Transforming Export-Import Strategies for Businesses in Response to Global Trade Disruptions: Insights from Export Barbados CEO

Businesses —especially small and medium-sized enterprises (SMEs)— must urgently transform their export-import strategies to mitigate risks from global trade disruptions and seize emerging opportunities, Mark Hill, CEO of Export Barbados (BIDC) has told Barbados TODAY.

Speaking against the backdrop of escalating US-China trade tensions, Hill emphasised the importance of securing long-term agreements to ensure economic stability.

Hill described the ongoing tariff dispute—reignited last week under the Trump administration—as a wake-up call for Barbados to address its economic vulnerabilities and pivot towards long-term, stable trade practices.

He explained that Barbados operates primarily as an import-export (IMEX) economy rather than an export-import (EXIM) one. This means local production is heavily dependent on imported goods—fuel, construction materials, machinery, and even food and beverages.

“In 2024, Barbados generated over $6 billion in overall economic activity, which was facilitated by approximately $2b in imported goods. That means imported inputs account for at least 30 per cent of the cost of doing business in the country. Everything from fuel (gasoline and diesel), raw materials, construction materials, transportation equipment, machinery, electronics, fertiliser, seeds, to even food and beverages—these are all sourced externally,” Hill stated.

“Annually, Barbados imports around $90m from China and roughly $800m from the USA, while exporting only $1.2m to China and between $80–90m to the USA. This imbalance contributes to a trade deficit of about $1.6 billion, which is both a serious concern and a significant opportunity for the private sector to step in and innovate,” he added.

According to Hill, the current US-China trade war exposes the structural vulnerabilities of small economies like Barbados.

“In the short to medium term, we expect China to have significant surplus output, which could result in lower costs for imported goods, particularly in sectors like machinery, transportation, and construction materials. For SMEs that are not brand-sensitive, this presents an opportunity to reduce input costs through strategic procurement from China,” he said.

“On the other hand, we expect increased import costs from the USA, driven by capital market fluctuations, supply chain disruptions and potential inflationary pressures. For businesses reliant on US components or goods, this will necessitate a rethinking of sourcing strategies.”

The key, he said, lies in securing offtake agreements—formal contracts between producers and buyers that guarantee market access and pricing for goods—especially in unstable global conditions.

Hill suggested the current US trade posture could open new doors for Barbadian exporters. He also pointed to the broader CARICOM region, suggesting that the shifting global trade landscape could galvanise the Caribbean into greater self-reliance.

He explained: “CARICOM currently imports over 80 per cent of its food, with estimates placing the region’s food import bill anywhere between US$6b and US$13b ($12b and $26b) annually. The collective commitment to reduce this by 25 per cent creates a minimum market opportunity of at least US$1.5b for farmers, food processors, and exporters—and that’s just within the CARICOM space.”

His message to exporters was simple but urgent: transform, don’t just tweak.

“This is not the time for incremental tweaks. It is not even the time to obsess over efficiency. This is the time to focus on effectiveness. The focus now must be on deep business transformation and hardcore value creation—on strategies that move the needle, break barriers, and deliver measurable impact.”

The soon-to-be-launched Exim (Export-Import) Impact initiative by Export Barbados is designed precisely to make this shift, Hill suggested. The initiative is intended to help transition businesses from “sporadic export activity to structured scalable market engagement with locked-in demand”.

“This is how we close the trade deficit and begin our movement toward a trade surplus. It’s not just about trade; it is about transformation,” he said

“That’s why the message is Exim Impact. It is time for Barbadian firms to rethink their export-import strategy—not as a transaction but as a mission; not as ad hoc sales but as long-term stable growth anchored in offtake agreements.”

shamarblunt@barbadostoday.bb