Caribbean Export OUTLOOK 2016

Caribbean’s highly prized rums to the Chinese

people,” he said.

One of the main issues that CARIFORUM

companies face is the issue of partnership and

representation in China to provide a reliable

distribution channel for their products. Those

who make full use of government investment

and export agencies have the benefit of assistance

to helpmake the relevant introductions, thereby

paving the way for a mutually beneficial business

relationship.

While John-Williams believes the establishment

of trade desks is a great step towards increasing

the region’s export output, he prefers the personal

touch.

“I believe that increased people to people

exchanges from an educational, cultural and

arts perspective is also very important in trying

to establish strong business ties in China. Many

CARIFORUMcompanies and entrepreneurs now

travel many times a year to China. However, there

are still relatively fewCARIFORUMnatives that

not only speak fluent Chinese, but have been

educated in international politics and diplomacy

with a focus onChina. There needs to be a greater

interest and support for young people to study

abroad in China or to participate in school or

sports and cultural exchange programmes.”

Cuba, although not a CARIFORUM State, is a

Caribbean country that stands out in terms of

maximising this type of exchange with China.

Cuba is well positioned to not only receive a

substantial amount of trade from China upon

the thawing of ties with the US, but it will be in a

better position to benefit from increasedChinese

tourism to the region as it has more Mandarin

speakers and natives who have spent a significant

amount of time inChina when compared tomost

other CARIFORUM countries.

If the region is to benefit from increased export

trade with China, it must not only present a

unified front but also find ways to deepen ties in

a tangible way with the global superpower. For

the CARIFORUM nations, this will provide a

stable foundation formoving forward andmutual

prosperity between the region and China.

a proper Air Transport Framework Agreement

that would allow increased direct flights between

China and the CARIFORUM region. Greater

efficiency by both public and private tourism

travel entities must be accomplished.

“Chinese tourists will not travel a great distance

to the CARIFORUM region unless they feel

confident that the trip will be worth it, that

their safety will be guaranteed and that sufficient

infrastructure will be in place,” John-Williams

noted.

Moving Forward

Companies from countries in the region

that do not enjoy special trading or free trade

arrangements with China have to pay hefty

import and luxury consumption duties and taxes.

And although the Chinese government lowered

the import duty by 50% on luxury items such as

cosmetics, fashion and other beauty products, for

many items the cost of exportation remains high.

Firms looking to export to China would benefit

significantly from a regional push, at both the

state and private sector levels, that encourage the

export of local goods and services through the

pursuit of multilateral agreements. A joint effort

by CARIFORUM governments will increase

their bargaining power, as opposed to attempting

to negotiate on an individual country basis. Each

CARIFORUMmember country will have its own

unique trading agenda and needs, but moving

forward it is important for the region to utilise

a collective bargaining strategy as it positions

itself for improved trading conditions, especially

as it relates to the establishment of a free trade

agreement.

Ambassador Singh notes there is power in

numbers when attempting to penetrate the

market and believes that this can be a winning

strategy for breaking into the rum industry.

“CARIFORUMfirms must take advantage of the

vast and lucrative Chinese market, especially in

the rum market that is yet to be developed in

China. However, with high import duties and

competition by other brands, there should be

a combined effort by CARICOM countries to

mount a joint promotional campaign to bring the

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