“Jamaica Trade Desk News” Theme: Strategic alliances to leverage growth!

Contact us at (868) 675-8862 Ext. 239 Email: tradeassist@ttma.com

I S S U E 8 – O C T O B E R 2 0 1 3 M O N T H L Y P U B L I C A T I O N

H I G H L I G H T T H E

I M P O R T A N C E O F

S T R A T E GI C

P A R T N E R S H I P S :

TTMA welcomed the

President & CEO of

the CME...

I N S I D E T H I S

I S S U E :

Establishing smart alli-

ances and bringing on labour!

Building strategic

alliances: the right

way to compete !

2

Partnership driven

solutions: Labour in

T&T’s manufacturing

sector...

3

The implementation

of a regional model

to address labour

challenges.

4

ExporTT visits to Ja-

maica...

5

The 1st Export

Development Forum!

5

Upcoming event in

the French Carib-bean!... Don’t miss it!

6

Contact JA-T&T

Trade Facilitation Desk TODAY!

7

President & CEO of the Canadian Manufacturers and Exporters (CME)

advises T&T’s manufacturers : compete on quality & innovation!

Businesses in Trinidad & Tobago must adapt and

focus on innovation, in order to compete on an in-

ternational level. That‟s the advice of Canadian

Manufacturers & Exporters President and CEO Dr.

Jayson Myers, who gave the feature address at the

Trinidad and Tobago Manufacturers‟ Association‟s

President‟s dinner. The event took place on Wednes-

day 23rd October, 2013, at the Hilton Trinidad.

Dr. Myers noted that local manufacturers need larger

markets to be competitive and succeed. “Canada is a

small economy. For a huge country, we‟re actually

divided up, as you know, into regional markets.

We‟ve got a fairly small population compared to the

United States, and here we were going into a free

trade agreement with the United States, and we

signed that free trade agreement in 1989,” he said.

“Between 1990 and 2002, manufacturing more than

doubled. We couldn‟t have done that without the free

trade agreement. The reason was you need a large

market if you’re going to specialise. You need a

large market if you’re going to succeed and take

advantage of opportunities. You need a large market

to achieve the economies of scale that are going to

make you competitive.”

Dr. Myers said manufacturers today compete in a

global market with China and other developed econo-

mies that can outcompete locals on price and vol-

ume. He advised manufacturers to see their business

as providing solutions that customers need. “You

can‟t compete on product and price alone. You have

to compete on quality and innovation,” he said.

Minister of Trade, Industry & Investment, Vasant

Bharath highlighted the critical role this country‟s

manufacturing sector plays in the economy, noting

that it is the second largest non petroleum sec-

tor. Minister Bharath noted that while the sector

recorded a contraction of 0.4 per cent in 2012, it is

expected to rebound, with growth estimated at 6.1

per cent in 2013. “The contribution to GDP of the

manufacturing sector is projected to increase to 9.2

per cent in 2013, up from 8.8 per cent in 2012.”

Minister Bharath assured TTMA members that his

Ministry will continue to work with the TTMA to

“remove all hindrances to doing business in Trini-

dad and Tobago and overcome those obstacles that

hinder the growth of our non-energy sector”.

“To date, Trinidad & Tobago exports more than 80

per cent of Caricom‟s foreign trade and accounts

for about 80 per cent of all intra-regional exports.

To further increase this figure, arising from the

proactive lobbying of the TTMA, Government has

made provisions to improve the efficiency of the

VAT refund system”, Minister Bharath said. “As

an initial step in simplifying the VAT refund proc-

ess for the manufacturing sector, the Government

has made provision in the 2014 Budget statement

and $1 billion has been allocated for all outstanding

VAT refunds, with a view to ensuring that all fu-

ture VAT refunds are made within the stipulated

legal timeframe. “The Government will remove the

VAT on all imported items of raw materials that

goes into the manufacturing process.”

TTMA President, Nicholas Lok Jack praised manu-

facturers for driving the economy in the last two

years. He noted, however, that business people

must be aware of the current challenges, including

a slowdown in demand for locally produced goods

in the Caricom market. “Manufacturers must

move nimbly and quickly to access extra-regional

markets,” he stated. “To compete in these markets,

however, we must drastically reduce our cost base.

To do this, we must improve our productivity at the

firm level, at the agency level, and at the country

level.”

Article written by Ms. Julie Ramlal- TTMA Mar-

keting, Communications & Events Manager.

Email: marketing@ttma.com

Jayson Myers, CME CEO & President, Canadian sharing lessons from the Canadian experience during the President’s Dinner at the

Hilton Trinidad and Conference centre......

P A G E 2

Today‟s unpredictable

economy causes several

successfully assertive

leaders to refocus re-

sources on their core

business functions and

markets. Nevertheless,

focusing exclusively on

core business activities

and competencies has a

serious risk. In fact,

companies become un-

willing to invest in new

products or services, new markets or new processes, often

leading to sharp decline in revenue and profitability. In

order to prevent this negative effect, forward-looking lead-

ers are seeking to establish new alliances.

It is understood that before you jump into an alliance, you

need to bear in mind that between 50 to 70 per cent of all

alliances usually fall apart, most within the first two to

three years. All-too-enthusiastic partners don‟t automati-

cally have the shared knowledge and skills of what is in-

volved in successfully establishing and maintaining an

effective and sustainable alliance. To significantly amplify

the short- and long-term effectiveness of an alliance, there

is a need to ensure the following:

To begin with, it is key to conduct an initial analysis that

reassesses your customers‟ needs, requirements, and ex-

pectations. This is critical to the success of any business.

In addition, it is important to redefine the emerging market

opportunities for your products and services; the competi-

tive landscape with but also without and alliance partner;

and, to realize a truthful evaluation of your company‟s

strengths and weaknesses (SWOT analysis). There is no

doubt that it‟s essential to perform the same timely and

meticulous analyses on your potential alliance partners.

Secondly, you need to clearly identify the business metrics

that both companies will use and how these will be gath-

ered, analyzed and interpreted. While growing revenues

and profits is a universally shared key objective, others are

just as vital, such as improving market competitiveness

through market access, enhancing the innovative per-

formance of firms and increasing competitive advantage.

Thirdly, ensure that all key players or main stakeholders

provide active and effective support. Bear in mind that

in addition to the most senior executives of the firms,

middle managers “Team Leader” must be briefed on the

“raison d'être” for establishing a strategic alliance, so

that they can play a fundamental role in its rollout, by

tracking and measuring the productivity growth. The

clients and existing partners should be engaged in this

process as well, as they might be uncomfortable with

your new alliance.

Since all alliances go through growing stress and prob-

lems, take time to discuss with the leadership teams to

identify those best practices that are most likely to im-

pede the success of the alliance. For example, many

partnerships involve sharing of customer/client personal

information. As a result, both you and your ally necessi-

tate having processes for collecting, analyzing, sharing,

storing and discarding information that protects cus-

tomer/client privacy.

As in any relationship, strategically partners are ex-

pected to experience some degree of tension and anxiety

as their partnership progresses to new levels. In this

case, there are intermediary organizations available to

assist the parties refocus their energy.

It is apparent that regardless of the industry or type of

business that you are into, strategic alliances are the best

way for your company to compete and succeed in to-

day‟s fast-moving and networked economy.

However, forging a strategic alliance and making it

work are not easy exercises, as partnering well is a key

core competence that needs to be developed.

Invest your time and efforts wisely!!!

Article by Naika Pichi-Ayers– TTMA Trade Desk Offi-

cer, Jamaica-T&T Trade Facilitation Desk. Email:

tradeassist@ttma.com

Building strategic alliances:

The right way to compete in the 21st century!

P A G E 3

Partnership driven solutions: Labour in T&T’s manufacturing …

Research has shown that

manufacturing has a large

impact on job creation,

both direct and indirect,

and it is estimated to sus-

tain about 66 secondary

jobs per 100 direct manu-

facturing jobs, across all

skills levels. It is undeni-

able that manufacturing

activities provide inputs to other sectors of the economy

and satisfy a broad range of final and intermediate de-

mands. High value-added manufacturing, in particular, is

a key driver of innovation and technological advance. It

increases opportunities for attracting and embedding

R&D activities, collaboration with the higher education

sector and stimulating networks.

The latest Central Statistical Office data for T&T showed

a declining unemployment rate from 5.4 per cent in Q1

2012 to 4.9 per cent in Q2 2012. Significant decreases in

the size of the labour force specific to manufacturing

were also noted, with craft and related workers falling by

8.5 per cent or 8,500 persons; and plant and machine op-

erators and assemblers falling by 6.0% or 3,400 persons,

suggesting people are leaving the sector to seek employ-

ment in other fields.

Figure 1 offers a snap shot of employment in the manu-

facturing sector as collated by the Central Bank of T&T.

According to this data, T&T‟s manufacturing sector is

faced with an interesting conundrum – national labour

figures show that the unemployment level is declining

however the ability of manufacturers to source and retain

labour at globally competitive levels of productivity is a

persistent problem. Trinidad and Tobago‟s manufacturing

community sits in a questionable position due to a creep-

ing inability to have labour demand coincide positively

with labour supply. The specific problems that manufac-

turers face are with respect to retention of labour and en-

suring the requisite level of training of hired labour.

In light of the aforementioned constraints faced by local

manufacturers, the Trinidad and Tobago Manufacturers‟

Association (TTMA) is attempting to stimulate synergis-

tic relations between all key players as this is a national

problem that must be given strategic attention. In July

2013, TTMA signed a Memorandum of Understanding

(MoU) with the Ministry of Tertiary Education and

Skills Training (MTEST). The MoU will specifically

ensure that TTMA‟s member companies work with the

Ministry and the National Training Agency (NTA) to

design apprenticeship programs that meet the needs of

industry. Other initiatives that the TTMA will work

with NTA to highlight to members include the NTA‟s

Workforce Assessment Centers; On the Job Training

Programmme and their Career Coach. It is intended

that by working in conjunction with the TTMA the

work of the NTA and other training providers will

neatly coincide with actual industry needs.

TTMA also entered into a strategic partnership with the

trade association representing the Canadian Manufac-

turers & Exporters (CME) with the aim to promote

mutually advantageous commercial and industrial inter-

ests to generate economic benefits for both parties. An

MoU was signed in October 2013 with a core deliver-

able being collaboration on projects and initiatives with

respect to human resource and productivity develop-

ment.

“In the long run the workman may be as necessary to

his master as his master is to him, but the necessity is

not so immediate.”- Adam Smith.

The TTMA aims to work with members to ensure that

the relationship referenced by Adam Smith maintains

prominence within all local manufacturing businesses.

The association acknowledges that our human re-

sources are the key to business success and the local

manufacturing sector respects the poignant role of la-

bour in the value creation activities of our business.

Nicholas Lok Jack, TTMA‟s President hit the nail on

the head when he explained that industry must ensure

that workers are valued and that workers in turn value

their jobs, “I think we need to get back to basics. Peo-

ple need to value their jobs. Keeping people is just a

manifestation of the shortage we have in the labour

system. People have a million options and so they do

what suits them best and can walk out of a job today

and on to a new job. If people valued their job and what

they did that would take care of that problem. It‟s a

long term process and we need to have vision and I

hope we don‟t have to go through a bad catalyst like in

the eighties for people to get a sense of what is valu-

able.”

Contribution from Ms. Giselle Roberts– TTMA Team

Lead, Business Development.

Email: membership@ttma.com

Figure 1 Employment in T&T’s manufacturing sector 2011/2012

P A G E 4

The issue of labour shortage remains one of the single

largest challenges facing the Trinidad and Tobago (T&T)

economy. Despite an unemployment rate of 4.9% in T&T,

indicative of full employment, the business sector is

plagued by a shortage of labour which continues to hinder

its productivity. The affected sectors include the fast food,

agricultural, retail, entertainment and manufacturing sec-

tors. Data from the Central Statistical Office suggests that

persons are leaving these sectors to seek employment in

other fields. Coupled with this issue is the concern of by a

growing skills gap between education and employment -

40% of firms in critical sectors that drive the T&T econ-

omy view „skills gap‟ as a major developmental constraint.

Furthermore, statistics indicate that despite the 7000

graduates that leave the tertiary education system each

year, there continues to be a widening of the skills gap.

A similar situation is apparent in the Jamaican economy.

According to the Statistical Institute of Jamaica (STATIN),

Jamaica‟s unemployment rate for April 2013 is 16.3%, the

highest in more than a decade. In particular, unemploy-

ment among youths constitutes 38.5%, up 34.1% from

2012. The figures are indicative of despair felt across the

country by persons seeking work, despite an increase in

the labour force in 2012. The incremental increase in the

unemployment rate was caused by an additional 38,900

(3%) new entrants into the labour force, of which only

8,700 found employment – resulting in 30,200 persons

(16.3%) being unemployed. Additionally, the data shows

that plant and machine workers and assemblers experi-

enced the largest decline in workers dropping by 4,300

persons, while the overall manufacturing sector declined

by 7,200 persons (9.2%).

Despite the collective efforts of our respective govern-

ments, the data presented above make it abundantly clear

that unemployment remains pervasive in Jamaica and the

skills gap (along with under-employment) characterizes

T&T‟s labour maket.

The essence of the Regional Model

In this context and given the imperfections inherent in our

public sector human resource development mechanisms, it

may be expedient for the regional business community to

develop what is being loosely described here as a model to

enhance the supply and satisfy the demand for labour. It

should be constructed in such a way that it can be applied

to the specific labour market conditions in T&T and

Jamaica (and by extension the wider Caribbean).

Germane to this model and, with specific reference to

the supply of productive labour, would be factors such

as wage rates, education, training, the number of persons

comprising the overall labour force, working hours, the

nature of job contractual arrangements etc.

On the other hand, the demand for labour would be a

function of the size of firms, the capital intensity, the

cost of labour (including the minimum wage, where ap-

plicable), the nature of output (whether goods, or ser-

vices, or a combination of both), the company‟s revenue

projections, etc.

The model‟s creation can be facilitated by the formation

of a sample of manufacturers from both countries to

gather the data using an appropriate survey methodol-

ogy.

The beauty of creating such a model, assuming the

availability of data to manipulate it, is that users of it can

evaluate the impact of changes to any of the factors that

comprise the model on labour demand and supply. Once

this is done, one can then assess whether demand out-

strips supply or vice versa, which can in turn be used to

inform government policy insofar as it pertains specifi-

cally to the labour market conditions of the business

sector. This model can provide a sound empirical basis

for the free movement of labour between both countries.

This brings into focus the matter of the Caricom Single

Market and Economy. Fundamental to the CSME devel-

opment thus far has been the movement of factors of

production. While there has been much discussion on

this aspect of the integration framework, it has not

gained sufficient momentum to be described as being

fully fledged free movement.

The position taken in this article is therefore that the

business community can work towards showing the

benefits of cooperation among our island states towards

overall labour development, with redounding effects on

our Gross Domestic Product and economic growth. Of

course the counter argument can be made that the data

may suggest that such cooperation can compound the

problem and make unemployment a regional headache;

nevertheless the private sector, forever defined by the

profit motive and its self regulating nature, will

smoothen over any such complications if allowed the

latitude to operate fully in a regional space.

It has long been held that labour and capital are critical

to the economic expansion of any country. If we can

solve the labour component of this equation, a solution

to our development challenges will be within closer

proximity.

Contribution from Mr. Marc Sandy– TTMA Research

Officer, Business Development & Ms. Arianne Phillips

- TTMA Trade Research Officer (Respective emails:

research@ttma.com / researchdesk@ttma.com

The implementation of an effective regional model to address labor

challenges in the Caribbean...

P A G E 5

exporTT visits to Jamaica...

exporTT Limited is the national

export facilitation organization

of Trinidad and Tobago. Its man-

date is to:

Generate export growth and diversification in the

goods and services sectors;

Increase the international competitiveness of export-

ers;

Develop new exporters across the various sectors of

interest;

Expand to new markets, based on market research.

As the trade policy implementing agency of the Ministry

of Trade, Industry and Investment (MTII), exporTT pro-

vides a comprehensive range of services to exporters

through its core activities of:

Building export capacity,

Providing market access,

Creating an enabling environment for exports, and

Harnessing the differentiating factors that give Trini-

dad and Tobago a competitive advantage in global market

place.

Its market access activities include:

Researching and Exploring new markets;

Promoting T&T‟s products and services, using web-

based technologies and internationally;

Leveraging the Caribbean Diaspora;

Facilitating market entry through co-financing.

exporTT’s role is to assist the Government of the Repub-

lic of Trinidad and Tobago (GORTT) in diversifying its

export base leading towards a secure and sustainable future

for Trinidad and Tobago businesses.

The company continues to take on board feedback re-

ceived from clients and stakeholders in charting its way

forward. The company welcomes enquiries from inter-

national buyers and is ready to provide information and

advice on doing business with Trinidad and Tobago.

As part of Researching and Exploring new markets, the

company has planned a Market Survey Mission to Ja-

maica from November 04 to 10, 2013. Working

closely with Dr. Noel Watson of AZ Information Ja-

maica Limited, a team of two exporTT Officers- Mr.

Nigel Lutchman and Ms. Roann David, will be visit-

ing a number of Government Agencies and Jamaican

businesses, with the view of collecting information of

relevance to aiding business relationships between both

nations. The end objective will be to disseminate infor-

mation to T&T‟s exporters on their return through

seminars and information on the company‟s web pres-

ence- www.exportt.co.tt.

Ideally, it is hoped the Market Survey will result in

furthering business relationships between Trinidad &

Tobago and Jamaica, as we seek the broader vision of

economic development within the region.

An article written by the Export Goods Unit at ex-

porTT Limited. For further clarifications, please feel

free to contact Mr. Nigel Lutchman- Export Officer

at: (868) 623-5507 Ext. 235.

Email: nlutchman@exportt.co.tt

From October 29th-30th, 2013, exporTT held the 1st edition of the Export

Development Forum (EDF), an interactive platform which was designed to

encourage discussions focused on the sharing of best practices and focusing on

the growth and development of the services export sector.

During two days, international and local experts, trade institutions, regulatory agencies, exporters, business supports

organizations were brought together, to share deep insights on practical and working strategies in order to encourage

successful export development. The short presentations and the panel discussions on issues such as maximizing exist-

ing trade agreements, global value chains and overcoming non-tariff barriers, while discussing opportunities to in-

crease and diversify exports into traditional and non-traditional markets gave the forum a unique structure, in which

participants gained timely information and useful resources.

The Jamaica-T&T Trade Facilitation Desk/TTMA is taking this opportunity to congratulate once again exporTT for

putting together a useful event where everyone could learn from others expertise and experience, and network.

For more information log go on to: www.edftt.com or contact exporTT at (868) 623 5507/ Email: edf@exportt.co.tt

Export Development Forum 2013…

P A G E 6

Save the date for the 1st Investor’s Conference!

“Martinique: a market to explore...”

If you require information on the 1st Investors’ Conference, kindly contact the Regional Council of

Martinique at: martiniqueinvest@gmail.com or check the website.

P A G E 7

If you are interested in doing business with the twin-islands...

The Jamaica– T&T Trade Facilitation Desk is willing to assist you:

Informing Jamaican businesses (among others) about import regula-

tions & entry requirements into Trinidad and Tobago, as well as rep-

resenting their interests;

Encouraging networking and facilitating business match-making

with T&T companies to boost investment and trade;

Addressing main areas of concern and key 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 the coordination of visits and trade missions to T&T (planning, ground support and follow up);

Undertaking consultations with prospective exporters, business support associations and representatives of the

public sector institutions that play key roles in the export process in both countries.

If you need any additional information, you can contact Mrs. Naika Pichi-Ayers, Jamaica-

T&T Trade Desk Officer and Editor of the Newsletter at: (868) 675-8862 Ext. 239

Email: tradeassist@ttma.com Webpage: http://www.ttma.com/jamaicatt_trade_desk

Snapshots... TTMA successful President’s Dinner!

Photo 1: Nicholas Lok Jack,

TTMA President took the

opportunity to connect with members of the business

community to discuss poten-

tial business opportunities

that exist between T&T and

Canada .

Photo 2: Minister Vasant

Bharath, Ministry of Trade, Industry and Investment

advises the manufacturing

sector on the Caricom-

Canada trade agreement

and present negotiations.

Photo 3: (from left to right)

Mr. Suresh Sookoo, CEO– RBC Caribbean Banking,

Mr. Nicholas Lok Jack

TTMA President, Dr. Jayson

Mayers, CEO & President

of the Canadian Manufac-

turers & Exporters, Minister

the Honourable Vasant Bharath, Minsiter of Trade,

Industry & Investment, Mr.

Gerard Latulippe Canadian

High Commissioner, Mr.

Charles Percy, Managing

Director and CEO of

Methanex Trinidad Ltd.

Photo 4: Nearly 400 guests

attended the President’s

Dinner.

Photo 5: The hard-working

staff of the TTMA posing

for a group photo.

“Heartfelt thanks on behalf

of the President, the Board

of Directors and the TTMA

Management and staff for

your attendance to our

Dinner. Your presence

enriched that special eve-

ning!