• Saint Lucia

    Saint Lucia

    Development Challenges

    St. Lucia is progressing in its transition from an agricultural economy to a more modern economy based on higher value services, notably tourism, which is Saint Lucia's main source of income and its biggest employer. The island has an area of 620 sq km and a population of around 160,000, is considered an upper middle income country (its GDP per capita in 2009 is USD$ 12,900 ) with a high Human Development, ranked 82nd in the UN Human Development Index. The country offers an educated workforce and the best business environment in the Caribbean region, according to the World Bank . As most countries in the region, its economic situation was affected by the global financial crisis and a series of natural disasters. St. Lucia faces development challenges, including:

    • Vulnerable to external economic shocks and natural disasters (including earthquakes, tornados and droughts)
    • Narrow production base and diseconomies of scale
    • High unemployment, currently at 20%
    • Poverty and inequality, with a Gini Index of 42,6
    • Public security
    • Diversify the economy. Tourism generates almost 80% of export receipts
    • Implement good governance

     Key Trade Issues

    • As a CARIFORUM member, further implementation of the Economic Partnership Agreement between this regional group and the EU
    • As part of CARICOM, finalise negotiations for a Free Trade Agreement (FTA) with Canada
    • Further economic and commercial regional integration within Organisation of Eastern Caribbean States and CARICOM
    • Strengthen the competitiveness of its export oriented sugar and banana producers, due to the reduction of the guaranteed EU sugar price and the cut of the preferential margin for ACP banana-exporting countries set by the EU banana trade regime

    Government Priorities

    In the short term, the main priority is to continue the reconstruction of the damages caused by Hurricane Thomas in 2010,

    • Continued investment in the development of high-end tourism products
    • Develop high value agriculture
    • Development of the creative industries
    • Support for the development of the ICT sector
    • Create a new renewable energies sector
    • Develop the International Financial Services sector

    At the regional level, the Eight Point Programme is the plan of action designed by the Eastern Caribbean Currency Union in response to the financial crisis.
    The elements of the Eight Point Programme are:

    • Suitably adapted Financial Programmes for each country
    • Fiscal Reform Programmes
    • Debt Management Programmes
    • Public Sector Investment Programmes
    • Social Safety Net Programmes
    • Financial Safety Net Programmes
    • Amalgamation of the Indigenous Commercial Banks
    • Rationalisation, Development and Regulation of the Insurance Sector

     

     

    Trade and Tariff Graphs

    Graphs of the country’s export markets, its export performance in a key sector and tariffs exporters of a sample product face.
    Trademap sample Trademap sample: The map uses color codes to illustrate the relative size of different markets in the overall exports of the country shown in pink.
    Trademap sample Trademap sample: The vertical axis shows import values by key importing countries, while the horizontal axis shows export values by the country for the same sector. I.e. the country has gained market share in the case of an importing country at the bottom right of chart and lost market share for countries top left. The size of circles is proportional to market size.
    Market access map sample Market access map sample: The world map shows trade values and tariff levels for a key export product by importing countries. Color codes indicate protection levels. Red circles denote trade volumes.

    Trade and Investment Data

    Detailed data on the country’s export performance, key imports and foreign investment, grouped by product and service categories (HS and BOP).

    Trade Information Sources

    A listing of country specific print and online publications on trade related topics. Includes information from both ITC and external sources.

    Trade Contacts

    The most important trade contacts, including importers’ and exporters’ associations, trade support institutions, trade promotion organizations and institutions providing business development assistance.