08292018 BUSINESS

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WEDNESDAY, AUGUST 29, 2018

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‘No fiscal cataclysm’ over Grand Lucayan

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE $65m Grand Lucayan deal “is not a cataclysmic event” for the Government’s finances, a cabinet minister argued yesterday, insisting: “We think we’ve hit a home run.”

Dionisio D’Aguilar, minister of tourism and aviation, told Tribune Business that the purchase price paled into insignificance when compared to the $2.636bn recurrent spending budgeted by the Minnis administration for the 20182019 fiscal year.

Defending the

* Minister: ‘We think we’ll hit home run’ * Initial payment just $5m above plan * Hutchison threatened close from election Government’s hotel acquisition from critics he described as “armchair quarterbacks”, Mr D’Aguilar said it was only paying $30m of the purchase price this fiscal year - a sum that was just $5m greater than what it had originally allocated to support the failed Wynn Group purchase.

The Minister admitted the Government is “taking a risk” through its intervention, and “history will judge” whether it “hits a home run” - as it believes - or “strikes

DIONISIO D’AGUILAR

THE GRAND Lucayan property in Freeport. out” as critics such as Fred Smith, the Freeport-based QC, anticipate.

Comparing the Grand

Lucayan situation to a baseball game, Mr D’Aguilar said the Government could ill-afford “to sit in the

dug-out and do nothing” as current owner, Hutchison Whampoa, closed the property and the majority of

Freeport’s stopover tourism industry.

SEE PAGE 4

Bahamas just 17% ready for disasters Aliv: We’re gaining what BTC’s losing

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Bahamas is just 17 percent prepared to cope with major disasters, an Inter-American Development Bank (IDB) report highlighting its “low progress” despite exposure to hurricanes.

The multilateral lender, using its iGOPP governance and public policy index to measure The

Bahamas’ readiness, rated this nation as weak in virtually all aspects of disaster preparation, management and response.

Its assessment, conducted last year, found this nation had made “very limited progress” in disaster recovery planning and needed extra financial protection to reduce “its fiscal vulnerability against the occurrence of disasters”.

The Bahamas received

Govt planning quarterly fiscal reporting move

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government will move to quarterly budget reporting before year-end to match the Fiscal Responsibility Bill’s “ethos” and better inform Bahamians about the fate “of their tax dollars”.

Marlon Johnson, the Ministry of Finance’s acting financial secretary, told Tribune Business that the enhanced reporting - which will provide taxpayers with four updates per year - was

MARLON JOHNSON intended to fulfill the Government’s commitment to greater fiscal accountability and transparency.

“The deputy prime minister [KP Turnquest] has

SEE PAGE 5

Poultry producer’s 40% sales decline the ‘worst in years’

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net AN Abaco-based poultry producer said yesterday that August could be its “worst month in years” with sales down 40 percent compared to July’s figures.

Lance Pinder, Abaco Big Bird Poultry Farm’s operations manager, told Tribune Business that while August sales have typically been sluggish due to the seasonal nature of the island’s second home/ tourist market “it’s never been this bad”.

“Everything is quieting down now as the tourist season comes to an end here,” he explained. “I

would say it’s been an average year for us. Our sales so far this August have been horrendous. I don’t know really what it is, but our August sales are down 40 percent compared to last month and it looks like it’s going to be by far the worst month we’ve had in years.

“We still have a week left, and I could get a big order right before the end of the month. Things always slow down in August and September because some of the restaurants close down, but it’s never been this bad.”

Mr Pinder added that Abaco Big Bird has been affected by several external

SEE PAGE 5

12 percent and 13 percent scores in these two areas, respectively, and earned just six percent for “risk identification and knowledge”. It fared slightly better with 15 percent for its disaster risk management governance framework, and performed best on “risk reduction” and “disaster preparedness” with 22 percent and 37 percent, respectively.

SEE PAGE 6

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ALIV’S top executive yesterday said it has seized one-third of the Bahamian mobile market by gaining the business its rival is losing, as it switches focus to its “innovation agenda”.

Damian Blackburn, pictured, told Tribune Business that the mobile upstart currently has around 120,000

customers as it continues to make inroads into the former long-standing monopoly held by the Bahamas Telecommunications

Company (BTC).

BTC’s subscriber base, as unveiled by its ultimate parent, Liberty Latin America (LiLAC), stood at just below 241,000 at endJune 2018, down almost 24 percent from the 315,000strong base it enjoyed when Aliv launched commercial services in November 2016.

This suggests that around one in four subscribers

SEE PAGE 5

PAGE 2, Wednesday, August 29, 2018

THE TRIBUNE

MINISTERS LEAD VISIT OVER CRUISE TRAINING TWO Cabinet ministers led a government delegation that visited Carnival Cruise Lines’ training centre in the Netherlands on a three-day trip.

Dion A. Foulkes, minister of labour, and Renward Wells, minister of transport and local government, were shown the company’s Centre for Simulator Maritime Training (CSMART) facilities in Almere.

The 10-member delegation was briefed by Carnival executives on the organisational structure, history and future plans for the conglomerate’s nine cruise line brands.

These include Carnival Cruise Line, Princess Cruises, Holland America Line, Costa Cruises, P&O Cruises and Aida Cruises.

Carnival has a combined fleet of more than 100 vessels and 120,000 employees. The Government delegation toured CSMART, and observed and participated in maritime training simulation exercises, as part of efforts to

RENWARD Wells, minister of transport and local government, piloted a simulated cruise ship. Observing were (front row) Dr Brendamae Cleare, director of LJMMA; Mr Foulkes; Denise Lewis Johnson, BMA chairperson; Peter Goulandris, BMA deputy chair; Captain Dwain Hutchinson, BMA acting director; Dr Ian Strachan, UB vice-president. Back row: Marisa Mason-Smith, NSTC cochair; Jewel Edwards, NTA executive chairperson; and Archilene O’Brien, BTVI dean. increase Bahamian employment in the cruise industry.

Mr Foulkes said: “The

Government is committed to maximising employment of Bahamians aboard Carnival’s

L to R: Stefano Borzone, Carnival Corporation senior vice-president; Hans Hederstrom, CSMART managing director; Archilene O’Brien, BTVI; Captain Dwain Hutchinson, BMA; Mr Wells; Mr Foulkes; Marie McKenzie, Carnival vice-president; Giora Israel, Carnival senior vice-president; Dr Brendamae Cleare, LJMMA; Denise Lewis Johnson, BMA; Dr Ian Strachan, UB; Marisa Mason Smith, NSTC; Jewel Edwards, NTA; Peter Goulandris, BMA; and Captain Karl Austin

cruise ships. A joint commitAlso included in the del- Bahamas (UB), Bahamas tee was established several egation were representatives Technical and Vocational months ago to formulate from the Bahamas Mari- Institute (BTVI), LJM Marian employment agreement time Authority (BMA), time Academy (LJMMA) and to begin recruitment of National Training Agency and the National Skills and Bahamians.”

(NTA), University of the Training Committee (NSTC).

BAHAMAS TAKES ITS PLACE FOR MAJOR US CONVENTION THE Bahamas will again be one of the featured booths at the annual Allstate Tom Joyner Family Reunion (ATJFR), scheduled to take place this US Labor Day weekend in Florida.

The Ministry of Tourism and Aviation will be based in booth 808 as part of what is being described as “The Supersize Family Expo”. The event, which is now in its 16th year as a major African-American Convention and Expo, is said to attract more than 50,000 family members of all ages each year.

The Bahamas was part of the 2016 ATJFR and, at this year’s event, will be joined in its booth by Bahamas Paradise Cruise Line

from Palm Beach Florida.

The cruise line features two daily cruises to Freeport out of the Port of Palm Beach.

The Expo will feature some 150 booths with a number of zones, including a College and Community zone; a Kids and Teen zone; an Art and Culture zone; an Entertainment zone; a

Retail zone and many others. The convention is a registered event, but the Expo section will be free to the public.

The Allstate Family Expo will be opened to the public daily: Friday: 8 am to 7 pm Saturday: 9 am to 7 pm Sunday: Noon to 6 pm

THE TRIBUNE

Wednesday, August 29, 2018, PAGE 3

MINISTER CLARIFIES $2.5M ARAGONITE FEE ESTIMATE A CABINET minister yesterday clarified that the Government could earn $2.5m annually from a single aragonite mining licence, with that figure not representative of its true value to The Bahamas.

Romauld Ferreira, minister of the environment and housing, said: “It is the collection of licence fees where the Government makes its money from aragonite. The Government is not in the business of mining aragonite to either primary, secondary or tertiary grade processing. It is simply collecting fees from people that do.

“The potential for that, a study conducted by ourselves, our technical team and a technical team from the Commonwealth Secretariat said, is that we could make approximately $2.5m per licence.

he explained. “In The Bahamas there are vast quantities of aragonite. They are scattered throughout the country, essentially in pits in the seabed.

“The study looked at about a dozen sites to determine the amount of aragonite and how fast the aragonite is precipitating. Aragonite is a form of calcium carbonate that precipitates out of the ocean.

Those studies determined that the quantities are vast, but different locations throughout The Bahamas have different precipitation rates or rates of formation.

Those rates vary between

ROMAULD FERREIRA

“That doesn’t not mean that the resource of aragonite is only worth $2.5m.

It means that if you are a potential licensee in a

differentiated class licensee system, you would pay approximately that amount.”

Mr Ferreira said studies had shown there were vast

quantities of aragonite in The Bahamas. “The geological reports determine the quantity of aragonite available in The Bahamas,”

Retailers aim to match US prices ‘as close as possible’ BAHAMIAN retailers are aiming to get “as close to US prices as possible” to encourage more local consumer spending and benefit the economy “tremendously”.

Tara Morley-Nolan, the Bahamas Federation of Retailers (BFR) co-chair, told Tribune Business yesterday that the industry was taking advantage of the 25 percent customs duty elimination on shoe and clothing imports, although it was still “too early” for any noticeable impact on sales.

“I don’t know if people are noticing a difference yet because it’s probably going to take a while for people to replenish their

floors,” she said. “They wouldn’t have brought in enough merchandise for a significant portion of their merchandise to be reduced yet.

“Everyone I know has been proactive in applying for the exemption. I’m now just sort of getting details on where there are hiccups clearing shipments and that sort of thing, so I think there are still some growing pains. I think that’s because it’s a new programme and, after a few months, that should become easier.”

Mrs MorleyNolan added: “I think people are just excited to have lower prices and to finally be able to compete with the US market.

Customers ask how come this or that item is more expensive than the US. “When we are finally able to say it’s the exact same price as the US, then those customers that walk back out of the store will actually want to shop with us. The goal is to try and get as close to US prices as possible.”

She acknowledged that there are other issues affecting retailers’ competitiveness. “Obviously there are some other issues such as living on an island with the cost of shipping, which is impacted by duties, and the cost of doing business here in general,” said Mrs Morley-Nolan, noting that the BFR represents

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150 years and 2,000 years for one of these grains to form.”

Responding to criticisms as to why the Government has appeared slow in seeking to capitalise on natural resources, Mr Ferreira stressed that government policy must be informed by science.

“Before you can ever hope to exploit a resource, you must first understand it. You must understand where the deposits are and how long they took to get there. Before you launch into widespread commercial exploitation you must understand the nature of the resource,” he said.

over 100 retailers.

“I think the more you are able to encourage more reasonably priced consumer spending at home, rather than people trying to smuggle everything in their suitcase, the better it is for the economy. The economy would benefit tremendously. The Government would receive more tax dollars when people shop at home rather than abroad,” said Mrs Nolan.

The Government made a provision in the 2018-2019 budget to “waive” import duties for retailers and importers of clothing and shoes in a bid to improve the sector’s competitiveness against online and foreign rivals.

NOTICE TO SHAREHOLDERS Notice is hereby given in accordance with Section 99(1)(a) of the Securities Industry Act, 2011 that Mr. Kenrick L. Brathwaite, Sr. has been appointed as Managing Director by the Board of Directors of Bank of The Bahamas Limited with effect from 3rd September, 2018, subject to the approval of The Central Bank of The Bahamas.

Laura A. Williams Corporate Secretary

PAGE 4, Wednesday, August 29, 2018

THE TRIBUNE

‘No fiscal cataclysm’ over Grand Lucayan

FROM PAGE ONE He pointed to the nearby Royal Oasis as an example of shuttered resort properties that had proven impossible to re-open, and described the Grand Lucayan as “a rounding error already written off” by the Hong Kong-based conglomerate.

Mr D’Aguilar revealed that Cheung Kong (CK) Property Holdings, Hutchison Whampoa’s real estate arm, had been threatening to close the resort since the May 2017 general election, and it was only the Minnis administration’s intervention then that kept the Grand Lucayan open “for as long as it has been”.

With CK Property Holdings’ patience wearing thin as the Hurricane Matthew insurance payments ran out, and Wynn withdrawing from the purchase, he argued that the Government was faced with “an emergency situation” that left it no alternative but to act.

Mr D’Aguilar also confirmed to Tribune Business that appointing a brand operator/management company to run the Grand Lucayan was the Government’s “second choice”, and would likely only be considered if a quick sale was not achieved.

He added that the Minnis administration was not keen on adding an extra layer of cost, and to become a

landlord, given that such a scenario would likely incur increasing losses for Bahamian taxpayers.

Mr Smith and others have blasted the Government’s Grand Lucayan purchase as “economic suicide”, and a move that will “plague” Bahamian taxpayers and the Public Treasury for years to come, but Mr D’Aguilar countered that its economic importance to Freeport meant it could not be allowed “to wither and die”.

“Look, the analogy I like to draw is the game of baseball,” he told Tribune Business. “We could sit in the dug out and do nothing, and let it take the course it was going to take. Hutchison

Whampoa was going to close the hotel, and history shows when you allow a hotel to close it’s a lot more difficult to get it open again.

“We decided to go up to the plate and swing the bat. We could hit a home run, which we think we’re going to do, or strike out, which Mr Smith thinks could happen. History will tell us who was right.

“We feel it was worth the risk; that we had to do something. We had to step up to the plate, we had to swing the bat. We can’t let the hotel wither and die without making some effort.”

The Grand Lucayan deal is structured such that the Government has paid a $10m deposit upfront, with a further $20m due to Hutchison Whampoa upon closing and conveyance of the real estate. The $35m balance is to be paid off in a series of seven bi-annual $5m instalments spread over the next three-and-a-half years.

As a result, Mr D’Aguilar said the acquisition costs would impose no undue strain on the Government’s 2018-2019 budget - especially since some $25m had already been allocated to finance an equity stake in the aborted Wynn deal, and for marketing and airlift support.

“There’s time to pay for it. In this current fiscal year we’re spending only $5m more than budgeted,” Mr D’Aguilar told Tribune Business. “It’s not like in a $2.6bn budget this is going to be the cataclysmic event that causes a change in our economy.

“It’s about leadership.

We have to take the risk. If all decisions were easy we’d make an easy decision, but life is about risk. We have to take the risk. Our risk is going to try and make this work.

“We could sit in the dug out and do nothing, but that is not what we were elected to do. The Government was elected to take that risk, get up to the plate and swing the bat. We may not hit a home run every time, but we’ve got to try. Many people are going to armchair quarterback this decision, but it behooves the Government to step in,” he continued.

“Tourism is a large employer. It’s the most efficient way of putting money in the hands of the people. The fact we’re such a tourism-dependent nation behooves us to act.”

Hutchison Whampoa was sticking rigidly to its $65m price - a level that was unlikely to attract private buyers, given the likely

$100m-plus investment required to repair, renovate and re-open all the Grand Lucayan, plus rebuild airlift and promotional activities.

Taking the Hong Kong conglomerate out of the equation means there will be more flexibility on purchase price. And, with $25m already allocated in the 2018-2018 budget, the Government could “break even” on the acquisition if it were to obtain a price of around $40m - the figure at which Wynn sought a renegotiated deal.

Mr D’Aguilar argued that the Grand Lucayan was a relatively insignificant part of Hutchison Whampoa’s empire far from Hong Kong, which meant that it did not merit the attention required

by Freeport’s economy and tourism product.

“We’re a motivated seller and this hotel is a rounding error to Hutchison Whampoa,” he told Tribune Business. “They don’t care. This is an asset they’ve clearly written off already. They’re not interested in doing anything with it as they’ve sucked all the insurance money [from Hurricane Matthew] out.

They’ve checked out.

“Hutchison have been trying to sell this property since 2016 and have had no luck. One can argue they’re not a motivated seller, as they were not moving very quickly. In almost two years they’ve had no purchaser and have not sealed a deal.

“They are in a completely different timezone, and it’s such a tiny, tiny portion of their empire. They don’t feel the sense of urgency we feel to make something happen. The Government is trying to be a bit more nimble and get results faster.

Time will tell.”

Tribune Business revealed last month that Hutchison/ CK Property Holdings was set to close the Grand Lucayan’s last remaining property, the 196-room Lighthouse Pointe, next month after the last insurance payment from Hurricane Matthew was received.

Mr D’Aguilar, though, revealed that the prospect of closure had loomed long before. “They were threatening to close the hotel from May 2017,” he disclosed. “It was thanks to the intervention of this government that we were able to keep it open as long as we did.

“I know from the time we came to office they’ve been threatening to close that hotel. The intervention of the prime minister is what saved it, but I guess we reached the

COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT Common Law and Equity Division

end of that course.”

Mr D’Aguilar said his “gut” instinct told him the Grand Lucayan would attract interested buyers.

However, any purchaser will not be taking on just a hotel but the task of rebuilding an entire city’s/island’s tourism product, turning it into a destination that does not compete head on with Nassau/Paradise Island, Florida or other regional rivals.

This likely means the Government must seek out visionaries such as Sol Kerzner (Atlantis) and Sarkis Izmirlian (Baha Mar), with both the financial backing and imagination to take a risk in reviving an island that has lost 59 percent of its room inventory since Hurricane Matthew.

“The primary goal is to sell the property,” Mr D’Aguilar reiterated. “The Government should not be in the business of running a hotel.

This is an emergency situation where we had to step in, but we fundamentally believe the Government of The Bahamas should be in this business.”

He added that Dr Hubert Minnis, as a former Hotel Corporation chairman, was all too aware of the perils and multi-million dollar financial bleeding that hotel ownership can impose.

“We’d obviously like a quick sale but a sale to the right buyer,” Mr D’Aguilar said.

“We want someone in there who’s passionate about Grand Bahama, and really wants to transform that hotel and give it the level of attention and passion given to Baha Mar and Atlantis.

We need someone with that level of attention, that level of love for Grand Bahama who really wants to make it work. We’re anxious to sell it onward to the right buyer.”

Mr D’Aguilar described a rapid sale as the Government’s “choice number one”, with the hiring of a brand operator/management company acting as a fallback option if that was not achieved.

“The Government would prefer not to be in a position where it is the lessor,” he explained. “We would prefer not to be in the landlord position, as landlords have certain obligations to maintain the property and absorb losses because the tenant manages the property.

“The tenant takes their fee as a percentage off the top, and the losses are absorbed by the owner. We would prefer not to be in that situation. That’s not an ideal outcome.”

2018/CLE/gen/00831

IN THE MATTER of THE ST. JAMES BANK & TRUST COMPANY LTD. AND IN THE MATTER OF the Companies Act, 1992 ____________________ NOTICE ____________________ TAKE NOTICE that a Petition was on the 27th August A.D., 2018 presented to the Supreme Court of the Commonwealth of The Bahamas for the confirmation of the reduction of capital of the above-named Company and that such reduction of share capital be effected by returning paid up share capital to the shareholders of record, AND NOTICE IS FURTHER GIVEN that the said Petition is directed to be heard before Madam Justice Renae McKay, in the Supreme Court, Judicial Complex, Bank Lane, Nassau on Friday the 14th day of September, A.D. 2018 at 9:00 o’clock in the forenoon.

Any creditor or shareholder of the said company desiring to oppose the making of an Order for confirmation of the said reduction of capital should appear at this time in person or by Counsel for that purpose.

A copy of the said Petition will be furnished to any such person requiring the same by the undermentioned Attorneys upon payment of the charge for the same.

Dated this 28th day of August A.D., 2018.

Graham Thompson Chambers Sassoon House Shirley Street & Victoria Avenue Nassau, Bahamas Attorneys for the Petitioner

THE TRIBUNE

Aliv: We’re gaining what BTC’s losing FROM PAGE ONE

has migrated from BTC to Aliv since then, a calculation that Mr Blackburn made no attempt to dispel.

“We’re at, give or take, 120,000 customers on the same basis [as BTC],” he said, “so we know we’re at 33 percent market share overall and marching forward in all segments of the market.

“All the revenues BTC is losing, we’re seeing them pick up on Aliv. The planning’s working. People are transferring their spend to us. All the revenues they are losing we’re seeing come over to us.”

Balan Nair, LiLAC’s chief executive, told analysts recently that BTC’s owner was pinning its hopes on a new management team, headed

by Jamaican Garry Sinclair, to reverse the continual top-line revenue decline seen since Aliv entered the market.

Such competitive pressures resulted in a 14.8 percent year-over-year

drop in BTC’s total 2017 revenues, which fell from $306.6m in 2016 to $261.3m last year. The latter figure is almost $100m down on the revenues BTC enjoyed pre-mobile liberalisation, highlighting just why Mr Nair is so eager to reverse the company’s plummeting top-line.

BTC lost a further 10,400 mobile subscribers during the three months to endJune 2018, although this was said to represent a near-60 percent decline on the attrition experienced during the same period in 2017.

The incumbent carrier lost some 24,000 mobile customers during the 2017 second quarter, and its latest figures indicate that Aliv continues to steal market share and business following its aggressive market entry in November 2016.

A breakdown provided

by LiLAC shows BTC lost 10,000 pre-paid, and 4,000 post-paid, subscribers during the 2018 second quarter. This leaves the carrier, which is 49 percent

owned by the Government, with 240,700 customers the bulk of which, some 89 percent, consist of 214,700 pre-paid customers.

Post-paid mobile users, who typically represent the more lucrative and high net-worth market, account for just 11 percent or 26,000 of BTC’s subscriber base.

Mr Blackburn, meanwhile, told Tribune Business that Aliv was concentrating on its “innovation agenda” and operations to drive towards profitability, having completed its Bahamas-wide network roll-out inside the end-June 2018 deadline set by its licence and regulators.

He added that the mobile operator had already launched consumer postpay and its wi-fi Soho product, a wireless broadband offering for up to ten users that is targeted at the small home/office market and Family Islands, during the 2018 first half.

And, having completed beta testing, Aliv is now rolling out its Aliv Driver app. This aimed at both

Bahamians and tourists, and allows users to undertake a virtual tour of The Bahamas and its historical sites and attractions.

“It’s the next leg of the innovation strategy,” Mr Blackburn explained.

“You’ll see a lot of stuff like that over the next six months. We’re happy with where we are. Aliv’s network works beautifully on every island.

“It’s about the innovation agenda now. We’re giving people great service; what products can they use it for?”

The top Aliv executive added that its network infrastructure was being “continually strengthened to keep up with the demand”, the operator having upgraded to 4.5G in New Providence and Grand Bahama on July 1.

Resiliency testing for hurricane season has also been conducted, and Mr Blackburn added: “Generally, all our metrics are better than expected.

Dropped calls are pretty much a thing of the past on Aliv’s network.”

Govt planning quarterly fiscal reporting move FROM PAGE ONE committed to it, so we’re putting together the appropriate format,” he explained. “That is a commitment made, and what we’re working towards doing.

“It’s in line with the Government’s commitment, as articulated by the deputy prime minister, to move to more openness and transparency. The Government also intends some time soon to introduce Fiscal Responsibility legislation, and that will require a heightened degree of openness and transparency on fiscal matters.

“Going into quarterly reporting will be consistent with the founding ethos of that legislation, and so citizens are alerted to Budget trends and know what is happening with their tax dollars - both revenue and expenditure.”

The Fiscal Responsibility Bill is intended to transform the Government’s fiscal discipline by locking it into specific deficit targets and longer-term debt ratios, while boosting

transparency and accountability in the management of its financial affairs through enhanced public scrutiny.

Mr Turnquest, in a previous interview with Tribune Business, said the Government planned to bring that bill to Parliament once the latter returns from its summer recess, having failed to make the legislative agenda before the break.

This is likely to coincide with the switch to quarterly fiscal reporting to the Bahamian public, with Mr Johnson predicting that the first one will be released “a few weeks following the end of September” which marks the close of the 2018-2019 budget’s first quarter.

Currently, the Government only gives a full fiscal accounting bi-annually - at the time of the annual May budget, and again in the mid-year budget, which is usually unveiled around February or about eight months into the period.

“We haven’t finalised the details,” Mr Johnson said, “but it’s to give persons a clear snapshot of where we

are from a revenue standpoint, where we are from an expenditure standpoint, where they stand against projections and what the historical trends would have been.

“It will also explain any anomalies and disparities between what was forecast and what they see. That’s the ambition. It helps everybody because we have to be sharper in how we do and present the information going forward.

It creates more citizen engagement as persons are more regularly updated with what’s happening in the budget.”

Given the shift towards quarterly fiscal reporting, Mr Johnson said the Government was unlikely to provide any updates and figures on its initial 20182019 performance until that first release, even though it will now have the first 12 percent VAT returns.

He added that the VAT “zero rating” of breadbasket foods and many pharmaceutical products had “surprisingly been fairly smooth”.

“There was a lot of

concern and consternation, but we got a considerable amount of co-operation from retailers, wholesalers, the pharmacy association and Chamber of Commerce,” Mr Johnson said.

“We were able to work through the guidelines with them. We’ve had no material complaints. In talking to retailers, wholesalers and the Chamber, it seems to have gone relatively smoothly.”

On the consumer side, Mr Johnson said there had been “nothing material” brought to the Ministry of Finance’s attention. “We’ve asked consumers to check their receipts, and there have been one or two complaints where the receipt was not clear,” he added.

“We ask consumers to stay vigilant, to ask questions, and remember there’s a consumer welfare department to engage as they see fit if they don’t understand a transaction.

We want consumers to feel empowered in those circumstances to ask questions.”

Wednesday, August 29, 2018, PAGE 5

Poultry producer’s 40% sales decline the ‘worst in years’ FROM PAGE ONE factors. “I know the paper and aluminium prices have been hit hard. I know the feed costs, like the corn and especially the soybean, has been all over the place,” he said. “The soybean prices have been higher the last three or four months than they have been the last three or four years.”

Both corn and soybean are key poultry feeds. Mr Pinder said the fluctuating prices for these products was likely caused by the escalating trade war between the US and China, with each of the world’s two major trading partners

imposing tariffs on each other’s imports.

“It’s been pretty stable the past few years, but I think this trade war has caused a lot of volatility in those commodities,” said Mr Pinder.

There are fears that the increased trade barriers, and problems accessing the Chinese market, are leading to a huge build-up of meat product inventory in the US. This will result in producers/suppliers seeking other market outlets, creating concerns that The Bahamas and other Caribbean nations could be flooded with cheap meat “dumped” on them from the US.

PAGE 6, Wednesday, August 29, 2018

THE TRIBUNE

Bahamas just 17% ready for disasters FROM PAGE ONE “The results of the iGOPP application in The Bahamas show a general progress level of 17.44 percent, which places the country in the ‘low’ range of advance,” the IDB report revealed.

“The analysis of the results by component of disaster risk management (DRM) public policy reveals that ‘disaster preparedness’ is the most advanced component, reaching 37 percent of compliance, considered as an ‘incipient” progress’ according to the iGOPP classification.

LEGAL NOTICE In the ESTATE OF LUEDEAN OLIVIA THOMPSON, deceased late of the Township of Marsh Harbour, on the island of Abaco one of the islands in The Commonwealth of the Bahamas

“In the same level of progress is placed the ‘Risk reduction’ component, with a 22 percent compliance. In a range considered as ‘low progress’ fall the rest of the components, with ‘general framework of governance for DRM’ reaching 15 percent, followed by ‘financial protection’ and ‘Post-Disaster Recovery Planning’ components, with a 13 percent and 12 percent compliance respectively.”

The IDB’s findings suggest that The Bahamas is woefully ill-prepared to cope with a major hurricane strike that directly hits its major population centres, Hurricane Matthew having provided an insight into how devastating this might be.

It also underscores warnings by KP Turnquest, the deputy prime minister, that The Bahamas is just one such hurricane away from fiscal disaster, given the strained Public Treasury and lack of existing financial protection

for government assets and many businesses/private citizens.

Mr Turnquest, though, will likely argue that the Bahamas’ ‘financial protection’ score should now be higher following the Government’s agreement with the IDB to provide up to $100m in contingent emergency funding should disaster strike.

The Government has also re-negotiated The Bahamas’ insurance policy with the Caribbean Catastrophe Risk Insurance Fund (CCRIF) to divide this nation into three zones, thereby increasing its chances of obtaining a much larger payout following major hurricanes.

Yet the IDB report warned: “It is important to underscore that The Bahamas currently lacks a legal framework for comprehensive disaster risk management that explicitly addresses all risk management processes related to prospective, corrective and

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

Notice is hereby given that all persons having any claim or demand against the above Estate are required to send the same duly certified in writing to the undersigned on or before the 15th day of September, A.D., 2018 after which date the Executor of the Estate will proceed to distribute the assets having regard only to those claims of which they shall then have had notice.

The Public is hereby advise that I DENISE-LA SABRINA McCOY, on the Island of New Providence intend to change my name to DENISE-LA SABRINA NEWBOLD. If there are any objections to the change of name by deed poll you may write such objections to the Chief passport Officer, P. O. Box N-792, Nassau, Bahamas no later than thirty (30) days after the date of the publication of this notice.

AND TAKE NOTICE that all persons indebted to the Estate are required to make full settlement on or before the date hereinbefore mentioned.

Pursuant to the Provisions of Section 138 (4) of the International Business Company Act 2000, Notice is hereby given that: HYDRANGEA COMPANY LIMITED is in voluntary dissolution; The dissolution of the said Company commenced on 19 March, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General.

The Liquidator of the said Company is BF COMPANY LIMITED of 51 Frederick Street, P. O. Box N-4853, Nassau, Bahamas.

Dated this 21 day of August, 2018 BF COMPANY LIMITED Liquidator

MARKET REPORT TUESDAY, 28 AUGUST 2018

HYDRANGEA COMPANY LIMITED (In Voluntary Liquidation) t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

BISX ALL SHARE INDEX: CLOSE 1,973.65 | CHG -2.77 | %CHG -0.14 | YTD -89.92 | YTD% -4.36 BISX LISTED & TRADED SECURITIES 52WK LOW 3.50 19.17 7.50 3.32 0.90 0.12 2.60 8.55 6.09 3.33 9.00 2.30 1.40 7.25 6.00 9.50 5.67 3.25 12.50

1050.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 ##########

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y

BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

LAST CLOSE 3.90 17.43 9.09 4.06 1.00 0.18 2.75 9.17 6.15 3.75 12.50 2.66 1.75 7.64 6.21 13.00 6.36 3.75 13.00

CLOSE 3.90 17.43 9.09 4.06 1.00 0.18 2.60 9.17 6.15 3.75 12.50 2.68 1.75 7.67 6.21 13.00 6.36 3.75 13.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 -0.15 0.00 0.00 0.00 0.00 0.02 0.00 0.03 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00

CHANGE 0.00

108.62 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00 108.62 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME 230 300 2,000

200

50 1,000

16

VOLUME

EPS$ 0.268 0.932 -0.306 0.317 0.059 0.000 -0.996 0.700 0.573 0.171 0.627 0.102 0.231 0.000 0.545 0.679 0.719 0.277 0.631

DIV$ 0.100 1.130 0.000 0.230 0.000 0.010 0.000 0.710 0.220 0.120 0.620 0.060 0.070 0.084 0.320 0.500 0.200 0.120 0.590

P/E 14.6 18.7 N/M 12.8 N/M N/M -2.6 13.1 10.7 21.9 19.9 26.3 7.6 N/M 11.4 19.1 8.8 13.5 20.6

YIELD 2.56% 6.48% 0.00% 5.67% 0.00% 5.56% 0.00% 7.74% 3.58% 3.20% 4.96% 2.24% 4.00% 1.10% 5.15% 3.85% 3.14% 3.20% 4.54%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75% 6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

MATURITY 19-Oct-2022 ############### 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

MUTUAL FUNDS 52WK HI 2.17 4.16 2.01 180.30 157.58 1.56 1.70 1.64 1.10 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.45 11.20

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.50 1.62 1.58 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

NAV 2.17 4.14 2.01 180.30 155.10 1.56 1.70 1.65 1.09 7.27 8.32 6.48 11.32 11.71 10.31 9.93 8.45 11.20

YTD% 12 MTH% 2.24% 4.15% 0.03% 4.59% 1.23% 2.26% 0.90% 3.44% 1.11% 6.05% 2.14% 4.33% 0.17% 4.01% 1.67% 4.18% -0.96% 0.73% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.61% 0.75% 1.13% N/A 2.95% N/A

NAV Date 31-Jul-2018 31-Jul-2018 27-Jul-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jul-2018 30-Jul-2018 30-Jul-2018 30-Jul-2018 30-Jul-2018 30-Jul-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018

MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

that can be directed towards disaster risk management and climate change activities.

“It is recommended that the Ministry of Finance develops a financial strategy or policy to guide the financial management of disaster risk in the country, informed by the experiences of similar undertakings by other ministries of finance in the region,” the report added.

“It is recommended to include in the design of the Green Fund, under development by the Ministry of Environment, provisions for financing or co-financing climate change adaptation (CCA) and related DRM activities.”

The IDB also found the utilities regulatory regimes to be inadequate because they did not impose disaster risk analysis requirements.

“No evidence of allocation of resources for performing disaster risk reduction activities was found at the public utilities companies... The Water and Sewerage Corporation (WSC) mentioned in an interview that they are gradually incorporating climate change into the designs of desalination plants in six Family Islands as well as in New Providence.

“Bahamas Power and Light (BPL) mentioned that they have conducted activities to improve its infrastructure, which included replacing aging infrastructure for underground cables, reinforcing overhead networks in consideration of natural hazard risks – designed to withstand Category 3 – and built a new set of lines on steel poles to withstand Category 5.”

HYDRANGEA COMPANY LIMITED (In Voluntary Liquidation)

L.C. Hull & Co. Chambers Attorneys for the Executors P.0. Box AB-20415 1100 East Bay Street Marsh Harbour, Abaco Bahamas.

52WK HI 4.50 19.17 7.50 4.10 1.39 0.19 3.92 9.17 6.60 5.30 12.00 2.71 1.77 8.21 6.21 13.00 7.00 13.67 13.00

reactive management.”

While The Bahamas possessed legislation through the Disaster Preparedness and Response Act 2008, and a preparedness and response plan, the IDB called for “an updated policy framework” to “promote a more holistic approach” in this area.

It also identified “major gaps” in planning and policies to reduce The Bahamas’ disaster vulnerability, even though the Planning and Subdivisions Act contained provisions linking land use and occupation to such risks.

“There is also a very relevant, but not yet approved, policy for the housing sector with regards to the avoidance of rebuilding in vulnerable areas, as well as raising the height of land for new housing projects, which would have positive impact in the iGOPP results should they become formal regulations,” the IDB report said.

“It is also important to underscore that The Bahamas lacks an integrated, institutional framework for investment management, as well as related regulations for quality control of public investments, which hinders the possibility of introducing disaster risk criteria into the investment planning processes.”

The Bahamas had also made “a low advance” in obtaining financial protection against disasters, although this assessment was made before the recent CCRIF and IDB initiatives.

To improve its resilience to natural disasters in the shortterm, the IDB recommended that The Bahamas identify funds in the annual budget

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

NOTICE Notice is hereby given that DENISE New PIERRE of Wilson Track, Providence, Bahamas is applying to the Minister responsible for nationality and Citizenship, for Registration/ Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written signed statement of the facts within twentyeight days from the 22nd August, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas.

NOTICE Notice is hereby given that LAURIE FELIX of Bacardi Road, New Providence, Bahamas is applying to the Minister responsible for nationality and Citizenship, for Registration/ Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written signed statement of the facts within twentyeight days from the 22nd August, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas.

NOTICE Notice is hereby given that EMANIS SIMILIS of Hanna Hill Eight Mile Rock, Freeport, Grand Bahama, Bahamas is applying to the Minister responsible for nationality and Citizenship, for Registration/Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written signed statement of the facts within twenty-eight days from the 22nd August, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas.

THE TRIBUNE

Wednesday, August 29, 2018, PAGE 7

Trump accuses Google of biased searches, warns ‘be careful’ WASHINGTON Associated Press PRESIDENT Donald Trump yesterday accused Google and other US tech companies of rigging search results about him “so that almost all stories & news is BAD”. He offered no evidence of bias, but a top adviser said the White House is “taking a look” at whether Google should face federal regulation.

Google pushed back sharply, saying Trump’s claim simply wasn’t so: “We never rank search results to manipulate political sentiment.”

The president’s tweets echoed his familiar attacks on the news media — and a conservative talking point that California-based tech companies run by CEOs with liberal leanings don’t give equal weight to opposing political viewpoints.

They also revealed anew his deep-seated frustration he doesn’t get the credit he believes he deserves.

The president, who has said he runs on little sleep, jumped onto Twitter before dawn yesterday to rehash his recent complaints about alleged suppression of conservative voices and positive news about him.

He followed that up with vague threats in Oval Office comments.

“I think Google has really taken advantage of a lot of people, and I think that’s a very serious thing. That’s a very serious charge,” Trump said, adding that Google, Twitter, Facebook and others “better be careful, because you can’t do that to people”.

Trump claimed that “we have literally thousands and thousands of complaints coming in. ... So I think that Google and Twitter and Facebook, they’re really

be the most authoritative, informative and relevant.

Many factors help decide the initial results, including how much time people spend on a page, how many other pages link to it, how well it’s designed and more.

Trump and some supporters have long accused Silicon Valley companies

of being biased against them. While some company executives may lean liberal, they have long asserted that their products are without political bias.

Media analyst Ken Doctor said it doesn’t make sense for massmarket businesses like Google to lean either way

politically. He characterised the complaints as a “sign of our times”, adding that, years ago, if the head of General Electric was supporting a Republican candidate, people who disagreed wouldn’t then go out and boycott GE products.

“The temperature has risen on this,” Doctor said.

PRESIDENT DONALD TRUMP treading on very, very troubled territory and they have to be careful.”

Larry Kudlow, the president’s top economic adviser, told reporters later that the White House is “taking a look” at whether Google searches should be subject to some government regulation. That would be a noteworthy development since Trump often points proudly to his cutting of government regulations as a spur for economic gains.

In his tweets, Trump said — without offering evidence — that “Google search results for ‘Trump News’ shows only the viewing/reporting of Fake New Media. In other words, they have it RIGGED, for me & others, so that almost all stories & news is BAD. Fake CNN is prominent.

Republican/Conservative & Fair Media is shut out.

Illegal?” He added, again with no evidence, that “96% of results on “Trump News” are from National Left-Wing Media, very dangerous.”

A search query yesterday morning, several hours after the president tweeted, showed stories from CNN, ABC News, Fox News and the MarketWatch business

site, among others. A similar search later in the day for “Trump” had Fox News, the president’s favoured cable network, among the top results.

Google, based in Mountain View, California, said its aim is to make sure its search engine users quickly get the most relevant answers.

“Search is not used to set a political agenda and we don’t bias our results toward any political ideology,” the company said in a statement. “Every year, we issue hundreds of improvements to our algorithms to ensure they surface highquality content in response to users’ queries. We continually work to improve Google Search and we never rank search results to manipulate political sentiment.”

Experts suggested that Trump’s comments showed a misunderstanding of how search engines work.

Google searches aim to surface the most relevant pages in response to a user’s query, even before he or she finishes typing. The answers that appear first are the ones Google’s formulas, with some help from human content reviewers, deem to

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PAGE 8, Wednesday, August 29, 2018

THE TRIBUNE

Why Canada’s exclusion from US-Mexico deal raises obstacle WASHINGTON Associated Press PRESIDENT Donald Trump’s drive to revamp the North American Free Trade Agreement has taken an unexpected turn — one that complicates his effort to replace that deal with one more favourable to American workers.

Canada, America’s longtime ally and No 2 trading partner, was left out of a proposed deal Trump just reached with Mexico and is scrambling to keep its place in the regional free-trade bloc — and fend off the threat of US taxes on its vehicles.

By contrast, Mexico, long the target of Trump’s ire, has cut a preliminary deal with the United States to replace NAFTA with a pact that’s meant, among other things, to shift more manufacturing into the United States.

In announcing the deal on Monday, Trump said he wanted to call it the “United States-Mexico Trade Agreement”, pointedly omitting Canada.

Canadian foreign affairs minister Chrystia Freeland hurried to Washington yesterday to try to repair the damage. But she doesn’t have much time.

US trade rep Robert Lighthizer intends to formally notify Congress of the deal on Friday. This would begin a 90-day countdown that would allow Mexico’s outgoing president, Enrique Pena Nieto, to sign the new pact before leaving office Dec 1.

Otherwise, President-elect Andres Manuel Lopez Obrador might want to reopen the negotiations and further complicate the prospects for a new agreement.

To intensify the pressure on Canada, Trump threatened on Monday to slap taxes on Canadian auto imports.

As a result, said Philip Levy, a senior fellow at the Chicago Council on Global affairs and a White House trade adviser in the administration of President George W Bush, Freeland is negotiating “under threat of auto

MEXICAN Secretary of Economy Ildefonso Guajardo, centre, speaks to Jesus Seade, left, designated chief negotiator of Mexican President-elect Andres Manuel Lopez Obrador, as Mexican Foreign Minister Luis Videgaray, far right, speaks during a news conference at the Mexican Embassy in Washington, on Monday. The Trump administration and Mexico have reached a preliminary accord to end the North American Free Trade Agreement and replace it with a deal that the administration wants to be more favourable to the United States.

Photo: Pablo Martinez Monsivais/AP tariffs or the demolition of NAFTA”.

The Trump administration says the deadline isn’t as tight as it seems. After notifying Congress of the new trade pact, it has 30 days to make public a copy of the full text.

“That means they have wriggle room” to fine-tune the details and squeeze Canada into a reimagined North American trade bloc, Levy said.

US treasury secretary Steven Mnuchin sounded an optimistic note yesterday.

“Our objective is to get Canada on board quickly,” Mnuchin told CNBC. “I don’t anticipate there is going to be a lot of sticking points.”

Business groups and members of Congress are already demanding that Canada remain in the regional trade agreement.

When the Trump administration notified Congress last year that it intended to renegotiate NAFTA, critics note that administration said it would begin talks with both Canada and Mexico. It’s unclear whether the Trump team even has authority to reach a pact with just one of those countries. And Congress, which has to approve any NAFTA rewrite, might refuse to endorse a deal that excludes Canada.

“I don’t think we’ve seen something like this before,” said Stephen Orava, a trade lawyer who is a partner at the King & Spalding firm.

“The path, both legally and politically, is a lot more complicated and has a lot more land mines.”

After taking effect in 1994, NAFTA tore down most trade barriers among the United States, Canada and Mexico. Trade within the bloc soared. But many manufacturers moved plants south of the border to capitalise on low-wage Mexican labor and then shipped goods back to the United States.

During the presidential campaign, Trump railed about the manufacturing jobs lost to Mexico and about the US trade deficit with its southern neighbor: $69bn last year.

This week’s trade pact is meant to change the ground rules and return some manufacturing to the United States. Among other things, the US-Mexico deal requires that 40 percent to 45 percent of car be made in a country with auto wages of at least $16 an hour in order to qualify for duty-free status.

Mexican auto workers now earn an average of just over $5 an hour, Americans nearly $22 an hour.