Secretary's Speech

Secretary of Commerce Carlos M. Gutierrez
Caribbean Community (CARICOM) Conference on the Caribbean
Washington, D.C.

On behalf of the U.S. government, welcome to the Conference on the Caribbean. We are committed to deepening our engagement, and strengthening our trade and investment relationship.

This Summit comes during Caribbean American Heritage Month, a time when America celebrates the contribution of the 2.6 million Caribbean-Americans who live in the U.S.

The United States and CARICOM have a solid economic relationship:

• $19 billion in two-way trade between the U.S. and CARICOM member countries (2006).
• The U.S. imported $10.4 billion from CARICOM countries in 2006, more than from Spain.
• Between 2004 and 2006, U.S. imports from CARICOM countries increased by more than 26 percent, while exports increased by more than 32 percent.

Last week in Atlanta we held the inaugural Americas Competitiveness Forum, or ACF.

I saw many of you there, and had the opportunity to meet with a number of senior Caribbean officials. We had good opening discussions and plan to continue the dialogue on how the U.S. and CARICOM can work together to realize the goals of the ACF.

Competitiveness is a timely topic for the Caribbean.

Serving as a backdrop to the Summit this month is the establishment of a CARICOM Single Market in 2006 and plans for full economic integration in 2008.

In terms of trade with the U.S., the CARICOM Single Market and Economy (CSME) serves as an opportunity to strengthen ties and better prepare the region for the global economy.

Your drive towards the CSME recognizes that the global business environment requires a strategic response.

The ACF was premised on the same fundamental goals as the CSME—improving local and regional competitiveness, growing economies, creating jobs and more prosperous societies.

It is evident to me that there are many shared challenges throughout our Hemisphere. One of the unique aspects of last week’s forum was the opportunity to take away best practices from the public and private sectors, and put them to use in other places.

For example, Mr. Ivan Andersen, who attended the Forum, is managing director of the National Road Operating and Constructing Company of Jamaica.

That is a private company in partnership with the Government of Jamaica in highway construction and maintenance projects, including Highway Project 2000.

The project is a public/private partnership which has been very successful for Jamaica. And there were dozens of similar examples through the hemisphere—in Mexico, Chile, Brazil—and some of their case studies for success are very applicable for the Caribbean.

Small businesses are the backbone of every economy.

In the U.S., small firms employ half of all private sector employees and account for 97 percent of all U.S. exporters, and 29 percent of all goods exported.

One of the pillars of competitiveness outlined last week focused exclusively on small business development and growth, critical elements for the Caribbean economy.

Sparking and sustaining innovation, creating solutions in education and workforce development, and designing successful global supply chains are issues of critical importance to all economies, but even more so, to the smaller ones.

Technology and the growth of service industries fundamentally change global economies. We are all faced with new challenges, but also new opportunities.

I was encouraged by discussions last week on diversifying beyond textiles and sugar trade, to tourism and financial services—industries which will help the Caribbean better compete in the global economy.

Technology makes geography less of an obstacle to the trade of good and services. But governments must create an environment for business to flourish so societies can reap the benefits of this opportunity.

CARICOM Nations have taken some very positive steps forward. The World Bank’s Doing Business 2007 report highlights significant progress in business regulations such as business start-up, legal rights of borrowers and lenders, bankruptcy procedures and contract enforcement. That's the positive.

But on the flip side, the report also highlights that countries have diverged on implementation of these regulations resulting in wide regional differences, for example, on the number of days to start a business.

Clearly, there is a lot of good news, but still much to be done.

The U.S. is committed to helping the region take more positive steps forward. There are a number of programs we have in place including CBI, GSP and capacity building programs, which create opportunity and an environment for progress.

The best thing the region can do is create a stronger climate for business. Attracting business and investment will create jobs which helps lift people out of poverty and put them on the path toward self sufficiency.

It also helps governments generate tax revenues so they can invest in infrastructure such as roads and broadband technology, and educate their people.

Education is truly the great equalizer. Knowledge creates opportunity, eliminates class and race barriers, and gives communities hope for a brighter more prosperous future.

These are goals which the U.S. shares with the countries of the Caribbean. We believe in the great growth potential of the Western Hemisphere. The Caribbean plays an integral role in that growth

You know better than I the unique challenges that the geography of your nations present. But the U.S. is committed to an ongoing dialogue, and we are optimistic that the changes we see in the global economy, present opportunities for us all.