TT manufacturers: Too many restrictions in Cuba

Local manufacturers ended day two of the Trinidad and Tobago Manufacturers Association (TTMA) trade mission to Cuba with mixed reactions, after they were given a comprehensive overview of the process of conducting trade and investment with Cuba. While Elvira Castro, President of Conas, a Cuban firm which handles trade transactions in Cuba, tried to paint an optimistic picture of the business environment, TT businessmen found there were too many restrictions placed on them. Elvira Castro had cited the availability of skilled labour, electricity in 75 percent of the city and an expansive infrastructure. Paul Tiah, director of Trinidad Brushwire Ltd, felt his business would struggle in the Cuban market since he would have to compete with China. Cuba currently imports the bulk of its industrial cleaning supplies from China. “Our major competitor will be China and I suppose because both Cuba and China are communist countries the relation is strong, so there is no way we can compete, but we are still going to try,” said Tiah. Other manufacturers, like Hakim Juman, makers of Padz sanitary napkins and The House of Paper products, makers of Comfort Plus toilet paper, felt the mission was just the first stepping stone, and will serve as a medium for gathering information and assessing the situation in Cuba. Some were unaware of the lengthy registration periods and requirements needed to enter the Cuban market.

According to the Canadian Embassy business desk, “companies seeking to sell their products in Cuba cannot simply go there and set up a representative office as they might in other countries. Decree law 206 of 1996 authorises representative offices of foreign corporations, and establishes conditions of their registration.” Also, companies must have business records of at least five years and three years experience in sales to Cuba. Cuban officials warned manufacturers to follow the proper procedures to ensure a long lasting relationship between the islands. “Cuba is a normal country when doing business as long as you follow the rules,” said Juan Dominguez, senior officer at Ernst and Young. “If you really wish to do business go through the official channels, you cannot do this in one day, and Cuba has no interest on making bad investments.” TT manufacturers were also unaware of the specifics of the trade agreements between Cuba and Caricom. The agreements were signed in 2000 and has not been ratified by all the Caribbean countries, but has been ratified by Cuba. Anthony Hosang, president of the TTMA, said the trade agreement has not yet been ratified by Trinidad and Tobago Government. “Each member of the Caricom is required to have it passed in their Parliament,” he said, noting that the agreement is now in the hands of the Attorney General. He said once this agreement is passed the manufacturers will be able to meet Cuba’s trade requirements. Vishnu Danpaul, Vice-President of investment and trade at the Tourism and Industrial Development Company (TIDCO) was able to present Trinidad and Tobago as a highly lucrative investment for the Cubans. He urged Cuban businessmen to consider investing in TT’s Wallerfield Business Park, particularly in the areas of medical devices and software. Hosang said he hoped the Cuban businessmen will see the potential of investing in TT. Trinidad and Tobago boasts of quality products at competitive prices, he said, adding, products imported into Trinidad attract duties of about 20 percent. Under the bi-lateral agreement between Caricom and Cuba, “the products listed will be allowed to move freely, free of duties,” he said.