CONTACT Magazine (Vol.19 No. 2 – June 2019)

Vol.19 No.2 – June 2019

The Voice of Business in Trinidad & Tobago

CSME

Are we getting it right?

Getting the most out of your Smart Experience.

OS 3.0 from Control4 A revolutionary, easy to use, all in one solution for the new smart-home.

Visit our showroom to experience our new smart-home solutions.

Call to today to schedule an appointment.*

Smart Home Automation

manetsys.com

Manetsys Trinidad, LTD. Lot 29B-31 Lower Sixth Avenue | Barataria | Trinidad & Tobago | (868) 223-7871 *Showroom by invitation only, please call to schedule a visit.

Vol.19 No.2 – June 2019

Contents Editor’s note

On the cover: Mia Mottley, the Barbados Prime Minister, has the lead responsibility for the CSME (Caricom Single Market and Economy).

Photo courtesy: Prime Minister’s Office, Barbados

7

Natalie Dookie introduces this issue of CONTACT

Special Section CSME: Are we getting it right?

Small economies, big plans

8

The CSME (Caricom Single Market and Economy) was launched with much optimism 30 years ago, but has disappointed many. Colin Soo Ping Chow examines the background

Can private sector energy help push CSME forward? 14 Renatta Mohammed looks at how Barbados Prime Minister Mia Mottley hopes to give CSME new energy

Companies welcome CSME movement

19

Karibbean Flavours and Guardian Life share their CSME experiences with Sasha Murray

The voice of business: labour relations

Business profile: Angela Lee Loy 22

30

Pat Ganase talks to one of Trinidad and Tobago’s most distinguished business leaders about her career and outlook, and about building her group of companies

CONTACT talks to three business leaders about the industrial relations climate in Trinidad and Tobago and how it could be improved

The Chamber’s growth and learning corner 35

Are you ready for a natural disaster?

Three business leaders tell CONTACT what they have been reading as they seek continually to expand their horizons

24

Trinidad and Tobago is vulnerable to cyclones, earthquakes and floods, as well as other hazards. Ravindranath Goswami explains why businesses and their leaders need to be prepared

Innovation in business: meet the “agripreneurs” 36 Jeanette Awai meets young entrepreneurs building innovative projects in the agriculture sector

Five top facts about the Caricom market 41 Test your knowledge about our regional market and its members with Sasha Murray

Economic outlook 43 The Chamber’s experts review the current global and regional situation and look ahead towards the rest of 2019

Energy update 46 How is our vital oil and gas sector doing? Here’s the recent data

Welcome to new members 48 The Chamber extends a warm greeting to members who have recently joined

4

JUNE 2019

chamber.org.tt

The voice of business in Trinidad & Tobago

Published by

The Trinidad and Tobago Chamber of Industry and Commerce

Columbus Circle, Westmoorings, Port of Spain, Trinidad and Tobago PO Box 499, Port of Spain • Tel: (868) 637-6966 • Fax: (868) 622-4475 Email: chamber@chamber.org.tt • Website: www.chamber.org.tt

Tobago Division: ANSA McAL Building, Milford Road, Scarborough, Tobago Tel: (868) 639-2669 • Fax: (868) 639-2669 Email: tobagochamber@chamber.org.tt Produced for the Chamber by MEP Publishers (Media & Editorial Projects Ltd)

6 Prospect Avenue, Maraval, Port of Spain, Trinidad and Tobago Tel: (868) 622-3821 • Fax: (868) 628-0639 Email: info@meppublishers.com • Website: www.meppublishers.com

Editor Natalie Dookie Online editor Caroline Taylor General manager Halcyon Salazar Page layout & design Kriston Chen Advertising Evelyn Chung, Tracy Farrag, Mark-Jason Ramesar Production Jacqueline Smith Editorial assistants Shelly-Ann Inniss, Kristine de Abreu DISCLAIMER Opinions expressed in Contact are those of the authors, and not necessarily of the Trinidad and Tobago Chamber of Industry and Commerce or its partners or associates.

CONTACT is published quarterly by the Trinidad and Tobago

COURTESY KARIBBEAN FLAVOURS

Chamber of Industry and Commerce (TTCIC). It is available online at www.chamber.org.tt/media/the-contact-business-magazine ©2019 TTCIC. All rights reserved. No part of this magazine may be reproduced in any form without the written permission of the publisher.

chamber.org.tt

6

JUNE 2019

chamber.org.tt

Editor’s note

Editor’s note So why are we still discussing and not benefitting from full CSME implementation in 2019? In this issue of CONTACT, we explore these concerns and more in CSME: Getting it right!

Even the world’s largest trading bloc wants the Caribbean to get to work on advancing the Caricom Single Market and Economy (CSME). Having invested several millions over the past decade, to support the development of CSME and the implementation of the European Partnership Agreement, the European Union (EU) wants to see action. The private sector and citizens in the region want the same.

The EU is the world’s largest economy, with a GDP per head of US$28,000 for its 500 million consumers. Its founding charter, the Treaty of Rome, was signed in 1957 by six states. Today the EU comprises 28 member states (including the UK pending Brexit). How has the CSME fared in comparison?

Established three decades ago in 1989, the CSME was a strategic project intended to deepen regional integration and better respond to the challenges and opportunities presented by globalisation. Not all 15 Caricom member states are part of the CSME. Montserrat requires entrustment (approval) from the United Kingdom. The Bahamas has stated its intention not to get on board.

Haiti is a partial participant, with full integration carded for 2020 (when it will add another 11 million consumers to the market).

So why are we still discussing, and not benefitting from full CSME implementation in 2019? Is it lack of political will? Not enough strong decisive leadership in the region? In this issue of CONTACT, we explore these concerns and more in CSME: Are we getting it right?

We examine whether small economies can realise big plans in the current geopolitical and economic climate of the region. We look at the Barbados Prime Minister's plans and priorities for CSME; and then consider the realworld CSME experiences of Karibbean Flavours and Guardian Life.

In this issue of CONTACT, we also introduce several new features and concepts, starting with our “Five Top Facts” about Caricom markets. You will also hear from key business leaders on the labour relations climate in Trinidad and Tobago, in “The Voice of Business”. We launch our new business profile feature with “Angela Lee Loy: breaking business barriers”. Our second new feature, “Innovation in business”, examines Caribbean Cure and Epilimnion Aquaculture agri-businesses. As we prepare for the next rainy season, consider if your business is ready for a natural disaster.

We close off our new content with “The Chamber’s Learning and Growth Corner” – want to improve the way you do business? Check out what business leaders are reading. Finally, the Chamber examines economic prospects for the region, and delves more closely into the local energy sector’s performance.

It’s always a privilege to welcome new members of the Chamber and of course, new readers to CONTACT. We look forward to your feedback on this packed issue: let us know what you think of the new content.

Natalie Dookie, Editor

chamber.org.tt

JUNE 2019

7

COURTESY CARIBBEAN COMMUNITY

CSME: Are we getting it right?

Small economies,

big plans

Established 30 years ago with lofty ideals, the intention of the Caricom Single Market and Economy (CSME) was to provide more and better opportunities for employment, trade and investment. What have we achieved over the past three decades? How can we get CSME right, in order to advance the region’s growth and development?

by Colin Soo Ping Chow Executive Chairman, EY Caribbean

When the Caricom Single Market and Economy (CSME) was established in 1989, the vision was clear: we would create a single, regional economic zone, not unlike the European Union (EU), which would be an attractive destination for business and foreign investment. This would be facilitated by the free movement of labour, and supported by laws and regulations designed to grow intraCaribbean and extra-regional trade.

Thirty years have since passed, and we are nominally closer to this goal.

several problems including potential defaults on foreign loans as foreign exchange reserves declined precipitously.

To address these challenges, Barbados increased its debt, maintained its fixed exchange rate, and continued its expansionist policies.

Guyana, on the other hand, in trying to deal with its own difficulties, adopted a strategy which involved the nationalisation of major enterprises across a wide spectrum. This strategy eventually failed, and the country’s economy fell into recession.

The background

Impact of economic challenges

In the 1990s, immediately after the formation of the CSME, On reflection, one can argue that the ambitions set out in four of the larger Caricom member states – Trinidad and the 1989 Grand Anse Declaration (for the advancement Tobago, Barbados, Jamaica and Guyana – simultaneously of the integration movement) were always going to be encountered serious economic difdifficult, though not impossible, to On reflection, one can argue that the achieve. Today, by and large, the ficulties. Dr Alvin Hilaire, then a ambitions set out in the 1989 Grand senior economist with the InterCSME objectives have not been Anse Declaration (for the advancement national Monetary Fund, wrote met. an article reviewing the countries’ While some commentators of the integration movement) were strategies for economic stabilisa- always going to be difficult, though not can justifiably criticise Caribbean tion. governments for their lack of execimpossible, to achieve Trinidad and Tobago and ution, one view is that it would Jamaica both sought to address their difficulties with a have been incredibly difficult to achieve common market range of remedial actions including debt reprofiling, major status while the larger economies in the trade zone currency devaluations, public expenditure cuts, rationaliwere seriously afflicted by economic challenges. Out of sation of state assets, and intervention in the financial sernecessity, these governments became internally focused on vices sector. These measures came at a huge cost to their their individual economic priorities. It is arguable, then, respective economies. that the interests of the wider group of member states Barbados’s major sectors – tourism, sugar and would not have been aligned regionally – a pre-requisite manufacturing – were all declining, and the country faced for achievement of the CSME goals.

chamber.org.tt

JUNE 2019

9

CSME: Are we getting it right?

Today, almost three decades since the formation of the CSME, many Caricom member countries are still experiencing challenging economic circumstances

The return of sustainable growth in 2000 and beyond was then impeded by the 2009 global financial crisis. This affected most of the world’s more developed countries, and ultimately led to long periods of economic decline in Caribbean countries highly dependent on the offshore sector, and other countries vulnerable to external shocks.

Today, almost three decades since the formation of the CSME, many Caricom member countries are still experiencing challenging economic circumstances.

This has been exacerbated in no small measure by the external pressures exerted by the EU and the Organisation of Economic Cooperation and Development in their efforts to regulate the financial systems of these countries. These issues and other internal pressures have resulted in the Caribbean states, with few exceptions, being unable to attract adequate levels of foreign direct investment; and economic growth is anemic at best.

The region's challenge So what does the future hold for small economies in a world experiencing trade wars, Brexit, and crisis in our neighbour Venezuela?

So what does the future hold for small economies in a world experiencing trade wars, Brexit, and crisis in our neighbour Venezuela? How do small nations realise big plans in a world fraught with major geopolitical events?

How will Caricom deal with these challenges, which have potentially disastrous consequences for regional economies?

These are challenges that affect citizens in all our countries; they require collaboration between businesses and governments in the region; they can only be addressed by doing things differently – by innovating. No longer can the Caribbean ignore the impact of these global trends and the potential debilitating effects on our economies.

As 2020 approaches and we continue to look to the future, it is imperative that our countries, despite lacking scale, develop bigger, bolder plans if we are not to be left behind. There is a unique opportunity for regional governments to work with the private sector to jump-start the realisation of the CSME vision.

First, we need to transform the public sector, the way we do business, and put the needs of our citizens at the forefront.

Globally, transformation is driven by four mega-trends currently disrupting the way we do business and how we compete: • Technology: The rapid evolution of technology is enabling far-reaching

changes in society, and agile responses to these changes are being demanded of business and government at a faster rate than ever before.

• Transparency: The demand for increased transparency in business and

government is transforming how we communicate to increase public and private stakeholder engagement.

• Talent: The evolution of our talent needs will demand fundamental

changes in our education systems as governments and business seek to develop a technologically-based workforce that can drive change and competitiveness for business and government.

• Trade: The business and politics of global trade are being reshaped, and

government and business need to embrace new ways of helping, not hindering, regional and international trade.

These four T’s, together with climate change and aging demographics, are serious issues which governments in small, fragmented markets can face with a collaborative effort across borders and across sectors.

10

JUNE 2019

chamber.org.tt

CSME: Are we getting it right?

Caricom and CSME member states, 2019 All 15 countries below are Caricom member states. These are the 12 full CSME member states: Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, St Kitts and Nevis, St Lucia, St Vincent and the Grenadines, Suriname and Trinidad and Tobago.

Montserrat requires entrustment (approval) from the UK. Haiti is a partial CSME participant, with full integration carded for 2020.

The Bahamas is not a participant.

Key facts on CSME: What is the CSME?

Key elements of CSME are:

The CSME is a single large economic space, created through the removal of restrictions and resulting in the free movement of:

1. Provision for the free movement of goods, services and people

• • • • •

Goods Services Labour/Skills Capital Technology

6

million

MARKET SIZE (Current)

+11

million

With Haiti in 2020

2. Provision for the free movement of capital: through convertibility of currencies (or a common currency) and an integrated capital market, such as a regional stock exchange 3. A Common External Tariff and free circulation of goods imported from extra-regional sources 4. The establishment of a common trade and economic policy 5. Right of establishment of Caricom-owned businesses in any member state without restrictions 6. Harmonisation of laws

Milestones • The decision was taken in 1989 to establish the CSME in order to deepen the integration movement.

• On 1 January, 2006, the Single Market component of the CSME came into being, initially involving Barbados, Belize, Guyana, Jamaica, Suriname, and Trinidad and Tobago.

The Caricom passport: • Heads of Government agreed to the issuance of a Caricom passport by member states as a defining symbol of regionalism.

• All twelve independent member states participating in the CSME now issue the Caricom passport.

Source: Natalie Dookie, Editor, CONTACT

chamber.org.tt

JUNE 2019

11

12

JUNE 2019

chamber.org.tt

CSME: Are we getting it right?

Begin the journey now To realise the CSME vision, business and government must collectively embrace digital transformation as an imperative, not an option

Colin Soo Ping Chow Executive Chairman, EY Caribbean

The CSME will only accomplish its ambitious goals if businesses, governments and civil society are prepared to collaborate, reinvent themselves, and build a single market and economy that is fit for the transformative age. That’s how we can get it right

To realise the CSME vision, business and government must collectively embrace digital transformation as an imperative, not an option. This involves much more than just acquiring new technology. It requires an overhaul of organisational structures, governance, work processes, culture, and – most importantly – mindset. Without this new mindset, real progress will remain difficult to achieve.

There is sufficient empirical evidence to support the proposition that governments which effectively harness the power of digital transformation can create better outcomes for citizens.

The benefits of public investment in technology can be seen in the example of Estonia. One of the smallest countries in Europe, with a population of 1.3 million, Estonia only gained independence in 1991. Since then, it has transformed itself, through innovation in the public sector and investment in technology, from a country with little public infrastructure to a leader in e-government.

It is estimated that 99% of all instances where Estonian citizens interact with their government are through digital technology. E-government can provide services more effectively and efficiently, find new solutions to policy challenges, commercialise some public services, and develop new sources of revenue.

Like Estonia, CSME investment in digital transformation has the potential to transform the entire region.

The bottom line In summary, the Caribbean cannot continue to inch forward step by step and still keep pace with today’s world. The CSME will only accomplish its ambitious goals if businesses, governments and civil society are prepared to collaborate, reinvent themselves, and build a single market and economy that is fit for the transformative age. That’s how we can get it right.

The CSME set lofty goals in 1989, and the limited progress to date forces us to ask some uncomfortable questions. Are we motivated to take the necessary steps and actions to build a real common market, or are we still guarding our individual castles? Can the Caribbean emerge stronger and more unified despite differences in size, sectors, opportunities and challenges?

The answer is YES. But the goals of the CSME can no longer be set in stone. They need to be supported by a dynamic organisational structure that is autonomous, well-funded, and backed by governments which recognise that, in a rapidly-evolving environment, the economic models of yesterday may not be relevant tomorrow.

The fourth industrial revolution has arrived. The time to begin the journey is now.

chamber.org.tt

JUNE 2019

13

CSME: Are we getting it right?

Can private sector energy help to push CSME forward?

Barbados Prime Minister Mia Mottley has promised to unlock the growth potential of the CSME. The business community has pointed to a disconnect between intent and reality. How can the private sector help with the advancement of CSME?

M

ia Mottley, Prime Minister of Barbados with lead responsibility for the Caricom Single Market and Economy (CSME), is committed to resuscitating the regional integrated development strategy – and in a historic move, has invited the private sector and labour to help do so.

Caricom’s Secretary General and Heads of Government have openly conceded that the CSME has been sluggish in delivering on its original intent.

Mottley agrees and is acting with urgency.

“Our only way out is to turn this region into an economic power of note within the Americas.

It cannot happen with individual countries trying to put one plus one, one by one by one. But if we come together, in the context of a strong single economy and a strong single market, all of a sudden it looks different,” she has stated. “That battle towards dominance requires a Usain Bolt approach, not a Carnival-like (chip) approach.”

Speaking at the 14th regional Investments and Capital Markets Conference in Jamaica at the start of 2019, Mottley reiterated that the decision to include stakeholders such as labour, the media, youth and the private sector, is intended to “unlock growth within the region”.

“Our political leadership must facilitate and shepherd, not control and stifle,” she declared in her maiden address. “What is most needed, I am convinced, is to give our people the scope to express their natural inclination to get things to a conclusion in ways that are productive and beneficial to the region as a whole. Our people should not have to jump through hoops to make this happen.”

14

JUNE 2019

chamber.org.tt

COURTESY PMO BARBADOS

by Renatta Mohammed Regional Business Development Consultant, iSolutions Caribbean



Prime Minister of Barbados Mia Mottley addresses the press after a special Caricom meeting on CSME

Unity is essential But what’s in it for the individual markets, the private sector and the people of the Caribbean? The initial vision cites the main benefits as: “more and better opportunities to produce and sell goods and services and to attract investment; greater economies of scale and increased competitiveness”. The business community has publicly down-cried the disjoint between intent and reality, but acknowledges that the time is right to re-visit the CSME, arguing that if we are to thrive within a changing global economic climate, we must move collectively.

This climate has contributed to Mottley’s sense of purpose.

The survival of small states such as ours, she has said, depends on unity, “not just economically but in the world of diplomacy”. More than ever, “we

CSME: Are we getting it right?

THE BENEFITS OF FULL IMPLEMENTATION OF THE CSME BUSINESS

CITIZENS

•• Access to a larger market of consumers

•• Wider choice of goods and services

•• Strengthened competitiveness

•• Lower consumer prices

•• Creation of regional companies

•• Increased opportunities to invest via

•• Harmonised standards of production •• Increased economies of scale

COUNTRIES

direct stock ownership or mutual fund investments

• Greater employment, travel

and study opportunities

CSME

•• Enhanced investment opportunities •• Common voice in

in international trade negotiations •• Increased inflows of new capital, entrepreneurs and technology •• Added intra-regional cooperation on human and social development •• Improved services sector

COURTESY CARIBBEAN COMMUNITY

need to stay together”, using Caricom as the vehicle to allow regional countries to take “principled decisions”. To ensure that CSME remains a priority among the various national goals within the region, Mottley has moved to convene prime ministerial sub-committee meetings on a quarterly basis with annual stakeholder consultations; and, coming out of the December 2018 meeting in Trinidad, the St Anns Declaration was crafted.

This newest manifesto includes an amendment to allow representatives of the private sector and the Caribbean Congress of Labour to participate  The Caricom Secretariat building, Georgetown, Guyana in Caricom Heads of Government meetings, giv- be provisionally applied, because we do not have ing both business and labour a voice at the head enough member states who have signed; and that, table. It also welcomes Haiti’s commitment to full in spite of the declaration in Montego Bay [July integration carded for 2020, which will add another 2018], we are not in a position to guarantee, in accordance with the treaty . . .

11 million consumers to the market. The St Anns Declara- The business community has publicly a framework for dependents tion speaks to the challenges down-cried the disjoint between intent and spouses.”

She also spoke of beof our times and reflects and reality, but acknowledges that Mottley’s leadership style of the time is right to re-visit the CSME, ing “a bit embarrassed” that, openness and inclusion. arguing that if we are to thrive within a having taken decisions on changing global economic climate, we the movement of agricultural workers and security Frustration must move collectively guards during the December But already there are hints of frustration. After a March 2019 summit in St Kitts, 2018 meeting in Trinidad, the tail appeared to be Mottley said she found it difficult to face the media wagging the dog. As an example, she suggested and inform the region “that the contingent rights, that the Council for Human and Social Developthe protocol that was signed in July, still cannot ment appeared to be “wagging” the Caricom lead-

chamber.org.tt

JUNE 2019

15

COURTESY CARIBBEAN COMMUNITY

CSME: Are we getting it right?

ST ANN’S DECLARATION ON CSME Key agreements — Heads of Government of the Caribbean Community (Caricom), meeting in Port of Spain, Trinidad, 3-4 December, 2018: •• Agreed on a formalised, structured mechanism to facilitate dialogue between the Councils of the Community and the private sector and labour •• Agreed to amend the Treaty to include as Associate Institutions representative bodies of private sector and labour •• Agreed that that those Member States so willing would move towards full free movement within the next three years •• Mandated that steps be taken to deepen cooperation and collaboration between the Secretariats of Caricom and the OECS to avoid duplication and maximise the use of scarce resources •• Agreed to reinforce the operation of security mechanisms to ensure the integrity of the regime allowing the free movement of Caricom nationals •• Agreed to examine the re-introduction of the single domestic space for passengers in the region •• Agreed to work towards having a single security check for direct transit passengers on multi-stop intraCommunity flights •• Agreed to include agricultural workers, beauty service practitioners, barbers and security guards in the agreed categories of skilled nationals who are entitled to move freely and seek employment within the Community •• Reiterated that a skills certificate issued by one Member State would be recognised by all Member States •• Agreed to complete legislative and other arrangements in all Member States for all categories of free movement of skilled persons •• Agreed to finalise the regime that permits citizens and companies of the Community to participate in the public procurement processes in Member States by 2019 •• Agreed to take all necessary steps to allow for mutual recognition of companies incorporated in a Caricom Member State •• Welcomed Haiti’s commitment to full integration into the CSME by 2020 •• Appointed Professor Avinash Persaud to lead a restructured Commission on the Economy to advise Member States on a growth agenda for the Community.

Source: CARICOM, 2019, https://caricom.org/media-center/ communications/press-releases/st-anns-declaration-on-csme

16

JUNE 2019

chamber.org.tt



Caricom Heads of Government with Cuban President Miguel Díaz-Canel in Jamaica

ers, since it was yet to reach a consensus on who is an agricultural worker in the Caribbean.

“It has to do with the fundamental governance of this institution because we need to be dealing with the strategic issues here – and not having to now remove the cobweb,” she warned. But cobweb removal seems to be a necessary early step if this resurgence of energy is to amount to tangible achievements.

The Heads of Government have proposed that, while the CSME must remain at the heart of regional integration, it must move beyond functional cooperation – and regional governments and the private sector are being asked to share that vision “Major policy decisions and the adoption of legal instruments take much too long to be negotiated. We must do more and do it more quickly,” Caricom’s Secretary General, Ambassador Irwin LaRocque, has been quoted as saying, even as he itemised accomplishments of the CSME over the last 30 years.

Mottley has also cited “psychological impediments and the closed mindsets in some quarters of officialdom” as some of the reasons for the under-achievement of

Mottley says that, the survival of small states such as ours, depends on unity, “not just economically but in the world of diplomacy”.

More than ever, “we need to stay together”, using Caricom as the vehicle to allow regional countries to take “principled decisions” the CSME. She explained that because the practical implications of decisions are sometimes not worked out beforehand, and the recording of decisions is often not clear and precise, “these [decisions] fall victim to bureaucratic inertia or resistance from those who did not

COURTESY PMO BARBADOS

CSME: Are we getting it right?



Barbados Prime Minister Mia Mottley at the Intersessional Meeting of Caricom Heads of Government in St Kitts

participate meaningfully in their design or have not been fully enlightened as to their positive purpose.”

Share the vision The Heads have proposed that, while the CSME must remain at the heart of regional integration, it must move beyond functional cooperation – and regional governments and the private sector are being asked to share that vision. Mottley also acknowledges the need for the regional Heads to continue self-analysis and introspection.

She has pointed to the lack of movement on regional travel by air and sea – and is now treating that

as a matter of priority. She has noted that there are elements to the free movement of people that still need to be addressed. She has announced that Barbados will be removing the visa restrictions for Haiti, a signatory to the Revised Treaty of Chaguaramas. At every given opportunity, Mottley has called for better communication and sharing of information across the region.

The original list of sectors to focus on under the CSME was long. Some goals have been achieved – but not enough to be felt in any substantial way by the region’s business community and other key stakeholders. So Mottley has championed a new and narrower focus. Four key sectors for development have been identified – renewable energy, agriculture and food security, information and communication technology, and maritime and air transport.

“The bottom line is that our economies are not necessarily capable of surviving on their own in this difficult and turbulent world . . . we need a greater level of population to drive economic growth, and smarter, seamless decisions to be able to fuel that economic growth,” Mottley said.

All eyes are optimistically upon the CSME’s newest instigator, plot twists and all.

ABOUT HAITI Although Haiti’s business climate is challenging, it is one of the most open economies in the region. Its legislation encourages foreign direct investment and provides the same rights, privileges, and protection to local and foreign companies.



11 Port-au-Prince million

Population

Capital

$766

US

GDP per capita

•• Most Haitian businesspeople speak English •• Haiti has preferential access to major markets including Canada, the US, and the European Union •• Four major international security-certified ports •• Two international airports offer daily flights between Haiti and the US •• There are few government controls or subsidies •• The transport, telecommunications and oil sectors attract most of the investors. More recently, construction, textiles, and the manufacture of automotive components have also attracted foreign investment •• Weekly shipping service from Trinidad to Haiti •• Level playing field for T&T exporters, as all countries face the Most Favoured Nation (MFN) rate.

Sources: export.Gov, Haiti-Market Overview, https://www.export.gov/article?id=Haiti-Market-Overview; exporTT, Why Haiti?, https://exportt.co.tt/2018/06/21/haiti-is-next-up-on-our-agenda/

chamber.org.tt

JUNE 2019

17

Services

The human benefit of machine learning COURTESY CHRISTINA MORELLO / PEXELS.COM

Visit accaglobal.com/digital

18

JUNE 2019

chamber.org.tt

CSME: Are we getting it right?

Companies welcome CSME movement

by Sasha Murray Freelance writer

The CSME remains a work in progress. Designed to let the region capitalise on its natural, human and financial resources, its potential remains mostly untapped. Two Trinidad-based firms, Karibbean Flavours and Guardian Life, explain the impact that the CSME has been having on their regional businesses

COURTESY KARIBBEAN FLAVOURS

The slow progress of CSME integration “has resulted in a decline in economic benefits and trade performance in the region when compared with the 1970s,” according to panellists at the annual general meeting (AGM) of the Trinidad and Tobago Chamber of Industry and Commerce. Held earlier this year in April, the theme of the AGM’s lunchtime discussion was the CSME. So the recommendation made by the Caricom Review Commission in its 2017 report – to amend the treaty governing Caricom to institutionalise the involvement of the private sector – is welcome. Barbados Prime Minister Mia Mottley, who has lead responsibility for the CSME within Caricom, has also made it clear that she accepts the change: the private sector will have an integral part to play.

In the business world, the hope is that this enhanced role will finally result in the full integration of the single market and economy. Better access to wider markets, a larger consumer base, increased economies of scale, enhanced investment opportunities, and increased competitiveness, are all keenly anticipated.

To underline the importance of accelerating CSME’s evolution, let’s examine the experience of two Trinidad and Tobago-based companies: RHS Marketing Limited’s Karibbean Flavours brand, and Guardian Life of the Caribbean Limited.

Karibbean Flavours: CSME helped grow our intraand extra-regional imports Since 1996, Ravi Sankar, founder of RHS Marketing Limited, has been manufacturing and distributing a wide range of premium seasonings, spices, condiments, drinks, essences and browning products under the Karibbean Flavours brand. Many of the products have their roots in the region’s exotic cuisine and reflect a combination of cultures and tastes.

The CSME has worked well for his company, Sankar says, helping it to grow from a local supplier to a regional

exporter. Starting with a small shipment to Antigua, Karibbean Flavours now has a presence on store shelves in several Caricom countries, including Barbados, Dominica, Grenada, Guyana and Suriname.

“Regional distributors found it economical to purchase from us under the CSME, as compared to the United States, because there were no taxes on imports from Trinidad and Tobago. Through the certifying body in Trinidad we were able to get Caricom certificates for all the products we produce, and this made it attractive for buyers.”

“We’d like to see some real initiatives come out of CSME, that make the ease of doing business across the region better and that will ultimately benefit the populations as a whole” When supply is not available locally, Karibbean Flavours has also benefitted from duty-free access to ingredients such as pepper and thyme, sometimes at lower prices.

The process is not without its challenges, however.

Sankar explains that, when shipping products, he sometimes experiences difficulties in obtaining the relevant documents on time from customs and excise. The delays result in added costs for storage, among other things.

chamber.org.tt

JUNE 2019

19

CSME: Are we getting it right?

“As a pan-Caribbean group, we are starting to see the impact of regional integration, where our customers’ behaviours are changing. For example, if customers from Jamaica have a policy in Trinidad, they want to know more about how we effect these transactions. So it’s really about having the framework in place, to allow the free movement of people  Customer Appreciation Day and 10th anniversary celebrations in Barbados and the free movement of business to grow, and have greater access to markets and greater convenience.” Pascal Guardian Life: a fully implemented also notes that, even though “we all have very common backgrounds, there are multiple regulators with multiple CSME benefits everyone Guardian Life is a dynamic insurance and financial financial standards to be dealt with.” institution which provides financial services across four While hoping that ongoing work will yield tangible major territories in the English and Dutch Caribbean, CSME benefits for all, “we’d like to see some real initiatives including Trinidad and Tobago, Jamaica, and Barbados. come out of it, that make the ease of doing business Established in1980, with head offices in Westmoorings, across the region better and that will ultimately benefit Trinidad, Guardian Life is engaged in underwriting all the populations as a whole. Where we realise investment classes of long-term individual and group life, health opportunities through expanded markets. This could only and pensions insurance business, as well as associated redound to everyone’s benefit in the long run: governments, investment activities. policy holders, and the organisations in between.

20

JUNE 2019

chamber.org.tt

COURTESY GUARDIAN GROUP BARBADOS

Karibbean Flavours products can also be found beyond the Caribbean, in the United States, the United Kingdom and Canada. Sankar says that having a regional presence has helped the firm expand internationally. “With our brand well represented in Caricom, it is easier for diaspora and tourist consumers who reside in international markets to recognise it.”

Advertorial

Export-Import Bank of Trinidad and Tobago The Export Import Bank of Trinidad and Tobago Limited (EXIMBANK) remains the only official Export Credit Agency (ECA) in the country. It has emerged out if what was formerly the Trinidad and Tobago Export Credit Insurance Agency (EXCICO), which was established in 1973 by the Government to promote the export of goods and services. This allows regional buyers access to a wide range of manufactured goods on credit terms.

EXIMBANK’s operations are funded principally by its own financial resources accumulated from profitable trading operations over the years, and by various lines of credit provided by major financial institutions. EXIMBANK remains a profitable, well managed, state owned financial institution working with local and regional financial institutions and pursuing a business philosophy of promoting selective and controlled expansion of the export sector.

Products & Services RAw MAtERIAl FINANcINg This is a short-term loan/direct financing that the EXIMBANK extends to an approved company to assist in the payment of inventory, raw materials, semi-finished or finished products. Once goods are received, the exporter can now prepare products for local sale or export. This facility is offered at competitive rates and is designed for trade transactions that are short-term and self-liquidated.

The tenor is customised to the exporter’s needs and usually ranges from 30 to 270 days.

FActoRINg ANd dIscouNtINg This facility provides short-term financing to exporting manufacturers, distributors and service providers.

Businesses receive financing in the form of a loan between 85 and 95 per cent of the invoice value of export sales, which must be repaid from the assigned proceeds of payments from EXIMBANK’s approved buyers. This facility aims to bridge the gap between the settlement of production costs and export sales receipts, allowing a business to accelerate cash flow and shorten operating cycles.

The tenor is designed to fit the relationship between the exporter and their buyers. The credit period usually ranges from 30 to 120 days Bill of Lading (B/L) or Drawdown (DD).

AssEt FINANcINg This facility can assist manufacturers seeking to perform equipment upgrades to improve the quality of their export products or for renovations of their premises.

The tenor is designed to the exporter’s needs and usually ranges from one to seven years.

EXpoRt cREdIt INsuRANcE This facility provides risk protection to exporters against payment default by foreign buyers on goods and services exported on credit terms. With this protection, exporters have the confidence to venture into emerging markets, thereby expanding their export thrust. With the EXIMBANK credit insurance policy, exporters can obtain protection against political and commercial risks.

Premiums vary depending on the buyer’s creditworthiness, payment terms, and the economic political environment. Currently the premium rate ranges between 1.6 per cent and 3.5 per cent.

FoREX FAcIlIty This facility was established by the Government of Trinidad and Tobago in early 2018 to facilitate export expansion. This facility is available to established and existing manufacturers who are currently exporting or have a confirmed export order. Start-ups or fledgling manufacturers with confirmed orders will also be favourably considered. Small to medium sized (SME) companies with annual sales from TTD$50K but not exceeding TTD$100M are eligible to apply. Flexibility will be considered based on export percentage.

Exim House #30 Queen’s Park West P.O.S., Trinidad & Tobago, W.I. Phone: (868) 628-2762 Fax: (868) 622-3545 Email: eximbank@eximbanktt.com www.eximbanktt.com

Voice of business

the voice of business on . . .

Labour relations What is your view of the current labour relations climate in Trinidad & Tobago? How can it be improved?

The current labour relations climate is a challenging one. We are still seeing a lot of issues where trade unions are difficult to work with. In a stagnating economy such as ours, it is an especially difficult time for labour, and unfortunately unions still deem the employer an aggressor, which creates an increasingly volatile situation.

For years the Chamber has advocated for a balanced judicial composition of public and private sector representation in the IR court Reyaz Ahamad President, Trinidad & Tobago Chamber of Industry & Commerce; Executive Director, Southern Sales and Service Company Limited

Recent examples, such as the restructuring exercises at Petrotrin and TSTT, demonstrate the need for a more conversational approach to industrial relations, where the employee and the employer work together to resolve matters. The world of work is changing, and nearly every sector in Trinidad and Tobago has evolved and modernised. We need a more robust industrial relations environment in keeping with this.

The climate can improve if workers and employers have more discussion on how to move forward. Too often, stakeholders perceive that the employer is being unfair, but we need to examine the entire industry that we are operating in and consider what is reasonable and unreasonable.

There is too much of a strong divide, so I hope to see the aggressive approach of the labour unions change, and the industrial court embrace a more holistic approach as we move forward.

We are also working with an Industrial Relations Act that is over 46 years old. This needs to be overhauled to align with global best practice. For years the Chamber has advocated for a balanced judicial composition of public and private sector representation in the IR court, so we welcome the recent appointment of new judges, and look forward to seeing how the climate will continue to evolve in Trinidad and Tobago.

We are also working with an Industrial Relations Act that is over 46 years old.

This needs to be overhauled to align with global best practice.

22

JUNE 2019

chamber.org.tt

Voice of business Unproductive, unhealthy, destructive and anachronistic: last year Trinidad and Tobago’s labour relations were ranked lowest in the global competitiveness index, out of 140 nations. The year before it was 133 out of 134 nations. So things are getting worse at a time in our history when they really need to get better.

The world has never been more competitive, but T&T’s industrial relations are steeped in the belief that all commercial employers are inherently exploitative, and only trade unions can keep them in check. Where that is the prevailing belief, adversarialism and suspicion are inevitable. And this saddens me on a very profound level.

The climate can be easily improved, as the assumption of natural enmity between employer and employee is simply not valid. Most employers are represented by good people who believe that when their company wins, their Teresa White employees win; and that profit is for sharing and for future investment in Group Human Resource Director, ANSA McAL Limited sustainable livelihoods.

Most employers care deeply about the personal circumstances of their employees and families; and most believe in democracy, equality and engagement. Our laws and institutions need to ensure that these noble sentiments are applied in practice, and that there is consequence for the minority of employers who don’t operate that way.

These institutions must be just and equitable; they shouldn’t see their role as making employers pay for the social ills that still plague our nation. They should view employees as independent and self-directed citizens who are entitled to a safe environment, decent earnings, and constructive working relations; and those who fail to live up to their contractual obligations should face the consequences.

But most of all, these institutions should be functioning in the background; employers and employees should be allowed to cooperate and get on with the task at hand. There is so much that needs to be done. Make no mistake: it isn’t our success, but our survival that depends on it.

The current climate, from my perspective as an industrial relations litigator and an industrial relations practitioner, is not as useful as it could be. It is very adversarial and confrontational, not designed to solve problems.

The labour environment has not changed for decades. Our industrial relations tools and mechanisms are not conducive to an efficient and effective resolution of disputes. The legislation needs redefining, and to be codified into a single code.

Due to the absence of modern legislation, there is too much room for ambiguity and for people’s opinions to be parachuted into what they think is good industrial relations. The punitive effects of judgements and decisions by the IR court are hurting business. Our IR climate needs to align with the new millennium, and to align globally to foster and encourage the growth of new and existing businesses, as well as foreign direct investment.

Derek Ali The labour relations environment can be improved in two key ways. First, Member, Employment & Labour we need a fundamental shift in thinking by labour about how it views business Relations Committee Trinidad & Tobago Chamber and capital. No reciprocal action is needed as to how business views labour, of Industry & Commerce; because business has already gone a long way with respect to aligning itself attorney at law with what is needed to manage manpower in this new age.

Second, we need legislative reform. We need a labour code that conforms to basic terms and conditions, rights and regulations. The current legislation is conducive to people diving in with their own opinions in spaces where the legislation is deficient. That is why some judgements are hurting business and creating a toxic labour relations climate.

chamber.org.tt

JUNE 2019

23

COURTESY THE MINISTRY OF WORKS AND TRANSPORT OF TRINIDAD AND TOBAGO

Are you ready for a natural disaster?

ď °

Heavy rain caused major losses and devastation in south Trinidad

Have you ever wondered what would happen in Trinidad and Tobago in the event of a large earthquake, a tsunami, or a major hurricane? Would you and your staff know what to do? Would your business survive? Are you fully insured, or just hoping it will never happen?

by Ravindranath Goswami President, REACT Trinidad and Tobago Council

24

JUNE 2019

chamber.org.tt

Disaster preparedness Disaster preparedness is a hot topic during and after events such as fires, tropical storms, flooding, and earthquakes. In quieter times, the need to plan and invest in solutions tends to become less urgent. But a real national conversation is needed around the concept of disaster risk reduction. In the business world, we must also consider business continuity management (BCM).

Hazards A hazard is a source of potential damage, a threat. Hazards can be broadly classified into two categories – natural and anthropogenic (i.e. related to human behaviour and activity).

NATURAL HAZARDS

ANTHROPOGENIC HAZARDS

Storms Lightning Floods Landslides Earthquakes Tsunamis Volcanic activity

Chemical Biological Nuclear Crime Terrorism Combat/wars Famine Cybersecurity

According to the Association of Caribbean States (ACS), between 1990 and 2008 the Caribbean experienced 165 natural disasters, with total costs estimated at US$136 billion, of which half was direct economic impact

Whether a hazard leads to a disaster is largely dependent on vulnerability, risk, mitigation measures, and overall resilience.

Term

Definition

Vulnerability

A weakness in a system that increases susceptibility to impacts

Incident

An unplanned occurrence that requires a response

Disaster

An occurrence, often sudden, that causes great damage or loss of life

Mitigation

Proactively minimising the impact and loss, and facilitating recovery from an incident

Resilience

Ability to adapt to or recover from hazards, achieved by planning ahead

Risk

The probability of something failing (likelihood) times the consequence of it happening (impact, damage or loss)

Risk and vulnerability Trinidad and Tobago’s main areas of disaster risk in the period 1990-2014, from an economic standpoint, were seismic and hydrometeorological, according to UNISDR (the United Nations Office for Disaster Risk Reduction). Fires accounted for the highest incidence of mortality

According to the Association of Caribbean States (ACS), between 1990 and 2008 the Caribbean experienced 165 natural disasters, with total costs estimated at US$136 billion, of which half was direct economic impact.

Trinidad and Tobago’s main areas of disaster risk in the period 1990-2014, from an economic standpoint, were seismic and hydrometeorological, according to UNISDR (the United Nations Office for Disaster Risk Reduction). Fires NATIONALLY REPORTED LOSSES (1990-2014) , TRINIDAD AND TOBAGO

7.1

11.2

Fire Landslide

27.9

55

Earthquake

21.4

Storm

64.3

Wind Storm Flood Flashflood Other

COMBINED ECONOMIC LOSSES

MORTALITY

N.B. All scale disasters without criteria

Source: United Nations Office for Disaster Risk Reduction (UNISDR), 2014

chamber.org.tt

JUNE 2019

25

Disaster preparedness accounted for the highest incidence of mortality.

In 2014, a vulnerability assessment published by the Office of Disaster Preparedness and Management (ODPM) in Trinidad and Tobago further detailed the actual and potential hazards to which the country is exposed.

ACTUAL AND POTENTIAL HAZARDS TO WHICH TRINIDAD AND TOBAGO IS EXPOSED HAZARDS LIST

Natural

Anthropogenic

FIRES EARTHQUAKES & AFTERSHOCKS

POLLUTION/CONTAMINATION: air, water, soil, etc

LIGNITE COMBUSTION

TSUNAMIS

LOOTING, TERRORISM, CYBER SABOTAGE MAJOR ACCIDENTS:

LIQUEFACTION

transport, infrastructure failure, etc

MUD VOLCANOES

INTERRUPTION OF SERVICES:

Environmental

LATERAL SPREADING

power failure, telecommunication, etc

not specifically include natural disasters. But, given the prevalence of ICT, special attention must be paid to the risks posed by cyber-security attacks (listed as #5) Global top ten risks for doing business 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Unemployment or underemployment Failure of national governance Energy price shock Fiscal crises Cyber-attacks Profound social instability Failure of financial mechanism or institution Failure of critical infrastructure Failure of regional and global governance Terrorist attacks

Source: World Economic Forum, 2018

Social Organisational

Seismic

What do disasters cost?

TROPICAL CYCLONES: hurricanes/tropical storms disturbances/depressions

FLOODING: land and sea borne

Hydrometeorological

Industrial Technological EXPLOSIONS

Biological

ODPM data for 2006-2010 show that the cost of damage associated with natural disasters is steadily increasing.

SPILLS, LEAKS, AND EMISSIONS:

LANDSLIDES: falls, topples, lateral spreads and flows

HIGH WINDS MICROBURSTS DROUGHT TORNADOES STORM SURGE LIGHTNING

FIRES

gas, chemicals & other hazardous substances

DISEASE

HAZARD LOSSES, 2006-2010 (TT$)

infectious/non-infectious: epidemics, pandemics, etc

HARMFUL ANIMALS:

bees, vectors: mosquitoes, rodents etc

POISONINGS

Source: Preliminary Vulnerability Assessment of Trinidad and Tobago, 2014, Office of Disaster Preparedness & Management (ODPM), www.odpm.gov.tt

The perennial risk of flooding and landslides is strongest in specific areas (see below).

The Pacific Disaster Centre (PDC) is currently engaged in a collaborative project assisting Trinidad and Tobago to complete a National Disaster Preparedness Baseline Assessment (NDPBA).

Business risk The World Economic Forum, in enumerating the “Top Ten” general risks for doing business (see table below), does Flood multi-risk map, Trinidad

Flood insurance claims (ATTIC)

Payments to farmers (MFPLMA)

Urgent Temporary Assistance (MPSD)

Emergency Relief Fund (MHE)

Relief items (ODPM)

TOTAL

Source: Disaster Risk Reduction Country Document, Trinidad and Tobago, 2014, Office of Disaster Preparedness & Management (ODPM), www.odpm.gov.tt

Landslide multi-risk map, Trinidad

Source: Office of Disaster Preparedness & Management (ODPM), www.odpm.gov.tt

chamber.org.tt

JUNE 2019

27

Disaster preparedness Disaster impacts Disasters affect both business interests and consumers in various ways.

activation, population densities, and wide geographical coverage.

Estimated human resource requirements: Trinidad & Tobago emergency organisations

Consumer impacts

Business impacts

Health issues, disease, poor sanitation, loss of life

Negative impacts on safety and security of employees and their ability to return to work

Disaster management agencies

ODPM

TEMA + Professional CERTs

MRD &LG

MUNICIPAL DMUs

Loss of property

Physical assets damaged, resulting in interruption of production and facilities

Establishment

40

70

56

56

Current staffing

N/A

48

56

52

Vacancies

N/A

22

0

4

Additional needed

N/A

0

0

28

Damaged records and items of sentimental value

Loss of records

Accessibility of goods and services

Delay in deliveries to customers

Increase in insurance rates

Supply chain disruptions

Family conflict

Communications channels constrained

Deferred life objectives

Delay in achieving strategic objectives. Some never recover

Reduced income and increased cost of living

Increased costs and reduction in profit

National disaster management authorities The agency responsible for disaster response and risk management at the national level is the ODPM. ORGANISATION STRUCTURE OF THE ODPM Chief Executive Officer

Deputy CEO Mitigation Manager

Operations Manager

Training & Education Specialist

Corporate Services Manager

Project Management Specialist

Mitigation, Planning and Research Unit

Preparedness and Response Unit

Public Information, Education and Community Outreach Unit

Administrative Support and Finance Unit

Project Management Unit

Source: Office of Disaster Preparedness & Management (ODPM), www.odpm.gov.tt

The ODPM is a centralised organisation that works closely with the Disaster Management Units (DMUs) of all the municipal corporations and the Tobago Emergency Management Agency (TEMA). The DMUs report to the CEOs of their respective corporations, with a dotted line to the Ministry of Rural Development and Local Government (MRD&LG).

ODPM has access to a pool of resources, and within the National Emergency Operations Centre (NEOC) leverages the supporting and responding agencies via the Emergency Support Functions.

Surveying the estimated human capital complement of the organisations shown below, reveals something of a resource constraint, given their responsibilities, 24x7

28

JUNE 2019

chamber.org.tt

Source: Author, April 2019

TEMA is well organised and configured for rapid response, partly achieved using professional CERTs (Community Emergency Response Teams), a programme that trains volunteers in aspects of disaster preparedness and response.

In the immediate aftermath of a disaster, these volunteers are already on scene, rendering assistance, clearing fallen trees, putting out fires, providing first aid, and undertaking light search and rescue. Official responder agencies may be overwhelmed and take some time to get to affected areas, especially if they are remote.

In TEMA’s case, the CERTs are staffers. In Trinidad, there are approximately 1,000 trained CERT volunteers attached to DMUs. There is a very ambitious desire to have at least 10% of the population trained in CERT. There is a common view that each of the DMUs would need an additional two field officers to cope with the onerous responsibilities.

A National Response Framework (NRF) facilitates coordination between state agencies and Non-Governmental Organisations (NGOs) for a range of activities such as early warning, assessment, emergency operations and relief.

Trinidad and Tobago is also part of CDEMA, the Caribbean Disaster Emergency Management Agency, a regional organisation comprising 18 states, with a Comprehensive Disaster Management (CDM) strategy.

The Incident Command System (ICS) used by CDEMA

LOCAL GOVERNMENT

MINISTRIES & AGENCIES

NATIONAL RESPONSE FRAMEWORK CENTRAL GOVERNMENT

PRIVATE SECTOR AND NGOs

Source: Office of Disaster Preparedness & Management (ODPM), www.odpm.gov.tt

Disaster preparedness is a standardised approach to the command, control and coordination of emergency response from multiple agencies across the region.

HISTORICAL IMPACTS Some of the incidents which Trinidad and Tobago has experienced – or narrowly missed – since 1963.

State of preparedness It is common to hear at press briefings that we are well prepared to handle disaster situations, despite the views often expressed by citizens suggesting the opposite. The reason for the divergence could well be a combination of factors: a positive public relations posture, technocratic insider knowledge, different perspectives, and divergent expectations. After-action reviews by the agencies do highlight gaps to be addressed and encourage a process of continual improvement.

Greenvale 2018 The costs associated with the flooding which took place at Greenvale in October 2018 are still being calculated.

Relevant agencies are making steady progress in restoring the community. Some estimates suggest that costs may approach TT$250 million. While yeoman service was rendered by responder agencies, questions have arisen regarding response times, and also about planning and development issues which may have exacerbated the disaster.

The volunteer factor The role of volunteers should not be overlooked. Many NGOs, Faith-based Organisations and Communit ybased Organisations are involved in the various aspects of disaster preparedness and response. Due to size and complexity, no territory would be able to manage a disaster without the involvement of “good Samaritans”.

Radio Emergency Associated Communications Teams (REACT) is an international voluntary organisation, geared toward reliable and resilient communication. Locally, REACT works closely with emergency and disaster management agencies and first responders and is written into the emergency response plans of some businesses in T&T. The Emergency Management Association of T&T (EMATT) is a newly-formed NGO that promotes the strengthening of a disaster risk reduction culture.

Businesses should pay attention to the work of these entities and consider engaging with and supporting their efforts.

Hazards

1963 1974 1988 1990

• • • •

1993 1997 2000 2004 2005 2006 2007 2011 2012 2013 2017 2018

• • • • • • • • • • • •

Hurricane Flora Tropical Storm Alma 6.2 earthquake Tropical Storm Arthur Tropical Storm Fran Tropical Storm Bret 6.1 earthquake Tropical Storm Joyce Hurricane Ivan Hurricane Emily 5.8 earthquake Hurricane Felix Landslides and flooding Landslides and flooding 6.4 earthquake Tropical Storm Bret 6.9 earthquake Flooding

Source: Author, April 2019

may require external recovery services. Given the critical nature of data, a comprehensive policy-driven IT Disaster Recovery Plan (DRP) is essential.

The way forward If a disaster plan is not already in place for you and your business, here are some suggestions.

1.

2.

3.

4.

5.

Business continuity Business continuity planning is the commercial equivalent of public sector disaster preparedness and management. It involves planning for operations during a crisis or disaster by ensuring that essential functioning can continue or quickly resume after the incident. Full resumption as quickly as possible is an objective of the process, and

Year

6.

7.

8.

Establish a steering committee.

Develop a Business Continuity Programme (BCP), internally or by employing consultants, referencing standards such as ISO 22301. Ensure alignment with business strategy, and have stakeholder consultations. Conduct a risk and vulnerability assessment, a business impact analysis, and develop emergency response procedures and disaster recovery plans.

Test and update the plan.

Review and improve infrastructure and policies.

Carefully consider insurance. Ensure it covers the type of damage you may encounter and provides enough coverage to return your business to operation. Guardian Group and Sagicor among others offer comprehensive insurance packages.

Train employees on the BCP and ICS. Review performance indicators and maintain focus.

Engage in community discussions and consider mutual-aid schemes.

chamber.org.tt

JUNE 2019

29

Business profile

Angela Lee Loy: breaking business barriers She has been breaking glass ceilings in the Trinidad and Tobago business world for more than 40 years.

She thinks of companies as extended families.

What drives her? CONTACT asked Angela Lee Loy some direct personal questions by by Pat Ganase Freelance writer

I believe in creating strategic alliances and partnerships, rather than investing in bricks and mortar

Caribbean Resourcing Solutions (CRS) joined us in 2015 with a focus on oil and gas and information technology. It is not difficult to merge firms when your values are the same

To begin with your business role: what is your core business at Aegis?

We offer financial services which can be used by any other company, whether it is an established local company, a multinational, a start-up, or an international company seeking to do business in Trinidad and Tobago. We provide administrative services to help clients become statutorily compliant.

This would range from work permits, payrolls, and tax returns to associated human resource management and accounting services.

I believe in people providing services, creating strategic alliances and partnerships, rather than investing in bricks and mortar. Our people are knowledgeable and adaptable, and can work on or off site. We have two locations, Port of Spain and Chase Village, but technology allows us to work from anywhere. My job as head of the company is quality assurance; I am the common denominator for all our teams.

It was a simple step to link the services of Eve Anderson [Recruitment Limited] to Aegis. We acquired Eve Anderson in 2012, as they cover the spectrum of recruitment and human resource services. Caribbean Resourcing Solutions joined us in 2015 with a focus on oil and gas and information technology. It is not difficult to merge firms when your values are the same.

How do you mentor others?

Mentoring is an important aspect of my job, being a bouncing board for people who come to me with solutions. In October 2018, I was in Hong Kong when I saw reports on the floods in Trinidad, and that the southbound lane of the highway was closed. I thought, how do I mentor my people out in the field? The first thing I did was to check that all my staff were OK. Then, because transportation was disrupted, I told them that they should go into their communities and help. Work could wait. As chairman, I was empowering my staff to help those in need.

When I give a mentoring talk, I don’t have theories: I tell stories about real experiences. I often say, don’t only have relationships with your contemporaries,

30

JUNE 2019

chamber.org.tt

Business profile get to know older people who have so much experience and knowledge to share, and hear their stories. And younger persons, who are creative and innovative in surprising ways. If you lead millennials, you need to understand what stimulates them, how they think.

••

First female President of the Institute of Chartered Accountants of the Caribbean

••

First female President of the Institute of Chartered Accountants of Trinidad & Tobago

••

Former Trinidad and Tobago representative on the International Assembly of ACCA

•• AACA Achievement Award for the Americas, 2008, for outstanding contribution to the accountancy profession and to business and society ••

Founder and executive chairman of Aegis Group of Companies

••

Chairman of Aegis Business Solutions Limited

••

Chairman of Eve Anderson Recruitment Limited

••

Chairman of Caribbean Resourcing Solutions Limited

••

Partner, Aegis & Company

••

Fellow of the Association of Chartered Certified Accountants (UK)

••

Former President of the Trinidad and Tobago Coalition of Services Industries

••

Chairman of the National AIDS Coordinating Committee

••

Chairman of Foundation for Social Justice

••

Chairman of Music Literacy Trust

••

Director of several public and private companies and not-for-profit organisations.

If a person is ill, has problems

What is your goal in business? at home or is worrying about It is that all my employees are secure their children, they cannot and can give 100 per cent. If a person perform fully. My company is is ill, has problems at home or is embedding a new business worrying about their children, they culture where employees feel cannot perform fully. My company supported. is embedding a new business culture where employees feel supported. This is the philosophy that I pass on to my practice leaders and to everyone in my organisation. Hopefully, it will extend to clients and beyond. It is the only way I believe our business culture can change for the better.

COURTESY AEGIS

Angela Lee Loy FCCA CA

What gives you strength?

They say it takes a village to raise a child. My village is my big family, my friends, my husband, my staff. My network becomes an extended family. I am a very contented person. My mother used to say, learn to be content.

I grew up in Barataria but spent long vacations in Mayaro where my godmother had land. She had pigs, fowls and lots of fruit trees. There were seven of us; I was the youngest girl. My father was a health inspector with a route that took him out into the countryside. He knew everybody.

I attended Nelson Street Roman Catholic primary school, but I was not a scholar. I dreaded Common Entrance (now SEA), and shocked myself by passing for St Joseph’s Convent. I was going there with all the bright kids.

Because I knew that I had a lot to learn, I developed habits of diligence and discipline. I took nothing for granted. I learned to be humble. People like to deal with people who are authentic.

I also learned to tap into spirituality. You have to find time to be quiet and get closer to your God. Find time to praise, meditate, and be still for a moment.

That’s a very powerful habit to cultivate.



In 2008 Angela Lee Loy was presented with the ACCA Achievement Award by then ACCA President Richard Aitken-Davies (right) and Sir John Stuttard, former Lord Mayor of London and Vice-Chairman of PwC UK's Advisory Panel

chamber.org.tt

JUNE 2019

31

32

JUNE 2019

chamber.org.tt

COURTESY MUSIC LITERACY TRUST

Business profile



Music Literacy Trust: City Angels "Study in E Minor"

Because I knew that I had a lot to learn I developed habits of diligence and discipline. I took nothing for granted. I learned to be humble. People like to deal with people who are authentic.

What about your role beyond business?

Because I have the people that I do, I am able to get involved in ways that help society. I am very proud of my practice leaders – they have the company’s interest at heart. Mistakes? The biggest ones are those that I’ve made by myself; we can minimise them through consultation and collaboration.

When I became Chairman of the National AIDS Coordinating Committee, I thought, wow, I’d better find out what this is all about. I had to get up to scratch quickly. This was about our society, and its ability to show compassion in a vulnerable sector.

This is how I approach all the not-for-profit boards that I have been invited to sit on. It’s a continuous learning curve that begins with getting all the information and then figuring out how I can help.

In one organisation, we are looking at the resilience of islands affected by extreme disasters like hurricanes. I am also involved with the Music Literacy Trust, which deals with the sustainability of pan musicianship, and the Social Justice Foundation, which has been training children in rural areas in digital videography.

I think I am able to do these things because my companies are ethical, productive and driven: that gives me the freedom to help build other organisations.

chamber.org.tt

JUNE 2019

33

MARCI PARAVIA/SHUTTERSTOCK.COM

34

JUNE 2019

chamber.org.tt

Growth and learning corner

The Chamber's growth and learner corner

What have you read, watched or listened to lately that has contributed to your growth and development as a businessperson?

Reyaz Ahamad President, Trinidad & Tobago Chamber of Industry & Commerce; Executive Director, Southern Sales and Service Company Limited

I have been reading anything I can get my hands on regarding corporate social responsibility (CSR).

Businesses need to play a greater role in improving society by delivering economic, social and environmental benefits for all their stakeholders.

There are many ways in which this can be accomplished locally. Even at a grassroots level, businesses can implement simple initiatives which make a positive impact. Investing in CSR can boost employee engagement and enhance stakeholder relationships, as people want to be associated with an organisation making a difference in the world.

If you make your country, business and community a better place, then it becomes a better place not only to work in but to live in too. This is what we are trying to achieve within our business – improve our social responsibility internally to staff and externally to the communities in which we work.

Kiran Maharaj Managing Director, Caribbean Lifestyle Communications; President, Media Institute of the Caribbean; President, Trinidad & Tobago Publishers & Broadcasters Association

Principles by Ray Dalio is one of the more recent business books that I have read. I think it has a lot of lessons for any businessperson, especially entrepreneurs.

It was recommended by a very good friend who is one of the smartest people I know, so I knew I had to read it. The book is about Ray’s experience from failing to rebuild himself, where he explains how to manoeuvre challenges to get your desired outcome.

The insights are instructive and give guidance for both your personal and professional life. So if you want to have an insider view of a success story and what one person’s road map was, it’s a great book from which to gain that perspective.

Dr Christian Stone Director, 3Stone Research and Consulting

While it’s important to be well read within your field (which is entrepreneurship and strategy for me), I think that reading outside your field is essential to improving creativity and making connections in innovative ways.

Recently I’ve been reading Astrophysics for People in a Hurry, by Neil deGrasse Tyson. Having no formal training in physics, the concepts, especially those that are counter-intuitive, push the boundaries of what I think is possible and help to connect dots that I never imagined existed. As noted in the book, “People who believe they are ignorant of nothing have neither looked for, nor stumbled upon, the boundary between what is known and unknown in the universe.”

chamber.org.tt

JUNE 2019

35

Innovation in business

Meet the Agripreneurs

Harnessing the power of innovation, leading “agripreneurs” – entrepreneurs in agriculture – are using research and development to deliver health benefits and food security to consumers. Stacy Seeterram and Sophia Stone reveal the health benefits of Caribbean Cure teas, and Christian Young Sing explains how he operates a sustainable farming business

by Jeanette G. Awai Freelance writer

By keeping it 100% natural, with no additives or flavourings, Caribbean Cure made its healing loose-leaf teas stand out on the global market

Sometimes, to modernise business, you have to look back at cultural traditions. That’s what Stacy Seeterram and Sophia Stone did with Caribbean Cure’s line of teas. They took Caribbean “bush tea” and turned it into a handcrafted premium product.

By keeping it 100% natural, with no additives or flavourings, Caribbean Cure made its healing loose-leaf teas stand out on the global market. The successful pairing of familiar ingredients like mauby, moringa, ginger and turmeric, with traditional tea ingredients using a special dehydration process, created a custom, nutritive and delicious brew.

Award-winning teas Two years ago, Stone says, “this was just a dream shared in a kitchen”. But their product gained recognition on a global scale when they were awarded two Global Tea Championships. They also received a SIAL Selection in Innovation award in Paris. That accomplishment was particularly exciting for the entrepreneurial duo: they were up against nearly 3,000 international companies which were far bigger and better-known in European circles than their smaller Caribbean product line.

Getting support from the Caribbean Export Development Agency (CEDA), Stone notes, was “exceptionally lucky, and helped expose our products internationally. As two women in agro-processing and export, we have benefitted from CEDA’s WE-Xport programme (supporting Caribbean women in business), and have also worked hard to build our brand locally and

36

JUNE 2019

chamber.org.tt

COURTESY CARIBBEAN CURE

Innovation in business

internationally through partnerships and relationship building. We were also participants in the Shell LiveWIRE programme, among others that have assisted us in getting to the next phase of growth in business.”

Preparing for export



Sophia Stone and Stacy Seeterram, Founders of Caribbean Cure

Creating new blends, new ingredients, and new tea experiences – including a new tea-bag line – are just some of the things we can look forward to from Caribbean Cure

90% of the water is reused in CRISP’s farming, which is a great eco-friendly alternative to traditional growing methods where water is single-use

To make Caribbean tea an international phenomenon, Caribbean Cure had to hold their product to the highest standards. “We have ensured that our packaging, ingredients and processes go a step above by solving the challenge of ‘superfood teas’ which actually contain healing properties and are of exceptionally high quality. We wanted to create a high-end product that uses the very best ingredients and offers consumers a truly premium loose-leaf tea experience that showcases the indigenous gifts that are part of the regional agricultural industry.”

Creating new blends, new ingredients, and new tea experiences – including a new tea-bag line – are just some of the things we can look forward to from Caribbean Cure. Currently, the two entrepreneurs are working on a joint venture in Japan, where they will be manufacturing blends for sale in the Asian markets by late 2019.

Keeping things CRISP For the CEO of Epilimnion Aquaculture Limited, Christian Young Sing, innovation started six years ago, when he decided to take a fresh look at the science of agriculture. His retail brand, CRISP, offers customers three types of locally-grown baby lettuce in its gourmet salad and microgreen mixes – kale, purple cabbage and arugula.

Young Sing uses recirculating hydroponic technology, a growing method that is crop-specific and optimised for each plant’s needs, using LED growlights to attain higher yields. 90% of the water is reused in CRISP’s farming, which is a great eco-friendly alternative to traditional growing methods where water is single-use.

CRISP strives to maintain a high-quality sustainable product down to the compostable “vegware” packaging. But the operation is not without its

chamber.org.tt

JUNE 2019

37

COURTESY EPILIMNION AQUACULTURE

Innovation in business



challenges. Young Sing warns: “If production is not forecast and executed to meet demand, a shortfall will cost you clients, and inversely a surplus will many times result in a glut of wasted produce. This, in part, is why farming is such an unforgiving business.”

However, the company’s science-based approach gives it a competitive edge by growing non-traditional crops suitable for Trinidad and Tobago’s climate.

As a local supplier, CRISP can provide fresher produce with a longer shelf life to both restaurants and caterers, and to supermarket chains and gourmet stores.

Christian Young Sing Founder and CEO of Epilimnion Aquaculture

From idea to innovation

CRISP’s science-based approach gives it a competitive edge by growing non-traditional crops suitable for Trinidad and Tobago’s climate

38

JUNE 2019

A “calculated jump” into entrepreneurship kick-started Young Sing’s entrepreneurial spirit back in 2012, when he won the Idea to Innovation (i2i) competition. The grant he was awarded helped to establish the business, by reinvesting profits generated through focused product selection and client targeting. Moving forward, this model is the benchmark Young Sing wants to continue using.

Ultimately, the goal is to expand the facility into a large-scale commercial operation which can broaden its products from niche-market items to highvolume vegetable crops, using cutting-edge technology to manipulate the growing environment.

The local environment, however, still has some work to do to keep innovators like Young Sing from becoming frustrated with technical hiccups. He recommends that businesses like his can benefit from streamlined applications for permits and incentives; regular online dissemination of up-to-date information; resolving land acquisition issues; and providing tax incentives for farmers. He encourages other entrepreneurs to push forward like a scientist would, by “having a sound framework and realistic thought process to support your business idea. This will help you gain confidence in your product and attain successful outcomes.”

chamber.org.tt

chamber.org.tt

JUNE 2019

39

Five top facts

5 top f ac t s abo u t

The Caricom market

by Sasha Murray Freelance writer

The Caribbean Community (Caricom) consists of 15 member states and five associate members. It claims to be the “oldest surviving integration movement in the developing world”. The main economic activities are fuel and mining (notably oil, gas, bauxite and gold), agriculture, forestry and tourism.

1. How big is the Caricom market?

Caricom is home to about 18 million citizens, 60% of whom are under the age of 30. Haiti (about 11 million) has the largest population, followed by Jamaica and Trinidad and Tobago. Montserrat has the smallest population (about 5,000), followed by Anguilla and the British Virgin Islands

2. Which is the fastest growing economy in Caricom?

According to the Caribbean Development Bank (2018 Caribbean Economic Review and 2019 Outlook), Grenada is the fastest growing economy in Caricom, at 5.2% (2018). It is closely followed by Antigua and Barbuda at 3.5%, and Guyana at 3.4%.

Grenada also has a positive medium-term outlook, with the CDB projecting 4.5% economic growth in 2019.

3. Which Caricom state topped the world for conventional oil discoveries in 2018?

Top 10 countries by conventional discovered volumes in 2018 Million boe

2071

2000 On land Offshore 1500

1336

1000 746

672

671 498

500

350

305

203

194

n

lay sia Ma

om

Ga bo

Kin gd

Un ite d

ay No rw

Au str alia

Om an

tat es

Cyp rus

dS

na

Un ite

Ru

Gu ya

ssia

0

ExxonMobil has made 13 discoveries (at the time of writing) in Guyana, and will begin producing up to 120,000 barrels of oil per day from the Liza Phase 1 development in early 2020. There is potential for at least five floating production, storage and offloading vessels in the Stabroek Block, producing more than 750,000 barrels of oil per day by 2025. Growth projections for 2020 and 2021 are 29.8% and 22.1%.

4. Who is the biggest trader in goods in Caricom?

Source: Rystad Energy ECube, December 2018

In 2016 Trinidad and Tobago’s exports to Caricom were worth US$734 million. They represented 32% of Caricom’s intra-regional exports and 10% of T&T’s global exports. Trade in services also forms a significant part of Trinidad and Tobago’s trade with the region.

5. How developed is agricultural trade between Caricom members?

Agricultural imports from other member states are only 16.6% of Caricom’s total global agro-imports. Intra-Caricom trade in agriculture is moderately diversified. Trinidad and Tobago and St Vincent & the Grenadines are the top exporters of agri-food products within Caricom, while Jamaica and T&T are the top destination markets. Trinidad and Tobago was the largest source of Jamaica’s agro-imports (55%), while Guyana was the largest source of Trinidad and Tobago’s (36%).

chamber.org.tt

JUNE 2019

41

42

JUNE 2019

chamber.org.tt

Economic outlook

Economic outlook Latin America and the Caribbean Economic activity in Latin America continues to increase, but at a slower rate than anticipated. The weakening global economy and rising policy uncertainty are contributing to the slowdown in Latin America’s growth momentum. Overall, the region is still expected to advance by 2% in 2019 and 2.5% in 2020 (see Table 1).

A tightening of global financial conTable 1: Real GDP growth projections for Latin America and the Caribbean (%) ditions and lower commodity prices Projections brought on by United States-China 2017 Est. 2018 2019 2020 trade tensions is continuing to con1.3 1.1 2.0 2.5 Latin America and the Caribbean tribute to the region’s slowdown. In Excluding Venzuela 1.9 1.7 2.3 2.7 addition, monetary policy was tight0.8 0.4 1.8 2.4 South America ened in some economies to contain Excluding Venezuela 1.7 1.3 2.2 2.7 inflationary pressures stemming partly from currency depreciation, which Central America, Panama 4.0 3.7 3.8 4.0 and the Dominican Republic further dampened growth.

Caribbean As the global economy slows, the narrow window of opportunity to Tourism dependent 1.1 1.4 1.8 2.4 complete regional reforms is closing.

Commodity exporters -1.3 1.5 1.6 5.5 The creation of debt and deficit Latin America reduction mechanisms will need to Argentina 2.9 -2.8 -1.7 2.7 continue in several countries to ensure Brazil 1.1 1.3 2.5 2.2 debt sustainability and minimise the Chile 1.5 4.0 3.4 3.3 adverse effects on economic activity Colombia 1.8 2.6 3.3 3.6 and poverty. These developments Mexico 2.1 2.1 2.1 2.2 should include the protection of infraPeru 2.5 3.8 3.8 4.1 structure for regional investment and Source: Latin America and the Caribbean in 2019: A Moderate Expansion, Werner, Alejandro, IMF Blog, 25 Jan. 2019 well-targeted social expenditure, while cutting non-priority spending.

Economic activity in the Caribbean is still projected to pick up in 2019-20, due to robust tourism from the US, reconstruction from the devastating hurricanes of 2017 in some tourism-dependent countries, and higher commodity production in some commodity exporters (see Figure 1).

Figure 1: Real GDP growth, year-over-year (% changes) 4 World

3

2

1 Latin America and the Caribbean

0

-1

2015

2016

2017

2018

2019

Source: IMF, World Economic Outlook database.

2020

EU blacklists Caribbean countries

Economic activity in the Caribbean is still projected to pick up in 2019-20, due to robust tourism from the US, reconstruction from the devastating hurricanes of 2017 in some tourism-dependent countries, and higher commodity production in some commodity exporters

In December 2017, the European Union (EU) published its first blacklist of tax havens, in an attempt to foster good global tax governance. It contained 17 countries; updated in March 2019, it now contains 15 countries. EU member states accumulated over 12.5 trillion in government debt, or 82% of the EU’s GDP, whilst EU-blacklisted countries on average carry government debt at 61.3% of GDP – 20% lower than the projected EU average, despite the EU having higher than average corporate tax rates.

The list includes Aruba, Barbados, Belize, Bermuda, and Dominica. They join Trinidad and Tobago and the US Virgin Islands, which were already on the blacklist. “The blacklist of tax havens has proven a true success, with many

chamber.org.tt

JUNE 2019

43

44

JUNE 2019

chamber.org.tt

Economic outlook countries having changed their laws and tax systems to comply with international standards,” the EU said. Over the course of 2018, the commission assessed 92 countries based on three criteria: tax transparency, good governance, and real economic activity, as well as one indicator, the existence of a zero corporate tax rate.

trade talks with China; if the deal is finalised, a summit will be hosted with China’s President, Xi Jinping. Failure to achieve a deal may see the US more than double the 10% tariffs on US$200bn (£153bn) of Chinese goods and impose fresh tariffs.

The domestic landscape

According to FDI Intelligence, countries of the AsiaPacific region are the leading destination for greenfield FDI (where a parent company builds its operations in a foreign country) in renewable energy, while the US is the top country, Dubai the top city, and Germany the top source of investment.

Business lines dedicated to the development of energy production from renewable sources, such as Enel Green Power (Enel Group) and Canadian Solar, were the most active investors with 27 FDI projects each, followed by Canada’s SkyPower and Spain’s Acciona Energy.

“Local businesses will continue to benefit from the dutyfree export of goods and the preferential treatment of services exports to the United Kingdom,” said Trinidad and Tobago’s Minister of Trade and Industry, Senator Paula Gopee-Scoon, as she announced her country’s decision to sign the Economic Partnership Agreement between CARIFORUM and the United Kingdom (CARIFORUM-UK EPA).

Global outlook Global manufacturing activity and trade showed continued signs of weakness at the start of 2019; in contrast, activity in the services sector has been resilient. Some emerging markets and developing economies are currently facing negative conditions that are hindering growth, while others are benefiting from the easing of some external financing conditions.

United States Companies within the US added 196,000 jobs in March 2019, marking a significant rebound from poor growth in February. Earnings data showed that the annual rate of wage increases slowed to 3.2% in March. The healthcare sector saw jobs rise, but the retail and manufacturing sectors both saw declines.

Even though the US experienced employment growth, it can be seen as a mixed report since 6,000 jobs were lost in manufacturing, the first decline in the sector since July 2017.

Table 2: Employment in the United States, 2019 Jobs created

Wage change

February

33,000

3.4%

March

196,000

3.2%

US–China trade update The US accused China of stealing intellectual property from American firms by transferring American technology to China. Washington wants Beijing to make changes to its economic policies, which it says unfairly favour domestic companies through subsidies and other support mechanisms. It also wants China to buy more US goods to rein in a lofty trade deficit.

In April, US President Donald Trump said the US had achieved agreement on some of the toughest points in

Rest of the world - FDI

Additional reference “Latin America and the Caribbean in 2019: A Moderate Expansion.” Werner, Alejandro, IMF Blog, 25 Jan. 2019. blogs.imf.org/2019/01/25/latin-americaand-the-caribbean-in-2019-a-moderate-expansion/ Dukharan, Marla. “Marla Dukharan Caribbean Economist: March 2019.”

Marla Dukharan and GNM Group LLC, Mar. 2019. marladukharan.com/wpcontent/uploads/2019/03/2019-03-Caribbean-Monthly-Report-MD.pdf.

“T&T to Sign Trade Agreement with the United Kingdom.” Trinidad and Tobago Government News, 2019. www.news.gov.tt/content/tt-sign-tradeagreement-united-kingdom#.XKX1ThH_rIU. “Global Monthly.” World Bank, Microeconomics, Trade and Investment, Mar. 2019. pubdocs.worldbank.org/en/482391553867433998/Global-MonthlyMar19.pdf.

“US Jobs Rebound but Wage Growth Slows.” BBC News, 5 Apr. 2019. www. bbc.com/news/business-47822492.

“Fair Taxation: EU Updates List of Non-Cooperative Tax Jurisdictions.”

European Commission press release, 12 Mar. 2019. europa.eu/rapid/pressrelease_IP-19-1606_en.htm.

“US and China Edge Closer to 'Epic' Trade Deal, Says Trump.” BBC News, 5 Apr. 2019. www.bbc.com/news/business-47729803.

Intelligence, FDi. “FDI Renewable Energy Investments of the Year 2019 – the Winners.” Rankings – FDiIntelligence.com, 11 Feb. 2019. www.fdiintelligence. com/Rankings/fDi-Renewable-Energy-Investments-of-the-Year-2019-thewinners.

Guarascio, Francesco. “EU Adds UAE, Bermuda to Expanded Tax Haven Blacklist.” Reuters, Thomson Reuters, 12 Mar. 2019. www.reuters.com/ article/us-eu-tax-blacklist/eu-adds-uae-bermuda-to-expanded-tax-havenblacklist-idUSKBN1QT1Q9.

chamber.org.tt

JUNE 2019

45

Energy update

Energy update Local crude oil and natural gas production and usage ➤ Figure 1 shows that apart from the ownership of the companies, the top three oil producers have remained unchanged from Q4 2017 to Q4 2018. It is important to note that during Q4 of 2018, the domestic oil refinery was closed, leading to oil imports being halted for that time period; this is shown in Figure 2.

Fig. 1: Top oil producers (avg. bopd) 20,203

Q4 2017

Trinmar

14,810 11,730

11,313

Petrotrin

Perenco

Q4 HPCL (offshore) 2018

10,094

9,789

HPCL (land)

Perenco

Fig. 2: Imports vs exports of crude oil (barrels) N/A

8,741,537

1,521,230

2,260,986

Q4

Q4

2018

2017

Imports ➤ As can be seen in Figure 1, when comparing Q4 data from 2017 and 2018, between the top three producers there was an average decline in oil production of approximately 20%. Over the same time period there was a modest increase in natural gas output of approximately 1.83% (Figure 4). Figure 3 also shows that the LNG sector continues to be the major user of natural gas locally, accounting for almost 57% of total production.

Imports

Exports

Fig. 3: Natural gas utilisation by sector Q4 2018 (avg. mmscf/d)

Fig. 4: Top local natural gas producers Q4 (avg. mmscf/d)

LNG 1,865 Ammonia 553 Methanol 499 3,299

2,115

Q4 2017

Other 98

BPTT

517

423

EOG

BHP

680

429

Shell

EOG

2,002

Power 241 Refinery 43

Exports

Q4 2018

BPTT

Source: MEEI Consolidated Report 2017 & 2018

46

June 2019

chamber.org.tt

Energy update

A comparison of Q4 2017 and Q4 2018 production and export levels for energy and downstream products Natural gas production (mmscf/d) 5 5 4 Thousands

➤ A comparison between Q4 2017 and Q4 2018 shows that monthly natural gas production levels improved for the month of October; following which they maintained slightly decreased levels for the remainder of the quarter

Crude oil condensate production (bopd) 70 60

4 3 3 2

0

50 40 30 20 10

October

November

December

0

October

November

December

Thousands

250 200 150 100 50 0

October

November

December

Methanol exports (mega tonnes) 600 500

400 Thousands

December

400 350 300

500

400 300 300 200

200

100 0

100

October

November

December

0

October

70

90

60

80

December

70

50

60

40

50

30

40 30

20

20

10 0

November

Urea exports (mega tonnes)

Urea production (mega tonnes)

Thousands

November

500 450

Methanol production (mega tonnes)

➤ Urea production was halted from 28 September 2018 to 14 November 2018 in order to conduct a plant turnaround (i.e. planned maintenance).

October

Ammonia exports (mega tonnes)

Ammonia production (mega tonnes) 460 450 440 430 420 410 400 390 380 370 360 350 340

Q4 2018

80

2 1 1

➤ With the exception of methanol, downstream products on average show decreases in production levels in Q3 2018

Q4 2017

10

October

November

December

0

October

November

December

Source: MEEI Consolidated Report 2017 & 2018

chamber.org.tt

June 2019

47

The Chamber and its Members

Welcome, new members!

The Chamber extends a warm welcome to companies and individuals who have become members in recent months Ian Davis 688-1912 keycontractorsltd@gmail.com

Allan Clovis 688-1884 allanclovis1@gmail.com

John Charles 794-5281 johncharles.ttjec@gmail.com

Avion Hercules 787-0302 avionh@gmail.com

Ken Jones 639-5511 ken.jones@jonesmotorstt.com

Bertil Taylor 686-7957 info@alibaba-tours.com

Keron Cowan 682-6236 keronc@hotmail.com

Brendon Gray 660-7483 anthony.b.gray@gmail.com

Michael Wheeler 631-7246 wheelersprinklers@gmail.com

Claude Taylor 684-5547 claudgrey@gmail.com

Petronella Hazzard 799-0661 petronellahaz@gmail.com

Darrel De Coteau 787-0476 darreldec@gmail.com

Phillip Charles 290-9064 pcelectric@live.com

Derek De Gannes 639-3077 derek.degannes@gafarrell.com

Premium Cigars Limited 683-3022 support@premiumcigarstt.com

Estuary PR Limited The Bass House, 11 Warren Street, Woodbrook 367-5295 liza@estuaryPR.com

Rose Ramdehol Auto Sales Limited 115 Woodford Street, Newtown, Port of Spain 392-1315 herotrinidadandtobago@gmail.com

48

JUNE 2019

chamber.org.tt

ASSOCIATE MEMBERS Andrew Bisnath andrewbisnath@hotmail.com Sian Cuffy-Young sian.young@sielenvironmental.com Sparkle Charles spaklinggoldchocolates@gmail.com Stacy Seeterram stacy.harricharan@gmail.com

COURTESY SIMONE ANDREWS

3 Stone Research & Consulting Limited 770-4500 christian@3stone.com

chamber.org.tt chamber.org.tt/CONTACT-MAGAZINE

March 2019

49

F RO M T H E H O U S E O F A N G O S T U R A

by t

he wo rl

es d’s b

t

2019 ed

by t

h e wo r l d’s

rs

ot

v

v

ed

TEN trending RU M

as

2019

as

ot

top

UM

ba

ST S E L L I N GR en BE

rs

pt

ba

to

b es

t