Caribbean Export OUTLOOK 2016 - 2017

TRADE & EXPORT HOT SPOTS

CIMEX, one of the largest Cuban importers positioned as an upmarket distributor with both wholesale and retail operations, uses predominantly letters of credit to purchase goods. In some instances they have used bank transfers and exchange letters. While payment terms are negotiable depending on the demand and turnover rate of a specific item, 180 days is normal for payment after the Bill of Laden or Airway Bill has been received by the supplier. Feedback on the ground suggests themonths of July and August are not good times to conduct new business – these are the summer months and as such are slower than othermonths of the year for business negotiations. Participation in the long-standing FIHAV can be strategic. FIHAV is the largest annual multi-sector trade fair in Havana, running for over 30 years. This year’s November edition will mark the 33rd year of its staging, and already appears to be fully booked with countries world-wide participating, including from Germany, France, Spain, Italy, Canada, Latin America, andChina. Adelegation fromHaiti and the Dominican Republic will also be attending supported by Caribbean Export. Governmental Support So how can CARICOM governments assist their businesses to penetrate the Cuban market? The strategy used by Trinidad and Tobago is instructive. If the potential of the Cubanmarket is truly embraced, a regional trade facilitation entity could be for CARICOM exporters what Trinidad’s facilitation office has been for their own exporters. A united regional face at the FIHAV Expo will be important. Caribbean Export, under its Haiti- Dominian Republic Bi-National Programme has for the past few years organised a pavilion during the expo for exporters primarily fromHaiti and the Dominican Republic. Some further private sector suggestions relate to the registrationprocesswhichiscostlyandtime-consuming. National governments could consider assistance in this regard as a means of support that will be impactful and appreciated. Thoughmuch economic reform still has to take place to stimulate real growth in Cuba, and much will depend on the depth and pace at which these reforms are implemented, the market is burgeoning with potential, and time is of the essence for CARIFORUM businesses to gain first-mover advantage vis-à-vis their US counterparts.

Beverley Alleyne is a Senior Business Development Officer of the Barbados Investment and Development Corporation. She has over 12 years’ experience in the business of export development and promotion, managing a cross-section of large and SME exporters.

41

www.carib-export.com