“Jamaica Trade Desk News” Contact us at (868) 675-8862 Ext. 242 Email: tradeassist@ttma.com

I S S U E 3 – J A N U A R Y 2 0 1 3 M O N T H L Y P U B L I C A T I O N

HIGHLIGHT ON

TTMA:

Message from the

new TTMA CEO

Services provided by

the JA-T&T Trade

Facilitation Desk

I N S I D E T H I S

I S S U E :

T&T Updates

New trade opportuni-

ties for Jamaican busi-

nesses in Trinidad...

2

VAT refund issue:

help or hindrance to

T&T manufacturers?

3

Guidelines for import

of food into T&T…

3

Regional Events

TIC 2013… Save the

date!!!!

4

Call for Designers &

Artisans!

4

CARICOM Corner

Becoming “One” with

Latin America… is 5

Useful links

Message from the new TTMA CEO-

Mr. Mahindra Ramesh Ramdeen

Mr. Mahindra Ramesh Ramdeen has been appointed as the new Chief Execu-

tive Officer of the Trinidad and Tobago Manufacturers’ Association, effec-

tive January 2nd, 2013. The Jamaica-Trinidad and Tobago Trade Facilitation

Desk takes this opportunity to congratulate Mr. Ramdeen.

Please see below a message from the newly appointed TTMA CEO:

“It is my pleasure to greet readers of the “Jamaica Trade Desk News” pub-

lication, and I take this opportunity to wish all a happy and prosperous

New Year.

I wish to thank the TTMA for the expression of confidence and trust in my

leadership, and I look forward to continuing to work towards the further

growth and development of sustainable manufacturing.

As CEO of the TTMA, I also wish to reiterate the Association’s commitment and engagement, to facili-

tating and promoting trade within CARICOM, with particular attention to addressing the issues re-

garding trade between Jamaica and Trinidad and Tobago.

Since its establishment in May 2012, the Jamaica-T&T Trade Facilitation Desk has played an impor-

tant role in seeking solutions to some of the problems facing importers and exporters from both coun-

tries, and we have made significant progress in this regard. I would like to assure all stakeholders that

the TTMA will continue to actively partner with and provide support for the activities and initiatives

being undertaken by the Trade Facilitation Desk.

2012 was an eventful year, and much work lies ahead. Manufacturers within the region face the chal-

lenges of globalisation, increased competition as a result of new trade agreements, rapid advancements

in technology and the growth of emerging market economies.

We must rise to the global challenge, and seek to further strengthen the relationships, we have estab-

lished within the Caribbean region, in a mutually beneficially manner”.

Services provided by the JA-T&T Trade Facilitation Desk :

Informing Jamaican businesses (among others) about import regulations & entry requirements into

T&T, as well as representing their interests;

Facilitating networking and business match-making with T&T companies to improve trade;

Addressing major areas of concern/issues to the relevant trade institutions & regulatory agencies in

T&T and Jamaica (intermediating with such arms as customs, the standards authorities, and helping

with negotiating the bureaucracy) and offering support solutions;

Assisting in organization of trade missions to T&T (planning, ground support and follow up);

Undertaking consultations with prospective exporters, business support organizations, and represen-

tatives of the public sector institutions that play key roles in the export process in

T&T and Jamaica.

Let us know what we can do to assist you best…!

Trinidad & Tobago eager to explore new trade

opportunities with Jamaica…!

As the lead agency for promoting and facilitating for-

eign direct investment (FDI) into Trinidad and To-

bago, invesTT remains committed to supporting Ja-

maican businesses that are looking to expand.

There is room for improvement in some aspects of

trade relations between our two countries, a good

backdrop for us to start working more closely together

to explore possibilities — new investment opportuni-

ties in the twin-island Republic — that are favourable

to Jamaican businesses.

The Trinidad government has identified and

thrown its full support behind specific sectors for

FDI, among them, ICT, light manufacturing, mari-

time, renewable energy, as well as the creative in-

dustries: fashion, music and film.

Jamaican businesses have made strides in many of

these key sectors and have already positioned them-

selves to take advantage of opportunities in Trinidad.

The creative industries is a clear opportunity, Jamaica

having achieved tremendous success here, and having

the contribution to GDP to show for it.

There are significant incentives for Jamaican film-

makers looking to produce on Trinidadian soil, includ-

ing up to 35% cash rebate based on budget.

In manufacturing and ICT, Trinidad offers Jamaican

businesses low energy costs, robust infrastructure and

a supportive business climate. Its energy costs, in fact,

are among the lowest in Latin America at US $0.03

per kilowatt (kWh) hour.

Jamaican ICT companies will do well to consider Barba-

dos-based Columbus Communications’ successful in-

vestment in Trinidad and Tobago with the modern and

well-developed telecommunications infrastructure. As

more ICT players emerge in Jamaica, invesTT can play

a role in helping them expand to Trinidad where 400

ICT graduates become available every year, just one

segment of a capable and qualified workforce.

Trinidad’s growing financial services sector presents

another huge opportunity for Jamaican businesses

and invesTT can make expansion to this country easy by

working on a firm’s behalf with the Trinidad and To-

bago International Financial Centre, a special purpose

agency set up specifically to support this sub sector.

Both countries enjoy many years of economic and politi-

cal cooperation and invesTT is serious about deepening

existing partnerships within Caricom and forging new

ones. They're ready to do business with Jamaica.

For Jamaican companies, invesTT is the first point of

contact. They will provide the information you need to

make critical investment decisions: real estate, tax and

demographic data, standards and regulatory information,

value chain advisory and a range of sector-specific data.

They also facilitate site visits and they provide after care

services to make good on their promise of partnership.

It's the same promise they’ve made to global power-

houses like Fujitsu, Citibank and IBM who have been

operating in Trinidad for years… Why not you?

For additional information on invesTT, kindly contact

Mr. Sekou Alleyne– Manager, Investor Sourcing:

(868) 675-1989 ext. 2268/ Email: se-

kou.alleyne@investt.co.tt / Website: www.invest.co.tt

P A G E 2

P A G E 3

VAT refunds: help or hindrance to T&T manufacturers?

In September 2012,

Prime Minister Kamla

Persad-Bissessar an-

nounced at a pre-budget

rally that the 15 per cent

Value Added Tax

(VAT) on food items

(excluding alcohol and

"luxury goods") would

be removed in an effort to lower food prices and curb

food-price inflation. Many remained skeptical as to how

such a feat would be executed in less than two months

however – so said, so done. November 15th 2012 saw

Minister Larry Howai, Minister of Finance and the

Economy read his maiden budget speech confirming that

VAT would be removed on over four thousand items.

The 4000 plus food items that have been targeted for

VAT removal are described in accordance with their

tariff description in Legal Notice No. 365 which is

available on the Ministry of Legal Affairs website at

www.legalaffairs.gov.tt. Broad categories such as cream

and creamers; biscuits; meat; yogurt; butter fat and but-

ter oil; vegetables; artificial sweeteners; coconut milk;

jams and jellies; cereals; fruit juices; sauces and more

have had VAT removed.

The removal of VAT on consumer goods bodes well for

customers and the general public however, the TTMA

has been advocating for the government to ultimately

remove VAT on inputs imported by manufacturers.

The TTMA, along with many other private sector

groups; renowned economists and academics, recog-

nizes that local manufacturers have been placed at a se-

vere disadvantage with this action.

The Vat refund system in T&T is severely inefficient

and manufacturers are constantly in a high refund posi-

tion. TTMA’s own internal research has shown that

companies are often six months without receiving their

VAT refunds from government.

Further, local manufacturers pay VAT on all raw mate-

rials and inputs into manufacturing and then await their

refunds. However importers of Food and Beverage items

will no longer have to pay VAT at the point of importa-

tion, and therefore the local manufacturer will face a

significantly higher cash flow burden as compared to an

importer / distributor.

The TTMA continues to advocate for the removal of

VAT on raw materials imported by our manufacturers

and recently held meetings with Minister Vasant

Bharath, Minister of Trade, Industry and Investment to

try and lobby government to amend the present legisla-

tion.

TTMA will continue to lobby the government over com-

ing months to ensure that VAT on raw materials is re-

moved for local manufacturers.

TTMA looks forward to a potential resolution of the

severe constraints faced by our members under the pre-

sent VAT refund system if such an amendment is made

to the present legislation.

For further queries on the VAT issue, please feel free to

contact Ms. Giselle Roberts– TTMA Team Leader,

Business Development: (868) 675-8862 Ext. 233 /

Email: membership@ttma.com

Guidelines for food import into T&T...

Since October 2012, the JA-T&T Trade Facilitation

Desk has started working on the creation of an im-

porter’s manual for import of food into Trinidad &

Tobago with the collaboration of the Chemistry, Food &

Drugs Division (CFDD) of the Ministry of Health, as

well as the Trinidad and Tobago Manufacturers’ Asso-

ciation (TTMA).

This project was launched by the Trade Desk Officer,

Mrs. Naika Pichi-Ayers, with the main objective of as-

sisting Jamaican companies, among others, in getting a

better understanding of the labelling requirements

and enforcement, so as to ensure the import flow into

T&T becomes much smoother.

It was also initiated in an effort to strongly collaborate

with the TTMA, which has been lobbying the Govern-

ment of T&T during many years, by addressing the

CFDD’s lack of transparency, efficiency and ac-

countability, and by extension of the Republic of the

twin-islands.

The consultations

between the JA-T&T

Trade Facilitation

Desk/TTMA and the

CFDD have been

conducted with con-

sistency to date, and

review of the draft

importer’s manual

were also made.

The importer’s manual was designed to be user-

friendly, in order to give a clear and simple vision of

the regulatory requirements on food in T&T and

facilitate trade. We are now looking forward to finalizing the guide, in

order to present it to the various Jamaican stakeholders,

and businesses. The project is expected to be com-

pleted by the end of April, 2013.

For more information, kindly contact Mrs. Naika Pichi

-Ayers, JA-T&T Trade Desk Officer at: (868) 675-

8862 Ext. 242/ Email: tradeassist@ttma.com

P A G E 4

Trade & Investment Convention 2013... Will you be there?

Hosted by the TTMA, the Trade & Investment Convention

(TIC) will celebrate its Fourteenth Anniversary from June

12th-15th, 2013 at the Hyatt Regency Trinidad, Port of

Spain, Trinidad.

TIC is the largest tradeshow of its kind in the Carib-

bean and the most influential business-to-business

events in the region.

It will bring together hundreds of manufacturers, service

providers, buyers and distributors, financial institutions

and investors, and regulatory agencies responsible for

trade facilitation.

TIC 2013 will connect Buyers and Sellers to create new

Business Partnerships via a multi-sectoral tradeshow,

structured networking, and matchmaking.

TIC 2013 will offer Business Buyers a treasure trove

of opportunities… from new products and suppliers to

new contacts and business partners.

While TIC Exhibitors will meet thousands of local,

regional and international buyers… including whole-

salers, retailers, and distributors.

TIC works closely with members of the Diplomatic

Corps, Ministries of Government, heads of Business

Associations, and our valued sponsors, a formula

which has ensured its continuous success!

Contact the TIC Secretariat TODAY at: (868) 675

8862 ext 233 or 247 to book your booth or to register

as a Buyer! You can also register directly on-line at

www.tic-tt.com

Book your ticket to T&T the TIC 2013!Book your ticket to T&T the TIC 2013!

Call for Designers & Artisans... Don’t miss it!

From 20-23 June, 2013, Artisans from the Carib-

bean region are invited to exhibit their products at

the region’s foremost trade show “Design Carib-

bean” (Bahamas), which offers unique access to im-

portant regional, international and diaspora buy-

ers. Inspired by the passion and talent of both distin-

guished and aspiring artists, Design Caribbean will

bring the region’s finest handmade designs and innova-

tive products onto the world stage.

Showcasing a broad product range of handmade quality

products, it will connect artists to buyers, and design

enthusiasts from the Caribbean region, North America

and Europe. Design Caribbean visitors will come away

with a true sense of the diversity and splendor that

breathes vibrancy into the Caribbean region.

Design Caribbean will attract buyers from North

America, Europe and the Caribbean region. This

year promises to be a notable event that no artisan

should miss. If you want your products to reach a

global marketplace, please register your interest imme-

diately as places are limited.

Interested persons should click on the link below to

download the company assessment form which should

be completed and sent to Caribbean Export by Febru-

ary 28, 2013: http://www.carib-export.com/2013/01/

expression-of-interest-design-caribbean-2013

For further information, kindly contact: Ms. Cora

Lowe– Advisor, CEDA Special Projects at: (246)

436-0578 or via email: clowe@carib-export.com

P A G E 5

Becoming “One” with Latin America... Is this feasible?

Trading is becoming more liberal-

ised, and the CARICOM region is

not exempt from the global re-

moval of trade barriers in any

way. To date, the region has

opened its market to the European

Union and various Latin Ameri-

can states. Currently, the region is

negotiating an agreement with

Canada for the removal of tariffs. If this agreement is suc-

cessful, Canada’s neighbour in the global village (i.e.

USA) would also be seeking such an agreement with

CARICOM. Based on this free-trade thrust, is CARI-

COM ready for liberalising its markets to the entire

Latin American market?

The aforementioned question is a timely one, since the

possibility of liberalisation with Latin America was indi-

rectly raised by Jamaica at the recently held COTED meet-

ing (5th December – 11th December 2012). Jamaica

claimed that CELAC is desirous of creating a Latin Amer-

ica and Caribbean Tariff Preference. One of the underlying

implications of such a unified tariff is the creation of a

common market.

The Community of Latin American and Caribbean States

(CELAC) consists of 33 member states, i.e. 14 CARICOM

states and 19 Latin American states. Of the 19 Latin

American countries, CARICOM has only liberalised its

markets (at least partially) to five of these states, namely

Colombia, Costa Rica, Cuba, Dominican Republic and

Venezuela. The Dominican Republic (DR) market is the

top Latin American market that CARICOM has conducted

the most trade (including and excluding products of the

energy sector), with exports of USD 874 million, and im-

ports of USD 1,150 million in 2011.

By removal most of the tariffs on products between CARI-

COM and Dominican Republic, manufacturers have been

given an opportunity to increase their competitiveness.

This is based on the assumption that an increase in the

market size results in increased economies of scale to

the manufacturer, as he is granted more demand for his

products. As long as the manufacturer can supply the

increased demand, there should be benefits to such an

agreement.

However, trade with the DR has presented its chal-

lenges. One of the challenges encountered when ex-

porting to DR is the infamous distributorship law, i.e.

Law 173. Essentially, the law binds the exporter to an

agent or distributor, as penalties are applied to the ex-

porter if he changes his distributor. This law is still

applicable to CARICOM countries, even though there

is a Free Trade Agreement between the two parties.

Since these laws exist in other Latin American coun-

tries, will the precedence set by the CARICOM-

Dominican Republic agreement hold? Will CARICOM

countries be subject to liberalising their markets, while

encountering non-tariff barriers (such as the aforemen-

tioned law)? If the region does encounter these non-

tariff barriers, then the benefits to be gained will be

significantly reduced. Based on the aforementioned, is

becoming one with Latin America a feasible idea?

(¹) Individual CARICOM member states have signed agreements

with Latin American states, e.g. Belize & Guatemala, Guyana &

Brazil, Suriname & Brazil.

(²)Based on the Latin American markets that were liberalised via

Trade Agreements.

(³) Currently, the region has a trade deficit with all of the Latin

American countries with which there are agreements. However,

individual member states have had varying results in this regard.

For more information on this trade matter, kindly con-

tact Mr. Christian George– TTMA Research Offi-

cer: (868) 675-8862 Ext. 225 /Email: trade@ttma.com

TTBizLink: https://www.ttbizlink.gov.tt/tntcmn/faces/pnu/PnuIndex.jsf

TTConnect: http://www.ttconnect.gov.tt/gortt/portal/ttconnect

InvesTT: http://www.investt.co.tt

Customs & Excise: http://www.customs.gov.tt

Ministry of Trade, Industry & Investment: http://www.tradeind.gov.tt

Ministry of Finance and the Economy: http://www.finance.gov.tt/index.php

Ministry of Health: http://www.health.gov.tt

Chemistry, Food & Drugs Division: http://www.health.gov.tt/sitepages/default.aspx?id=93

Trinidad and Tobago Bureau of Standards: http://gottbs.com

Useful links....