The Island Government has approved certain priority areas
of economic diversification, which are presented in the CEDP
as follows:
A Development of the IT-sector
1. e-business related industries
2. trade center services
3. learning centers
B Regional distribution center for trade, information and
services
C 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 natural 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. |
