Caribbean Export OUTLOOK 2016

CIMEX, one of the largest Cuban importers positioned

as an upmarket distributor with both wholesale and

retail operations, uses predominantly letters of credit

to purchase goods. In some instances they have used

bank transfers and exchange letters. While payment

terms are negotiable depending on the demand and

turnover rate of a specific item, 180 days is normal for

payment after the Bill of Laden or Airway Bill has been

received by the supplier.

Feedback on the ground suggests themonths of July and

August are not good times to conduct new business –

these are the summer months and as such are slower

than othermonths of the year for business negotiations.

Participation in the long-standing FIHAV can be

strategic. FIHAV is the largest annual multi-sector

trade fair in Havana, running for over 30 years. This

year’s November edition will mark the 33rd year of

its staging, and already appears to be fully booked

with countries world-wide participating, including

from Germany, France, Spain, Italy, Canada, Latin

America, andChina. Adelegation fromHaiti and the

Dominican Republic will also be attending supported

by Caribbean Export.

Governmental Support

So how can CARICOM governments assist their

businesses to penetrate the Cuban market? The

strategy used by Trinidad and Tobago is instructive.

If the potential of the Cubanmarket is truly embraced,

a regional trade facilitation entity could be for

CARICOM exporters what Trinidad’s facilitation

office has been for their own exporters.

A united regional face at the FIHAV Expo will be

important. Caribbean Export, under its Haiti-

Dominian Republic Bi-National Programme has for

the past few years organised a pavilion during the expo

for exporters primarily fromHaiti and the Dominican

Republic.

Some further private sector suggestions relate to the

registrationprocesswhichiscostlyandtime-consuming.

National governments could consider assistance in this

regard as a means of support that will be impactful and

appreciated.

Thoughmuch economic reform still has to take place

to stimulate real growth in Cuba, and much will

depend on the depth and pace at which these reforms

are implemented, the market is burgeoning with

potential, and time is of the essence for CARIFORUM

businesses to gain first-mover advantage vis-à-vis their

US counterparts.

Beverley Alleyne is a Senior Business Development Officer of the Barbados Investment and Development Corporation. She has over 12 years’

experience in the business of export development and promotion, managing a cross-section of large and SME exporters.

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