72772 v1 World Trade Indicators 2009/10 Suriname Trade Brief Trade Policy External Environment Since the mid-1990s, Suriname has made progress The simple average of the overall rest of the world towards liberalization of its trade regime, although tariff (including preferences) faced by the country’s duties and foreign exchange surrender requirements exports is 9.4 percent. But when its trade flows are are still applied to mineral exports. As a member of taken into consideration, it is apparent that Suriname’s the Caribbean Community and Common Market exports have very good access to international (CARICOM), Suriname applies the group’s Common markets, especially in comparison to its region and External Tariff (CET). Today, with a simple average income group. Suriname’s weighted rest of the world MFN tariff of 10.0 percent, Suriname’s trade regime is tariff (including preferences) is 0.1 percent, much slightly more restrictive than that of an average Latin lower than the regional and income group averages of America and Caribbean (LAC) or upper-middle- 3.2 and 3.1 percent, respectively. Suriname mainly income country (9.3 and 9 percent, respectively). exports oil, which is a partial explanation for its low Much the same as the majority of other countries in its rest of the world tariff for non-agricultural goods of comparator groups, Suriname is more protective of its 0.03 percent. It also explains why the 3.2 percent tariff agricultural products (with an average tariff of 17 faced by its agricultural goods has almost no effect on percent) than of its non-agricultural ones (8.9 percent). the total rest of the world tariff. The Surinamese dollar Based on the latest MFN applied tariff, it ranks 105th has a de facto peg to the U.S. dollar at a rate of 2.74 out of 181 countries (where 1st is least restrictive). The Surinamese dollars per U.S. dollar.2 country’s maximum MFN applied tariff, excluding alcohol and tobacco, of 50.0 percent is relatively low. A comprehensive Economic Partnership Agreement The government’s trade policy space, as measured by (EPA) between the EU and 15 Caribbean states in the the wedge between bound and applied tariffs (the CARIFORUM EPA group, including Suriname, was overhang), was 5.2 percent in 2008. Although steps signed in 2008. This replaced the expired preferences have been taken since the late 1990s to liberalize given under the Africa, Caribbean, and Pacific (ACP)- telecommunications, air transport, and ports, Suriname EU Cotonou Agreement. The EU committed to continues to have a low overall GATS commitments immediately removing all tariffs and quotas on index, where it is ranked 122nd out of 148 countries. Caribbean exports with the exception of sugar and rice, which will get full duty-free and quota-free access In response to the food crisis, CARICOM heads of by the end of 2009. The Caribbean countries, on the state agreed in March 2008 to a two-year suspension other hand, committed to an asymmetric and gradual of the CET so that member governments can drop opening of their economy to EU imports.3 duties as needed to counteract rising food prices.1 The CET on a range of infant juices was also suspended for a period of 6 months up to September 2008. Behind the Border Constraints Suriname remained in the bottom 20 percent of international business environments in 2009, being ranked 155th out of 183 countries in the Ease of Doing Business index. With a relatively low cost to export Unless otherwise indicated, all data are as of August 2009 and import goods, but a relatively high number of days and are drawn from the World Trade Indicators 2009/10 required for these activities, Suriname ranked 101st in Database. The database, Country Trade Briefs and the Trading Across Borders subcategory, which is a Trade-at-a-Glance Tables, are available at measures of trade facilitation in the country. http://www.worldbank.org/wti. If using information from this brief, please provide the Trade Outcomes following source citation: World Bank. 2010. “Suriname Trade Brief.� World Trade Indicators 2009/10: Country Trade Suriname’s nominal growth rate of exports, based on Briefs. Washington, DC: World Bank. Available at partner countries’ aggregate import data collected by http://www.worldbank.org/wti. the IMF, decelerated in 2008 to 13.1 percent World Trade Indicators 2009/10 Suriname Trade Brief compared to 17.7 percent in 2007. Its import growth 6. IMF, August 2009a. rate also decelerated to 16.6 percent from 28.7 percent 7. Fritz-Krockow, Bernhard et al., 2009, p. 86. in 2007.4 With the falling commodity prices and low aggregate demand due to the recent economic crisis, Suriname’s export earnings decelerated substantially in References the last quarter of 2008, causing the trade balance to Bridges. November 2008. “EU, Former Colonies Sign turn into a deficit. At the same time, the services First New Generation Trade Pact�. Bridges 12(5). deficit widened as growth in the tourism sector was International Centre for Trade and Sustainable outweighed by a rise in transport costs.5 Suriname’s Development. July 20, 2009. . the first quarter of 2009 have fallen by 8.4 percent Economist Intelligence Unit (EIU). 2008. “Country compared to the first quarter of 2008. Imports have Profile: Country.� EIU. also fallen in the same period, declining by 3.6 percent ———. July 2009. “Country Report: Suriname.� EIU. in nominal terms on a year-on-year basis.6 Suriname Food and Agriculture Association of the United Nations mainly exports alumina and gold, which together (FAO). 2009. “Policy Measures Taken by accounted for 83 percent of its exports in 2006.7 Its Governments to Reduce the Impact of Soaring biggest destination market is Canada, followed by Belgium and Norway, while most of the imports come Prices (As of 15 December 2008).� FAO. June 26, from the United States, the Netherlands, and Trinidad 2009. . exceeded inflows, resulting in a net outflow equivalent Fritz-Krockow, Bernhard et al. 2009. Suriname: Toward to 8.1 percent of GDP. Stability and Growth. International Monetary Fund, Western Hemisphere Department. Washington, DC: IMF. Notes International Monetary Fund (IMF). August 2009a. 1. FAO, 2009. Direction of Trade Statistics. IMF, Washington, DC. 2. IMF, August 2009b. ———. August 2009b. International Financial Statistics 3. Bridges, November 2008. (Country Tables). IMF, Washington, DC. 4. IMF, August 2009a. 5. EIU), July 2009, p. 14.