Doing Business with Cuba Ms. Kenika Espinosa Research Officer, exporTT 14th May 2019
Overview of the Cuban Economy GDP Forecast- Reasonable performance but high uncertainty
Tourism- Strong sector but dimming prospects
Consumer Expenditure- Gains expected in 2019
Trade Embargo- Shifting direction of US-Cuban relations with the Trump administration
Business Environment Public-Private Sector Engagement- Government responsible for ž of economic activity
South-South Cooperation- Trade interest of the Cuban government increasing in the CARICOM region
T&T in Cuba- Caribbean Airlines, the Trade Facilitation Office, Republic Bank and the T&T Embassy
The Credit Period- On the decline in recent years aided by the rise of joint ventures
Exporting to Cuba ADVANTAGES • Ongoing economic reform in Cuba and the Trade Embargo • Port of access to 11.3 million people and 5 million tourists • Centralized Mega Importers such as: CIMEX, TRD, ITH, with import storage and distribution logistics • exporTT Trade Facilitation Office in Cuba DISADVANTAGES • Complex legal and regulatory landscape • Payment delays • External shocks- natural, political
The Trade Facilitation Office Showcase and introduce Trinidad and Tobago companies and products to the Cuban Market Expand the scope and subsequent import volumes of the Trinidad and Tobago companies/brands already in Cuba Provide timely and efficient logistic support to Trinidad and Tobago trade delegations Increase awareness and knowledge of Trinidad and Tobago export companies about trade opportunities and entry requirements for this market
The Registration Process CREATION OF PROFILE
START
1
CUBAN CHAMBER OF COMMERCE
2 MARKET VISIT
LICENSE
4 REQUIRED DOCUMENTS
5
3 EVALUATION
6
REGISTRATION
77 END
The Process for Importers
FORECASTING
5/21/19
MINISTRY OF PLANNING
MINCEX
REQUEST FOR BID & SELECTION OF WINNER
7
Payment Conditions • Opening of a registered branch office in Cuba- 3 years, $500,000 + annually • Consignment Sales- goods must be covered by a contract for sales of merchandise imported as consignment • The Credit Period- Trade finance has been a serious hurdle, RBL credit line available >$70M and terms of up to 360 days • Late Payments- not a prohibitive issue for larger companies
T&T Businesses in Cuba ALREADY IN OPERATION:
SOON TO BE APPROVED:
ExpoCaribe
• June 19th – 22nd 2019 • The Heredia Cultural Complex, Santiago de Cuba • ExpoCaribe will provide a space to promote economic activity in the region • Facilitates the identification and consolidation of interests between Cuba and other Caribbean countries • A mutually beneficial and attractive business opportunity for T&T’s manufacturers
Santiago de Cuba
Contact Us
Contact Us
exporTT Head Office: 151B Charlotte Street, Port of Spain
T: (868) 6123988 F: (868) 625-8126
https://exportt.co.tt/ research@exportt.co.tt