T R A DE & E X P ORT HOT SPOTS
Doing Business in Cuba By Dawne Parris
A market of over 12 million people is nothing for
and beverage distributors in Cuba. It’s also eyeing
challenges of breaking into and competing in the
Caribbean exporters to thumb their noses at. That’s
the hotel and tourism sector and retail stores.
Cuban market, however, are numerous.
CARICOM would benefit. So when CARICOM
Chief Executive Officer Ronald Ramjattan says
Cuba has one of the world’s few remaining
and Cuba signed a reciprocal Trade and Economic
it would have been remiss of his 24-year-old
centrally planned economies, with the
Cooperation Agreement 15 years ago, it provided
company, which is already in several other markets
government controlling 90% of the economy.
exporters in the region with access to millions of
in the region, not to have looked at Cuba. “Cuba is
All trade with that country must be conducted
potential customers. The reciprocal agreement,
a new and emerging market with over 12 million
through the state. Goods can therefore only be
which focused mainly on trade in goods, gave duty-
inhabitants sharing a similar culture and food
imported into Cuba by government entities and
free or duty reduced entry to Cuba of specific goods
preference with the rest of the Caribbean people,”
joint ventures holding permits for the goods in
such as fruit juices, sauces, condiments, seasonings,
he says. “The Cuban market is similar in many
question.
and clothing from the CARICOM region. While
aspects to the rest of the Caribbean, even though
the agreement is now, more or less, inactive, several
the Spanish influence does have its fair share of
The high cost of transportation (both sea and
established companies have taken advantage of the
difference from us.”
air); legal and institutional differences; and
the kind of market from which any company in
opportunity of access to the Cuban market, though not without having to overcome several hurdles.
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insufficient finance and credit mechanisms are As Ramjattan acknowledged, the benefits are
some of the other major obstacles. Added to the
significant for any CARICOM exporter. They
strict rules which guide the country’s import
Baron Foods Limited, a Saint Lucian manufacturing
include having access to a large, regional market
policy, language was a hurdle for Baron Foods.
company with a Food Safety System Certification
that American competitors can’t take advantage
(FSSC) 22000 V3 certified product range of 165
of, due to the longstanding US embargo against
“Spanish being the spoken language is one of the
condiments and beverages is one such company.
trade with Cuba. Even though from January 2015,
main barriers we had to face. The selling terms are
it became possible for Americans to visit Cuba
completely different too as they are looking for
Five of its condiments and sauces have been
without a specific licence if the visit falls under any
three to six-month credit facilities,” says Ramjattan.
approved and accepted for sale in the Cuban
of 12 categories, there are still limits to the amount
market and the company is awaiting a confirmed
of goods that can be brought into the country in
Kapril Industries, however, did not have the
order from TRD Caribe, one of the largest food
luggage, and shipped by boat from abroad. The
language barrier problem.
www.carib-export.com