The Tribune

By ANNELIA NIXON

Tribune Business Reporter

anixon@tribunemedia.net

BAHAMIAN businesses may be forced to rethink how they manufacture, manage waste and use resources if they want to remain competitive amid new sustainability requirements from the European market, the Government’s trade director revealed yesterday.

Brickell Pinder, head of trade and industry in the Ministry of Economic Affairs, told a seminar on the ‘circular economy’ that the European Union's (EU) growing emphasis on reusing and repairing products is becoming a key consideration for exporters, signalling that low tariffs alone are no longer enough to secure access to international markets.

"The world has changed," Ms Pinder said, adding that while past trade negotiations focused primarily on reducing duties, sustainability has become an increasingly important factor in global trade.She pointed to the EU's recently-adopted Circular Economy Act, which aims to double the material re-use rate from roughly 12 percent to 24 percent through measures that encourage products to be reused, repaired and kept in circulation longer.

“This year they would have adopted a Circular Economy Act,” Ms Pinder said. “I think their rate of renewal or using products more than once is about 12 percent. They want to increase that to 24 percent.

"So in order to do that, they are also going to be initiating initiatives on imports into their economy. Those markets are going to want imported products which meet those standards."

Ms Pinder said The Bahamas has already seen the commercial benefits of adopting sustainable practices. She added that since around 2010, Bahamian fisheries exports have been Marine Stewardship Certified (MSC), thereby allowing sustainably-harvested seafood to command premium prices, particularly in the EU

The Ministry of Economic Affairs also believes similar opportunities exist across other sectors as The Bahamas seeks to diversify its economy following the COVID-19 pandemic.

Ms Pinder said the economic shock created by the collapse in tourism during the pandemic reinforced the need to build greater resilience through the National Trade Policy, adopted in 2023.

She said the strategy rests on four pillars: Reducing imports, expanding goods exports, diversifying exports beyond tourism and financial services, and improving productive and export competitiveness.

Reducing dependence on imported energy and food remains a major priority, Ms Pinder said, noting that the Government's renewable energy policy targets increase renewable energy generation to 30 percent by 2030. At the same time, The Bahamas is working through CARICOM initiatives aimed at reducing the region's food import bill.Beyond traditional exports such as fisheries, salt, cascarilla, rum and visual arts,

Ms Pinder said new opportunities are emerging in professional services, digital services and the creative industries.

The Government has recently completed a creative sector export strategy focused on expanding international markets for Junkanoo music, visual arts and crafts.

However, she argued that businesses must increasingly embrace circular economy principles if they want to remain competitive. Those principles include designing products to minimise waste, keeping materials in use for as long as possible through recycling, reuse and refurbishment, and developing products that regenerate natural systems.

Ms Pinder added that sustainability has already become mainstream among global corporations, with about 90 percent of Fortune 500 companies now implementing sustainability and waste reduction plans.

"If it's happening at that very high level, there’s definitely going to be a trickle-down effect," she added. Ms Pinder argued that adopting circular business models can generate significant commercial benefits by lowering material purchasing costs, reducing waste disposal expenses and cutting energy consumption, while also creating new revenue streams through refurbishing and extending the life of products.

She added that stronger sustainability credentials could also enhance The Bahamas' international reputation.

"We have gone around the world and said that climate change is really an existential threat to us," she said.

"I think that we could increase our brand globally by saying we are not only sustainable, but we are also making products and providing services that take into account the whole issue of the circular economy."

Ms Pinder acknowledged significant obstacles remain, including the high upfront cost of investing in recycling infrastructure, limited public understanding of sustainable consumption and a shortage of recycling facilities.

She said the Government intends to increase awareness among businesses, encourage firms to incorporate waste reduction into their business planning, support investment in recycling infrastructure and promote the adoption of green standards that can improve export competitiveness.

Ms Pinder also urged businesses to conduct waste audits, invest in more efficient technologies, train employees in sustainable practices and build circular supply chains.

Consumers, she added, also have an important role by supporting sustainable businesses, reducing reliance on single-use plastics and choosing refurbished products where possible. "The move to a circular economy can only happen if there’s collaboration between businesses, governments and consumers," Ms Pinder said.