By : ALDETH LEWIN
Source : http://virginislandsdailynews.com
Category : Small Business Grant
The latest data from the International Trade Administration shows an uptick in imports and exports to and from the territory in 2011 - positive economic growth for the Virgin Islands - but most of the activity came from the HOVENSA oil refinery.
HOVENSA announced it was closing the St. Croix refinery in January and ceased refining operations in February. While the facility will still be used as a fuel storage facility, no oil will be produced in the territory for export to the rest of the world.
The territory's merchandise exports rose from $1.9 billion in 2010 to $2.3 billion in 2011 - a 21 percent increase. During the same period, the United States saw a 16 percent rise in products sold to other countries.
In 2011, the Virgin Islands exported $782 million in goods to the Netherlands and $277 million to Canada.
Of the exports to the Netherlands, 92 percent was petroleum and coal products, according to the International Trade Administration. The remaining amount included chemicals and machinery.
All of the exports to Canada were petroleum and coal products.
Imports into the territory also rose, according to the federal agency.
In 2010, the territory imported $10.5 billion worth of goods. In 2011, that number grew to $12.2 billion. The territory's number one import was petroleum and coal products from Venezuela. Following Venezuela was Gabon, Azerbaijan, Norway, and Niger among many others - all exporting petroleum and coal products to Virgin Islands as well.
"Only a small fraction of all U.S. companies export, and of those that do, 58 percent sell to only one foreign market. There's plenty of room to grow more exports," Rachel Duran, International Trade specialist of the U.S. Commercial Service in San Juan, said in a prepared statement.
She said her office can assist the territory's government in its efforts.
Gov. John deJongh Jr. said his administration has worked to encourage and help local companies interested in exporting goods to foreign markets.
"The Virgin Islands has yet to truly realize the tremendous potential of international trade," deJongh said in a written statement.
DeJongh said exporting is not limited to manufacturing. Professional service providers, such as legal and accounting businesses, which are a traditional strength for the Virgin Islands, also can benefit from foreign markets, he said.
Several months ago, the Virgin Islands received a federal grant to study the export market, including how local companies can access it.
The Virgin Islands received a $489,646 State Trade and Export Promotion grant from the U.S. Small Business Administration to help small businesses develop and expand products for the foreign export market.
The STEP Grant program, administered by the V.I. Economic Development Authority, is a three-year pilot trade and export initiative authorized by the Small Business Jobs Act of 2010 and funded by federal grants and matching funds.
The STEP Grant is designed to help small businesses grow and create jobs, increase their exporting activities and raise the value of exports for small businesses that currently are exporting their goods and services.
- Contact Aldeth Lewin at 714-9111 or email alewin@dailynews.vi.
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Source : http://virginislandsdailynews.com/news/v-i-exports-surge-in-last-full-year-of-hovensa-operations-1.1290547#axzz1qIXKY4fC
