
One such industry is the trade industry, of which St. Maarten
plays an instrumental role as a hub for the regional islands.
Because of St. Maarten's duty free status and strategic
location, St. Maarten adds reasons to be chosen as a distribution
hub for container traffic for the following reasons namely,
as a result of:
1. It's close proximity to USA, creating savings of approximately
20% as compared to the southern Caribbean islands.
2. It offers excellent transshipment opportunities with
the newly renovated harbor facility to the surrounding islands
3. Falling outside the USA customs Zone, foreign vessels
or US vessels under a foreign flag are permitted
The Island Government has recently approved a Comprehensive
Economic Development Plan (CEDP) for St. Maarten with the
focus on diversifying the economy.
1. Diversification geared towards expanding the economic
bases by focusing on the development of other economic sectors.
2. Diversification within the tourism sector thereby identifying
what other types of industries within the tourism sectors
that can be developed i.e. marina/yachting, conference/group
travel.
Based on this approach the Island Government has approved
certain priority areas of economic diversification, which
are presented in the CEDP as follows:
• Development of the IT-sector
1. e-business related industries
2. trade center services
3. learning centers
• Regional distribution center for trade, information
and services
• Light manufacturing
Possible joint ventures and operations with other islands,
also possible and encouraged if the infrastructure developments
are not in favor for St. Maarten.

St. Maarten produces very little products due to the lack
of human resources therefore, the Island Government is looking
at ways of diversifying the economy. Since St. Maarten is
dependent on tourism, the CEDP focuses on industries that
complement and do not effect the tourism industry.
Preferential trade agreement
Foreign companies that manufacture in St. Maarten have preferential
access to US and European markets due to the Netherlands
Antilles status as an Associate member of the European Community.
Associate member of the EC.
St. Maarten, as part of the Kingdom of the Netherlands,
is an "overseas country and territory" (OCT) of
the European Community, and as such, has preferential access
to the European markets.
The European Community is a single market of 345 million
customers, therefore, St. Maarten companies which export
to the community can experience economies of scale.
Trade preferences and free access is given to products originating
in St. Maarten, which have added value by being produced
or processed locally and have provided employment.
International manufacturers and trading companies exporting
to the EU could see financial advantages by diverting their
exports via St. Maarten and by doing minimal processing
on the island could change the country of origin status
and benefit from this arrangement. |