured, but economically very important level of cultivation of illegal narcotic crops, particularly ganja/marijuana. Because it is illegal no effort has been made to measure/ record/monitor the supply/ demand for this crop in the Region. However, based on hearsay it seems to be a significant export crop and major contributor to rural livelihoods in some territories of the Region. In an age where crime is high on the agenda of international and national action this is a matter of grave concern.
Fourth, while over the years the relative decline of agriculture has been noted, it still remains a significant factor not only in employment as we have clearly seen, but in foreign exchange earnings and as a means of providing rural livelihoods.
It is also a sector whose importance goes beyond its economic dimensions since it forms the bedrock for the survival of authentic West Indian culture.
The decline of regional agriculture has been associated with the rapid development and growth of the services sector - mainly tourism. In this sense its decline can also be seen as the consequence of deliberate policies aimed at diversifying the regional economy away from its mono-crop dependence on sugar.
The major concern however, is that the linkage between tourism and domestic agriculture is extremely weak. At present the bulk of the agricultural produce consumed by tourists is imported and the expansion of the tourist industry has failed to fuel the growth of a domestically oriented agriculture.