Maroc - NEWSDAY.CO.TT - A la Une - 30/Oct 10:55

TTMA CEO: ‘Looking beyond Caricom’

ON OCTOBER 29, Prime Minister Kamla Persad-Bissessar hinted at a "significant realignment" in how TT interacts with its foreign partners in the future. Persad-Bissessar said her government will focus on "increasing linkages and co-operation with countries outside (of) the (Caribbean) region." Her statement comes amid a whirlwind of geopolitical twists and turns – the difference in opinion between the TT government and Caricom heads of state on whether the region is a "zone of peace" and the collateral fallout between TT and Venezuela as a result of TT’s support of the United States’ military presence in the region. This support has resulted in Persad-Bissessar being identified as "persona non grata" and the Venezuelan government suspending energy deals between the two countries. Persad-Bissessar’s latest policy announcement on looking outside the region may have, to some, been seen as another blow to TT’s economic future. However, TT Manufacturers Association (TTMA) CEO Dr Mahindra Ramesh Ramdeen sees her position as a positive thing. In a conversation with Business Day on October 29, Ramdeen noted three key things: firstly, the Prime Minister’s statement in no way suggested that TT will no longer trade with the rest of Caricom, secondly, the Caricom market is still highly important to TT’s manufacturing sector and most importantly, if TT’s manufacturing sector wants to continue expanding its footprint it will have to look beyond Caricom. TTMA encouraged by statement Ramdeen said the TTMA was encouraged by the Prime Minister’s statement, interpreting it as a call to the private sector to break out of its comfort zone. "A lot of people are trying to dissect what the Prime Minister said to mean a bad thing. We at the TTMA view it as something positive. "What she said was a factual thing – we need to push the envelope and find new markets to grow. If we grow more, it means we are producing more. "If we are producing more, it means we can employ more, and it means we are earning more foreign exchange. "We can’t do that by selling to Caricom alone." While the region continues to be a significant market for TT products, he described the regional market as "saturated." [caption id="attachment_1187577" align="alignnone" width="1024"] TTMA CEO Dr Mahindra Ramesh Ramdeen -[/caption] "It’s not that we are ignoring Caricom. It'll be foolish for anybody to say I am going to stop selling to Caricom and look for new markets. That doesn't make economic sense. "Caricom continues to be our number one trading destination for our non-energy exports and it continues to be a very significant market, but we need to penetrate new markets and diversify our portfolios." Noting the increasing uncertainty in the region because of the effects of climate change, Ramdeen said looking beyond Caricom also mitigates risk for manufacturers. "Look at what this hurricane (Melissa) is telling us. With this hurricane hitting Jamaica, it is going to make a significant dent for exports into Jamaica. "They may not be able to take as much as we would want them to, for the next two or three years because they will have to rebuild. "Jamaica is one of our most significant markets in Caricom. So what are we going to do, stop selling? No, we have to continue to sell and find a replacement market for Jamaica. "That doesn’t mean that we are going to ignore that market either," he added. "It is a very important market, so we are going to continue to sell to Jamaica, as much as they can buy from us." With regard to Hurricane Melissa, Ramdeen said the TTMA, along with other chambers and members of the TT business community, are working together with the government to provide support to Jamaica. "We want Jamaica to make a recovery. We want Jamaica to rebuild. A healthy Jamaica means they could continue trading and we can both continue to do well, but Jamaica, like the rest of Caricom is a saturated market." He also dismissed concerns that the current geopolitical tensions in the region could affect trade between the private sectors in each country. "Whatever happens at the political level, at the private sector level we are going to continue to do what we have to do to ensure that manufacturers continue to grow and continue to be sustainable." TT business already looking beyond Caricom Trading Economics, a globally-known provider of economic data and forecasts, indicated that TT made about US$1.16 billion in exports to Caricom countries, with exports to Guyana amounting to US$415 million, Jamaica US$207 million, Barbados US$183 million and Suriname $ US$101 million. Conglomerates such as Ansa McAL, Agostini and Massy have had decades-long footprints in Caricom countries. Ansa McAL, for example, has been in Guyana for more than three decades. Ansa’s Guyana subsidiary, Guyana Breweries Inc handles distribution of Carib Brewery’s products in Guyana. It also operates automotive businesses through Ansa Motors Guyana and has a pharmaceutical and healthcare distribution business in Ansa McAL Guyana. In Grenada, the group operates a brewery which installed a new bottle washer function in 2023. It also manufactures paints for the regional market out of Grenada. It also has operations and presence in St Lucia, Antigua and Barbuda and in the Bahamas where it acquired a minority interest in a brewery. Agostini Ltd, through its subsidiaries Acado Group and Aventa Group, distributes consumer goods through joint ventures in several Caricom countries, including Barbados and Guyana. Describing Jamaica as one of the largest markets in the region, Agostini also made moves over the past few years to expand its footprint in Jamaica. In 2023, it acquired pharmaceutical distributor Health Brands and earlier this year sought to acquire Massy Distribution (Jamaica). Massy, too, has a significant reach in the region with Massy Stores, Massy Distribution, Massy Motors and Massy Gas products operating in countries such as Guyana, Barbados, Jamaica, St Lucia and St Vincent and the Grenadines. Angostura also has a significant presence in Caricom, notably Barbados, Guyana and St Lucia, with plans to expand further in the Caribbean. However, despite TT companies having such a significant and long-standing presence in the region, all of these companies have made moves and expressed plans to look beyond Caricom. In November 2024, Ansa McAL announced its acquisition of US-based chlor-alkali producer Bleachtech LLC through its subsidiary Ansa Chemicals US LLC. It also expanded as far as India in the food and beverage industry, announcing in April that it partnered with Globus Spirits Ltd, a distinguished player in India’s alcoholic beverages industry, to produce Carib beer in the country. Last year, Angostura also noted increases in exports in international markets, with sales for 1919 rum increasing almost 25 per cent in France and three and five-year-old rums seeing an increase in sales in Europe by 16 per cent in 2023. Ramdeen said if TT’s private sector is to grow in a similar fashion, businesses would need to make similar moves. "If we want to get the Angosturas of tomorrow, if we want more like that we now need to push the envelope and look beyond the Caricom market. "I think there is a natural trajectory for growth."   The post TTMA CEO: ‘Looking beyond Caricom’ appeared first on Trinidad and Tobago Newsday.