Newly elected president of the American Chamber of Commerce (AmCham), David Chaney believes that Trinidad and Tobago has its work cut out for it on FTAA.

He was cautious when he said TT will be “semi-ready” for the Free Trade Areas of The Americas (FTAA), when it comes on stream in 2005. Such pussyfooting by TT businesspeople is one  reason why AmCham has been strongly supporting the FTAA International Trade Negotiations Unit (ITNU), headed by Larry Placide. The ITNU is a joint chamber initiative and includes chambers and service organisations from all across TT. According to Chaney, the ITNU gives organisations in the services sector all the need to know about the FTAA and how it is going to affect them  in a “digestible” format so that they can comment and make note of all the issues that will affect their industry. In his distinctive Texan accent, Chaney said countries like Mexico and Canada started preparing 20 years while Chile set things in train early.

Chaney was elected AmCham president last week. He replaced Catherine Kumar who was the first woman to serve as AmCham’s president since its inception in 1992. He previously served as vice-president for two consecutive years. “I think that the challenge is finding ways to keep members interested and make them want to be educated about the FTAA. The interest has to be heightened. Many people think that they know all about the FTAA and they are not prepared to get involved,” he said of TT’s involvement in FTAA. FTAA is going to come and TT has to deal with it whether it wants to or not, he said, noting AmCham is going to be holding seminars and lecturers about the FTAA to keep educating people.

Apart from serving on AmCham’s board and running his business, Chaney also has a wife, Diana, from Venezuela; daughter, Stefani, 10, and a son Carlos, who is currently studying in Texas, all of whom he loves spending time with. He said while he lived in Texas, one of his hobbies was horse back riding, but now that he lives in Trinidad, he said there is not much horse back riding to be done, so he just spends his spare time with his family visiting the islands and travelling. Chaney’s first official engagement will attend the Association of American Chambers of Commerce in Latin America (AACLA), which will be held in Washington next week. He will represent AmCham at the meeting which keeps tabs on US trade. “You basically get an idea of what is going on in all countries so that you can benchmark against where your country is and where it is you need to be.”

This will be the first of many engagements for the Texan native. Born in Beaumont, Texas, on July 13, 1948 he worked all over Southern Texas doing work in the process control business and engineering. In 1987, he moved to Latin America to start a company for the company he worked for, Puffer Sweiven. “I am not an engineer. I did not study engineering in school just business. Most of my engineering expertise I acquired from on-the-job-training. When I started to work I got into an engineering position and liked it,” he says. Chaney stayed with Puffer Sweiven for 23 years and after working in exotic countries like Venezuela, Columbia, Ecuador, Aruba, Bonaire and Curacao. He got the opportunity to open up his own business in TT in 1993. The primary company is Trinidad Valve and Fitting and its major subsidiary is Process Management Limited, both of which are located in San Fernando. “We are in the process control business. We provide control systems and other products for the industry that is responsible for process control granted that a lot of it is in the energy sector,” he says. “We do work for just about anybody that has a piece of pipe; Nestle, SM Jaleel, Carib and bpTT.”

Chaney said it was really the British, American and German companies, all involved in the process control business, that brought him to TT. Some of the companies that Trinidad Valve represent include US-based Emerson Process Management; Swagelok; Rotork (British) and Wika a German-based gauge company. But, the newly elected AmCham president said he has no intentions of leaving TT anytime soon. “I like TT. The people are nice, there are lots of business opportunities. Its just fine. Right now TT is permanent until I decide to retire.” He boasted that he is often the envy of friends who live abroad and have to face heavy snow in their countries while he enjoys the tropical weather.

Chaney did not want to say anything major about his plans for AmCham until he met with the committee and its members. “I have not gotten my feet off the ground as yet.” It is not the first time that Chaney has been involved in the Chamber, he has been actively involved in the American Chambers in Venezuela and Ecuador. Since his appointment, Lisa Chamely-Aqui, AmCham’s executive director and other secretariat members, have been showing him the ropes. However, he wants more participation from AmCham’s members. “I have heard it said that everybody is happy and everything is good so they do not have a lot of problems but I would like to see more members take active participation in the meeting and committees.” Hi focus is not to increase the Chamber’s members. AmCham currently has 270 members and dismissed claims that AmCham is only for American-based companies operating in TT.

Twenty-five parent of Amcham are actually American companies or subsidiaries of American companies, but the other 75 percent represent other countries in TT, Europe, Canada, Australia and many other countries around the world, he said. Chaney said at some point, TT is going to have compete globally and the exposure to foreign companies will allow those here to see how companies operate on global basis. The local companies, too, he said, also give an idea of the way they do business in this culture, so it is really a great mix of experiences. Additionally, Chaney will also be working on ensuring that the environment for trade and investment remains positive. “A lot of what I am going to be doing is listening to our members and their concerns and I will represent them to ensure that as things go forward or new legislation is put in place, that the business environment for trade and investment remains as good as it is.” He said the mission of AmCham is to foster trade between the US and TT and keep it along its growth path. He added that more American companies and others from around the world as well are definitely interested in doing business with TT.

Flambouyant Virgin Atlantic Chairman Sir Richard Branson on Monday became another fly in BWIA’s ointment.

At a media reception at the Tobago Hilton, which followed the airline’s inaugural direct flight into Tobago, Branson did not mince his words. Virgin, he said, is in Tobago for the long haul. On the beleagured BWIA, Branson said the airline is not on his cards right now. Not yet, anyway.  Branson is, however, prepared to talk with the TT Government, but only  if it indicated that it wanted Virgin to consider the possibility of investing in the airline. “We don’t normally get involved in companies that are already up and running. I mean, if the Government ever said to us they wanted us to invest in Trinidad in the airline industry, we’ll certainly talk to them about it”, he told journalists. The dapper millionaire however stressed that it was “always difficult to invest in other airlines”. He explained: “I mean, what Virgin is good at doing is starting airlines with new equipment etc, you know, starting things from scratch. And, having said that, I mean, I like BWEE’s operations; if the Government were to come to us to see if there were ways in which we could participate I’d happily talk to them”.

In the meantime, as far as BWEE is concerned, the Virgin Atlantic Chairman said he just wished them well. “I mean, obviously the airline industry is a difficult industry and there is a lot going against the industry; we know that BWEE has had its difficulties and we hope that things will work out for them”, he asserted. On the question of how the deal was initiated that resulted in Monday’s start-up of the Virgin Atlantic service out of the UK, Sir Richard explained that Tobago House of Assembly (THA) officials had approached the airline “trying to encourage us to come for some time, obviously in the interest of tourism, of the hotels, of the restaurants, to get more traffic coming here”.

He said Virgin Atlantic’s negotiating team had always been working with the Government and the local authorities in making it all happen. The airline’s Regional Manager for the Caribbean, Judith Wilcox, explained that it was about a year ago that Virgin actually came in and had a look at the facilities and started the negotiations. “And we’re here today, basically, which is really exciting; a lot of planning has gone into it”. However, Virgin Atlantic is quite disappointed and has expressed serious concern that the proposed expansion of the facilities at Crown Point airport did not materialise in time for the airline’s arrival, as was promised. Said Wilcox, “I was very disappointed that the expansion that we believed would have been in place, for the development of Crown Point has actually not yet started.” She said that remains true today.  “We are very anxious to see the expansion project actually start, and that the facilities  for the passengers who will be transiting through the airport will be improved.” Branson added, “I mean, I think, without knowing the facts, I think you got a very good runway, you got a very good airport; (but) without a good terminal facility you not going to get airlines coming to Tobago”. In an immediate response, THA Chief Secretary Orville London said he had been in conversation with the Transport Minister and tenders were to be put out within the next two to three weeks for the first phase of the expansion works which should be completed in about six months.

Q. I’m in my late fifties and my wife pointed out last week that I haven’t put anything aside for retirement. I began to panic. How can I get into some really fast growing investments so as to have something stashed away when I quit work?
Sean, Fyzabad

A: Generally, the closer an individual is to retirement the more conservative should be his or her investment strategy. At this stage you are more concerned with income preservation rather than wealth building as the latter is inherently a risky affair, especially since in your case, you have less than ten years before retirement. Having said that, investors in Trinidad & Tobago are unusually lucky. Due to significant growth in the petrochemical sector over the years and high expected Foreign Direct Investment flows in the future, the local stock market has been going up even while markets all over the world are falling. Therefore, you may want to allocate a percentage of your portfolio to the local stock market.

However, it would be extremely risky to choose stocks at this stage. What you want to do is invest in a diversified basket of stocks rather than a mere handful of stocks. Some brokers can allow you to buy an investment that mimics the investment of the local stock market as a whole rather than that of a few shares. For example, there could be an investment that allows you to buy the composite index, which tracks the value of the stock market as a whole. While the return on such an index might be lower than picking a few shares on which a good broker is most optimistic, buying the market “as a whole” may offer a less risky strategy for you since you are close to retirement and cannot afford to lose much. The return on the composite index over the past ten years has been about 19.0% per annum on an annualised compounded basis. Most analysts expect that the composite index may perform at 13-14% in 2003. Such index instruments may not yet be available everywhere, but brokers are working towards creating them and quite likely would be on offer in the not too distant future.

Q. I can put aside about $800 a month. Would it be better to put it all into one money market account or should I put $200 into four different funds offered by four different institutions?
Jasmine, Santa Rosa

A: There are advantages and disadvantages to both and the answer really depends on your view on the soundness of the respective institutions, as well as the effective return (after any fees) offered by the money market account and the four funds. Putting all your money into one account means that if for some reason that institution fails or that account underperforms, your entire investment fails or underperforms. By putting your money into four separate funds, you receive the benefit of diversification, which reduces your risk of loss or underperformance. This is because it is less likely that all four funds or institutions will fail or under-perform at the same time.

If you have determined that the money market account and the four funds all offer the same effective return net of fees, it would be better to put your money in the four separate funds as opposed to the single account, since your risk adjusted return will be better by using the four funds.  Remember there are two sides to any investment — risk and return. In the case where you have the same levels of return being offered, what you want to do is minimise the risk. In the case where you have the same level of risk involved, you would want to maximise the return.

Q. What is the difference between investment banking and ordinary banking?
Sudesh, El Dorado

A: A major difference has to do with the term or period of the associated loans and investments. “Ordinary” banking relates to loans and investments of a short-term nature such as short-term deposits, short-term loans for working capital and overdraft facilities. Investment banking relates to longer-term loans and investments and is associated with the financing of longer term assets such as property, plant and equipment. Investment Banks also help companies and governments issue securities, help investors purchase securities, manage financial assets, trade securities and provide financial advice. Investment Banks fall into large, medium or small bracket. The small, specialised firms called boutiques are oriented toward bond-trading, Mergers & Acquisition (M&A) advisory, technical analysis, etc.

Questions can be sent to PO Box, 1830, Wrightson Road, Port-of-Spain.
E-mail :cmmbsecurities@mycmmb.com

While blue collar workers are in uproar over the salaries being paid to executive chairmen and chief executive officers (CEOs) of state enterprises, hard-core business people are of the view that such salaries need to be paid to get the right people to run these organisations.

Still, Arthur Lok Jack, executive chairman, Associated Brands Ltd indicated that private sector salaries are usually based on performance. “Depending on the financial metrics used, persons are paid on profit margins, and return on investment,” he said. However, he said this does not happen in the public sector. “I think people running public sector companies should be paid salaries that are on par with private companies. Their salaries should be around the same area otherwise all the best persons will go to the private sector and the worst to the public sector. It is a competitive market out there.”

Last week, it was revealed by Energy Minister Eric Williams that Petrotrin’s chairman Malcom Jones is receiving a monthly salary of $70,000 per month plus perks: a performance bonus of 16 percent of annual income; a fully maintained company vehicle with the option to purchase the vehicle at the end of his three-year contract period; a fully maintained and furnished company house; full participation in the company’s medical plan; 25 working days vacation per year of contract and gratuity of 30 percent of his basic salary payable on satisfactory completion of the contractual period. WASA’s CEO Errol Grimes also came under public scrutiny when it was disclosed that he was working for a salary of $50,000 per month, plus perks.

However, his salary was reduced to $36,000 after an investigation by Prime Minister Patrick Manning who said Cabinet had not approved a salary of $50,000. Anthony Hosang, president, Trinidad and Tobago Manufacturers Association (TTMA) is of the view that Jones is receiving a fair salary. “In order to get state enterprises to become more efficient and effective you have to hire the right people with the right balance of education and expertise.” He added that some chairmen on state enterprises work for less than those in the private sector, explaining that if Government wants to get these “experienced, highly skilled” people away from the private sector to work for them, it will have to match or exceed the salaries being paid in the private sector. 

Williams defended Jones’ pay package, saying that it had dropped from $82,656 to $46,200 between December 2001 and December 2002, when he left the private sector to re-enter the public sector. Titan Methanol had assessed Jones’ worth as “deserving of superior compensation.” Hosang noted that the stipend paid to Board members on some of these state enterprises is ridiculous. Directors on the Betting Levy Board (BLB) receive a monthly stipend of $600 per month, while its chairman gets $1,100. NFM’s CEO, Michael Potella, also earns much less than Grimes and Jones. He is not accorded a housing allowance or a furnished house. “Nine out of ten times people on state enterprise boards are very skilled people and as such deserve to be paid properly,” said Hosang.

According to the HRC Associates 2001 Compensation Report, the average basic salary for CEOs in the gas, oil and utilities sector was $44,520, while CEOs at the higher end of the spectrum got around $73,210. “What has to be taken into consideration though, is whether proper employment practices were considered in hiring these people,” said Hosang. Trade and Industry Minister Ken Valley said Jones compensation package was not approved by Cabinet. However, Williams insisted that a proper procedure was followed in fixing the $70,000 a month salary. President General of the Oilfield Workers Trade Union (OWTU) also defended Jones. “I would defend any decent remuneration package for quality of work in the energy sector.” He added that he will not argue against $70,000 in the “key oil and gas sector.” He reminded everyone that it is the oil sector which has carried the country’s economy throughout the years.

“CEOs in the public or private sector are paid according to their talent,” said former independent senator Diana Mahabir-Wyatt. “Salaries,” she continued “are based on performance of the company and its potential future and also the person’s talents.” Mahabir-Wyatt is also a human resource consultant and head of Personnel Management Services Limited (PMSL). Mahabir-Wyatt also noted that salaries are also determined by the pool of qualified persons from which they choose. “There are not a lot of CEOs with technical and managerial skills in TT. Therefore we have to retain local people by paying them what they will earn on the international market.” Richard Young, managing director, Scotiabank and president, Bankers Association of Trinidad and Tobago (BATT) said if an organisation want to attract “good and correct” people, it has to pay competitive salaries.

However, he said there should be a performance mechanism in place to ensure that the individual’s performance is in line with compensation. “Although an organisation may not perform as expected because of many reasons, not necessarily because an individual is not competent to handle the business.” Young explained that in WASA’s case, the organisation can make a profit if it increases its rates, but could face severe criticism. “The nature of WASA is totally different from Petrotrin.” He added that in the energy sector there is a shortage of skilled personnel and as such if Government wants to attract locals, it has to present a very competitive pay package. UWI economist, Dr Dhanayshar Mahabir said there was no due process in choosing the accurate candidates for the posts, and believes that both Jones’ and Grimes’ pay packages are excessive.

“I suspect that there was no due process because I did not see any ads in the newspapers advertising the vacant posts therefore I believe that these salaries are excessive.” Mahabir said if there was no due process involved in choosing the right candidates for the post, TT might not be getting the best talent to run these organisations. “The issue here is about transparency in choosing the right candidate through the right process. But, unfortunately in TT, CEOs and chairmen of state enterprises are chosen by a pool of individuals who belong to a particular political party.” He said if due process was involved in choosing these candidates, Government needs to show the evidence.

Do not use second mortgage as substitute for cash reserves

I am a firm believer in cash reserves. Except for participating in a company retirement plan, you should not begin to invest in stocks, bonds, mutual funds, real estate, or any other asset class until you first set aside some money as cash reserves.

The amount you need in reserves is based on how much money you spend (not on what you earn) and on the stability of your income (not the income itself). For example, because a couple such as  Richard and Catherine are married and each have secure jobs, two months worth of spending is probably sufficient. However, a single mom, June  who earns sales commissions, ought to keep 12 months’ worth of spending in cash reserves. The point is that every person or family should maintain in cash reserves enough to get through those unexpected but inevitable rough times. As important as that is, it’s equally important that you maintain only enough in reserves, because the interest rate your reserves will earn is terribly low-lower, in fact, than what you’ll earn on virtually any other investment.

Once you determine how much you need for reserves, you must keep your reserves safe (meaning you cannot lose this money) and liquid (meaning you can get to it at any time without penalty). Only six places qualify: your mattress, savings accounts, chequing accounts, money market funds, Treasury bills, and short-term bank time deposits. Although most folks who are attentive to their finances agree with this concept, over the past several years, many have become unhappy with the idea of stashing $25,000 or $30,000 into low-interest bank accounts, where the money just sits for a rainy day that might never come, while their investments in stock and mutual funds have been earning 15% a year or more.

Increasingly, I have come across people who are not maintaining any money in cash reserves. Instead, they’re taking out second mortgages on their homes at the bank. It’s a great idea, they say. Because they bought their houses many years ago, they now have substantial equity in their homes, enabling them to obtain a $50,000 or sometimes even $100,000. This way,they can fully invest all their cash and, if the roof suddenly needs repairs, they can simply take out a second mortgage to pay the bill.

Although their plan sounds good, it is predicated on two things; good performance from their investments and a short-lived, although not necessarily inexpensive, crisis. I’m not sure I’d categorise a new roof as an economic crisis (at least, it shouldn’t be one). No, in my opinion, a real crisis would be you losing your job because your company went broke-rendering worthless all of your company stock and tying up in litigation your pension  plan because the management was stealing from it in a vain attempt to keep the company afloat.

That’s what happened to one of my friends. He lost his job when the company went broke, and fearing that he might be out of work for months, he went to the bank to seek a second mortgage on his house. When asked why he wanted the mortgage, he replied to the loan officer, “Well, I’ve just lost my job, so I want this to help tide me over.” Bad move. Not only did they deny his request, the bank cancelled his existing credit line! Remember, its called cash reserves for a reason. So, while you can be as clever as you want when it comes to selecting your investments, don’t get too creative when it comes to building and maintaining your cash reserves. Because when that crisis hits, you’ll agree: There is no substitute for cash.

Prevent credit record from becoming too good

When evaluating your application for a mortgage or other loan, lenders ask themselves one basic question: Are you likely to default? To help them answer that question, they utilise a credit scoring method devised by Moody’s which scores  individuals based on their credit histories. This practice, which compares your credit report with data compiled from thousands  of other borrowers, enables the system  to predict your likelihood of default. The point system, developed over the past four decades, gives a variety of values for the types of accounts you hold, as well as your history, such as delinquencies. The higher your  score, the better. In fact, merely asking for a new credit card can be as bad as being denied one. You lose ten points for each credit inquiry (an inquiry is made whenever you apply for credit), because Moody’s  has learned that those in (or expecting) financial trouble try to increase their lines of credit. Thus, completing a dozen applications in a brief period makes you a suspect credit risk.

If you’re among the “smart consumers” who have a credit card “just in case” you need it, you’re actually hurting yourself: You lose points if you have a credit card but never use it. Of course, delinquencies count against you, too. How much depends on their severity and how recent and frequent they are. And some delinquencies outweigh others — missing a mortgage payment is considered worse than missing a credit card bill. Because so much data is used to calculate your score, Bank’s do not disclose how your score is determined, although the company is quick to state that age, race, religion, colour, national origin, marital status, and sex are not considered.

To get a high credit score — which is important if you one day want to buy a home or apply for a car loan — you should: have and use few bank cards; close any unused credit card accounts;
* Keep your credit limits and outstanding balances down; satisfy any public records (such as tax liens or judgments); avoid late payments; and limit the number of accounts you open.

The US Government’s decision to exclude Cuba from the Free Trade Area of the Americas (FTAA) has done nothing to dampen this country’s appetite for trade with the island.

In the face of US opposition, TT, along with other members of Caricom, have instead sought to strengthen relations with a Fidel Castro’s country, a virtual pariah in the international community. Local manufacturers have set their sights on the TT$90 million to be derived from trade between the two countries. The TT Manufacturers’ Association (TTMA), in collaboration with TIDCO and Republic Bank Limited has organised a trade mission to Cuba, scheduled for June 25. This is the second such mission, the first having taken place in the year 2000. TT is hoping to increase its exports to Cuba past the $79 million figure of last year.

President of the American Chamber of Commerce (AmCham), David Chaney, expressed his support for TTMA in its efforts to boost trade with the communist island. He noted that 75 percent of AmCham companies were local businesses seeking to expand their trade and investment opportunities and market access. Additionally,  many of the Chamber’s members were members of the TTMA. “If Cuba presents itself as a good market for trading in TT goods and services, then any benefit from expanding business opportunities in Cuba will rebound to AmCham members,” he said. “So we see the TTMA trade mission to Cuba as a positive initiative, one that we will encourage our members to take advantage of.” Chaney could not see the initiative having any negative effect on TT business relations with the US. Many of the US’s trading partners in the Western Hemisphere have recognised that Cuba offers good business potential and have been working on building bi-lateral relations with Cuba, he said.

With respect to Cuba/US Unilateral Sanctions, Chaney disclosed that AmCham’s parent organisation, the Association of American Chambers of Commerce in Latin America (AACCLA), has long argued that unilateral sanctions do not achieve their intended objectives and often undermine US national interest. “Such sanctions,” Chaney asserted, “make martyrs out of tyrants and benefit non-US companies by clearing the field of some of their strongest competitors.” “A more effective approach is to expand the international rules-based training system and broaden US engagement,” he said. Cuban Ambassador to TT, Felix Rojas, expressed his happiness with the decision of local manufacturers to take their business to his country. He said that his government had long desired to establish a solid relationship with its Caribbean counterparts, especially Trinidad and Tobago, which had much to offer.           

“It has not been easy to reach this point,” he maintained. “Cuba has undergone some very difficult times, probably more difficult than many other countries. Nevertheless we have reached the acceptable level to warrant business from TT. According to TTMA President Anthony Hosang, Cuba is potentially the largest market near at hand and a prime destination for local manufacturers. He lamented the fact the largest economic trading block (FTAA) will not include the largest Caribbean island. Cuba’s exclusion is based on the USA’s refusal to recognise the Communists as Cuba’s legitimate government, having stressed that only democratic governments can participate in the agreement. But critics point to China, where the US lobbied for the communist country to join the WTO. It’s no secret that US companies are looking at China’s untapped market.

Communists have governed Cuba since 1959. The US initiated a trade embargo on the country in 1962 and has constantly criticised Cuba’s human right’s record. Castro has never been allowed to participate in the Summit of the Americas. The US Government has also discouraged its hemispheric allies from establishing relations with Cuba, specifically with the Helms-Burton law which penalises companies which do business in both Cuba and the US. Nevertheless, local manufacturers seem intent on taking their business into Cuba. Hosang was unperturbed by this law, noting that there were many European and Canadian companies who continue to do business with Cuba. Additionally, he stated, Caricom had signed a trade agreement with the country in spite of this US policy.

Canada is believed to be the biggest single foreign investor in Cuba in dollar terms. In sharp contrast to the US, Canada has strengthened economic links to Cuba, becoming its biggest trade and investment partner. Two-way trade was estimated at more than Can $700 million in 1997. In some cases, investment by Canadian companies has directly increased Cuba’s output namely in the nickle and oil industries. Hosang said, “people who have visited Cuba have spoken of a country with different political and business systems, but one which is running successfully. It is a Caribbean country which has problems like any other country.” In 1994, only 500 American business people travelled to Cuba, whereas last year more than 3,500 reportedly entered the country. An increasing number of US cities and towns would like to establish ties with Cuba. More than 30 twin-city relations are in the process of being established. Among the US cities involved are Mobile (AL), Pittsburgh (PA), Bloomington (IN), Madison (WI), Tacoma (WA), Oakland (CA), Richmond (CA), Seattle (WA) and West Hollywood (CA).
Foreign companies are gearing up to position their brand names before American companies arrive in large numbers in Cuba. Since the early 1990s, the government’s decentralisation policy has led to an increase in the number of Cuban enterprises that now import a wide variety of products and services. Free trade zones have been created in anticipation of an opening-up of trade between Cuba and the US.

In 1999, the US Department of State reported that an estimated total of US $1.7 billion had been invested in Cuba since 1990. The largest sectors receiving foreign investment were telecommunications with US $650 million, Mining with US $350 million and Tourism with US $200 million. Since the 2000 trade mission, Hosang said numerous manufacturers have seen their businesses peak. They have continued to do business there in spite of the fact that regional policy of the last 50 years has left Cuba sealed off from her closest neighbours, making the communist nation virtually inaccessible. “However,” he went on, “the Caribbean knows that Cuba is an important part of our economic community and we are fortunate that it continues to welcome its Caribbean island neighbours with open arms.” He said that the TTMA was seeking to get over 18 companies from different sectors to participate in the mission. In a previous interview, former TTMA President and prominent businessman, Stuart Dalgleish, noted that there were numerous benefits to be derived from reciprocal trade with Cuba. Figures show that in 2002, TT exports to Cuba stood at TT $79M, while imports amounted to TT $1.4 M.

Major export products to Cuba included ammonia, bars and rods and petroleum products. Toilet and facial tissue, cigars and corrugated paper were among the major imports. However, Dalgleish cautioned that there were a number of economic differences between the two countries, ‘this is why I will advise caution where establishing a reciprocal trade is concerned.’ Deputy Managing Director of Republic Bank Limited, David Dulal-Whiteway, is optimistic that TT can capitalise on cementing trading relations. He said that there was presently in excess of TT $90M worth of trade between TT and Cuba. This was expected to increase significantly over the next few years once the proper linkages were formed. Republic Bank, he stated, has been conducting business in Cuba for over five years and last year established a representative office in the country, making Republic the first banking institution in the region to take this step. “So far, relations with the Cuban business community have been excellent,” he said, noting that Cuba is a large economy and offers significant opportunities for the manufacturing sector of TT.

Cuba presently has a population of approximately 11 million persons, 70 percent of which are centred in urban areas. Its workforce numbers 4.5 million — 30 percent being employed in government and services, 22 percent in Industry, 20 percent in agriculture, 11 percent in commerce and 11 percent and six percent in construction and transportation and communication respectively. The unemployment rate stands at 4 percent. Hosang knows that when Cuba’s ports are eventually opened up, there is going to be a surge in trade. “With its wealth of culture, history and high standard of scientific application whether as a consumer or producing nation, it is therefore incumbent for us, the business community and manufacturers of TT, to strengthen our business ties, trading and cultural relations with the Caribbean’s big sister.” His point was emphasised by Vishnu Dhanpaul, Acting President of TIDCO, who also stressed the importance of tapping into the Cuban market. “TIDCO’s mandate is to proactively promote inward investment, search out new markets and expand existing ones, one of which is the Cuban market,” he asserted. “We have already embarked on a pre-mission to the country,” he went on, “which revealed a strong friend, a large market and people with a very strong work ethic, a strong manufacturing sector and a tourism sector which is poised for take-off.” Minister of Trade and Industry, Ken Valley, complimented the Trade Mission noting that it was an imperative converting TT into a major manufacturing platform and a base for financial activity.

He noted that TT placed too much emphasis on the oil and energy sector without recognising the need for diversity. This was highly important in the present face of uncertainty in light of the war with Iraq. “If the US gets ahold of Iraqi oil, what will happen to the price of oil?” he asked. “The oil sector is important but right now it is marked with uncertainty,” he said, adding, “we need to emphasise at all times the non-oil sector of the economy for continued growth.” A Cuban delegation is expected to visit TT on May 8 and 9, just before the TT Trade Mission planned for late June.