The French Caribbean Outermost Regions (FCORs) as a Gateway to Europe
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Transcript of The French Caribbean Outermost Regions (FCORs) as a Gateway to Europe
The French Caribbean Outermost Regions (FCORs) as a Gateway to
Europe
By
Noel Watson Ph.D.
Consultant, Enabling Environments Ltd April 15-16, 2015
Making ACP countries a better place
for doing business
This document has been produced with the financial assistance of the
European
Union. The views expressed herein can in no way be taken to reflect the
official
opinion of the European Union nor of the ACP Secretariat
To identify
Opportunities for trade with the FCORs
Preparatory activities and critical success factors for
CARIFORUM exporters
How the FCORs’ favourable relationship with France can be
used as a potential gateway to the EU market
Objectives
In 2009-10
– A-Z Information conducted a study on Opportunities for Doing Business between CARIFORUM States and the FCORs
– Funded by EU In 2012-13
– A-Z Information conducted Missions to FCORs with TT exporters
– Funded by CART Fund
Background
Nearly 0.5 Billion people
28 Countries
CARIFORUM and the FCORs
Whither the FCORs: Caribbean or Europe?
Geography
» Caribbean – same region, marine resources » Typically small (island) states » Weather/climate » Beautiful beaches
Demography
» Relatively small populations Heritage/History/Sport
» African, European, Indian heritage » World famous sports persons and artistes
Vulnerability
» Natural disasters » Limited exports products » High import dependence
What Do CARIFORUM and FCORs have in
Common?
Economic » Per capita income » Wage rates » Expertise and technology
Political system/structure » FCORs: Department of France » CARIFORUM: Independent
• (with British, Dutch, French, Spanish systems and language)
Relationship with EU
» Part of EU versus Independent but linked through EPA
Language
» Interpreter might be needed
Culture » Music » French Influence
What are Some of Main Differences Between
FCORs and CARICOM
Socioeconomic Variable Martinique Guadeloupe French Guiana
GDP per capita, current prices (US Dollar)
24, 120 21,703 15,955
Inflation, average consumer prices (Index, 2000=100) 2007-2008
2.7 2.2 3.3
Population 395,953 405,139 205 ,954
HDI Rating (French Rating) Very High Very High Very High
Distance FDF from Miami - Miles
1464 1377 3768
Main Exports Refined oil, agro-products (banana, rum), services
Agro-products (sugarcane, banana), light industry, transshipments
Gold, fishing (shrimps), rice, wood.
Main Industries Agro-products, construction, oil refinery, services (trade, tourism, public)
Agro-products, construction, services (trade, tourism, public)
Agro-products, construction, services, aerospace industries
Minimum wage rate : 9.61€ per hour 9.61€ per hour 9.61€ per hour
>JMD 2 million/year
VALUE OF COUNTRY/REGION TOTAL EXPORTS BY SELECTED SITC SECTIONS WITH FCOR: 2011-2013 (source: http://www.caricomstats.info/tradsysonline)
COUNTRY/REGION 2011 2012 2013
US$ US$ US$
CARICOM 176,203,443 234,348,808 204,543,222
MDCs 170,884,630 229,282,151 199,053,703
Barbados 1,496,766 1,599,446 1,659,873
Guyana 1,931,471 1,933,405 955,763
Jamaica 5,846,997 5,239,159 5,736,787
Suriname - - -
Trinidad & Tobago 161,609,396 220,510,141 190,701,280
LDCs 5,318,813 5,066,658 5,489,520
Belize 7,892 3,228 2,048
OECS 5,310,921 5,063,430 5,487,472
Antigua & Barbuda 868,290 983,954 798,235
Dominica 2,475,092 3,243,583 3,269,051
Grenada 262,894 275,180 355,496
Montserrat - - -
St. Kitts & Nevis 577,279 301,076 94,607
St. Lucia 1,125,003 259,118 968,200
St. Vincent & the Grenadines 2,363 519 1,883
VALUE OF CARICOM'S TOTAL EXPORTS BY SELECTED SITC SECTIONS WITH FCOR: 2011-2013 (source: source: http://www.caricomstats.info/tradsysonline)
Commodity Description
2011 2012 2013
US$ US$ US$
ALL SECTIONS 176,203,443 234,348,808 204,543,222
FOOD AND LIVE ANIMALS 9,913,722 9,224,558 8,593,590
BEVERAGES AND TOBACCO 5,074,212 6,093,398 4,952,190
CRUDE MATERIALS INEDIBLE, EXCEPT FUELS 2,801,231 1,796,177 1,849,127
MINERAL FUELS, LUBRICANTS AND RELATED
MATERIALS
130,963,400 83,612,529 162,393,923
ANIMAL AND VEGETABLE OILS, FATS AND WAXES 65 537 370
CHEMICALS AND RELATED PRODUCTS, N.E.S. 12,685,324 36,906,626 7,424,998
MANUFACTURED GOODS CLASSIFIED CHIEFLY BY
MATERIAL
12,353,571 94,815,419 17,148,268
MACHINERY AND TRANSPORT EQUIPMENT 1,125,448 569,371 1,085,487
MISCELLANEOUS MANUFACTURED ARTICLES 1,280,109 1,298,447 1,092,323
COMMODITIES AND TRANSACTIONS NOT
CLASSIFIED ELSEWHERE
6,361 31,747 2,945
Opportunities: Goods Exports From CARIFORUM to FCORs
Based on Mission findings there are distinct possibilities for a number of the targeted items including:
– Cosmetics – Detergents – Electrical products – Furniture products – Safety products – Confectionery – Aggregate products – Packaging material – Labels – Garbage bags
Opportunities in Certain Products
Based on exporTT Missions
Include Senior Managers on Trade Missions for the simple reason that they can make decisions on the spot which may be pivotal in striking deals
Results of THREE Trade Missions to FCORs
Arranged by exporTT
Exploratory
Mission
Market Penetration
Mission
Mission
III
# Companies 17 7 10
Meetings 150 64 131
Leads 75 85
Confirmed Orders 1 6 6
Potential Orders 1 1 5
Days per Territory 2 2 2
Source: exporTT , 2015
T&T Companies Exporting to FCORs Source: TT CSO
1. ABRAHAM SHIPPING CO LTD
2. AG'S GARMENTS
3. ANGOSTURA BITTERS LTD
4. ASSOC BRANDS INDUSTRIES LTD
5. C G A LIMITED
6. CARIBBEAN BOTTLERS T & T LTD
7. CARIBBEAN DEVEL CO LTD
8. CARIBBEAN ISPAT LTD
9. CHAI'S EXOTICS
10. COLLEGE HEALTH FOODS
11. F A AGOSTINI ESTATES LTD
12. FORMULA I I I MARINE LIMITED
13. GENERAL PACKAGING LIMITED
14. HUMMINGBIRD GRAINS LTD
15. INDUSTRIAL GASES LTD
16. K C CONFECTIONERY LTD
17. KHAN'S ALUMINIUM PRODUCTS LTD
18. MARITIME PRESERVATION LIMITED
19. MEILING
20. MESSER TRINIDAD & TOBAGO LTD
21. NAT FLOUR MILLS LTD
22. PCS NITROGEN TRINIDAD LIMITED
23. PEPSI-COLA TRINIDAD BOTTLING
24. PETROLEUM COMPANY OF T & T LTD
25. PHOENIX PARK GAS PROCESSORS
26. PIARCO AIR SERVICES LTD
27. RADICAL DESIGNS LIMITED
28. ROTOPLASTICS
29. SOLOMON YUFE & CO LTD
30. STUART BROTHERS (W I) LTD
31. TASTE MAKER MANUF CO LTD
32. TDAD AGGREGATE PRODUCTS LTD
33. THE TEXTILE KING
34. TRINIDAD & TOBAGO TIRES LIMITED
35. WEST INDIAN TOBACCO CO LTD
On Apr 8, 2015, at 6:08 PM, Noel Watson <[email protected]> wrote:
Hi Ronald
How are you? Am I correct in saying that I saw your products on the supermarket shelves on
Martinique and Guadeloupe? Are you also in French Guiana? Are you in any of the European
markets?
Regards
Noel Watson
CEO, A-Z Information Jamaica Limited
On 8 Apr 2015 10:41 pm, "Ronald Ramjattan" <[email protected]> wrote:
Hi Noel
We have been exporting to Martinique, Guadeloupe, French St Marten, France, UK, and
Germany for the longest while.
I am travelling to Guadeloupe tomorrow to sign off on an agreement paving the way for a
Guadeloupe Company to handle the distribution for French Guiana, Guadeloupe and France .
Regards, Ronald Ramjattan, Chief Executive Officer, Baron Foods Ltd.
CARIFORUM-FCORs: Very Specific Current Example
Exchange of emails
Jamaica – Rainforest Seafoods – New Port Fish and Meats – J. Wray and Nephew
Dominica
– Bello Products (Parry W. Bellot & Co. Ltd.)
– Preserves, spices, coffee, chocolate and food condiment sauces
Other Companies Exporting to the FCORs
Opportunities: Services Exports
From CARIFORUM to FCORs
Tour Operator & Tour Guide Services
Hotel & Restaurant Services
Educational Services: Technical & Vocational Services
ICT
Cultural Industries
Energy Distribution Services
An export readiness assessment should be conducted as part of the company’s export planning process.
This assessment when properly designed and conducted can provide insights on the following attributes: – Significant management time and strong management commitment to
export development
– Strength in the domestic market
– The resources to succeed
– Business and export planning in place
Critical Success Factors:
Export Readiness
Important ingredients • Company Profile • Labels • Certification • Production Plant
Examine market data
– Sometimes consolidated with overall French data
– Examine previous studies by Caribbean Export, exporTT, Jamaica Manufacturers Association, etc.
Contact Chambers of Commerce
Critical Success Factors
Business Intelligence
Critical Success Factors Strategic Alliances
If products are in demand, the potential market can eventually extend to mainland France and the wider EU.
Manufacturing under licence
Joint Ventures can yield benefits from technology
transfer from France / FCORs and leverage the
comparative advantages of both regions
Producers may also leverage FCOR expertise in meeting standards and in introducing innovations through the research support from the Metropolis.
Penetrate market by working with distributors that are
already in the FCORs market and in mainland France
Strategic Alliances
FCOR importers have to pay return freight to the EU given the lack of backhaul.
We need to have TT/CARIFORUM products going back in empty containers (win – win)
Critical Success Factors:
Strategic Alliances
Importance of the Chambers of Commerce The Chambers of Commerce are important entities in regulation of
businesses and commerce. All Businesses must be registered with Chamber of Commerce. Until recently, Chamber of Commerce formerly managed ports.
Importance of Agent on the Ground Having an Agent in FCOR can be a major part of the export
company’s success. One Agent may be able to operate effectively in all FCOR countries.
Market visit is very important: Our visits facilitated the assessment
of the market, standards and competition that lies therein.
Show and Retain Interest: Potential Buyers in the FCOR are
impressed with the seriousness demonstrated through the trade
missions as well as with the aggressive follow- up of interests with
telephone calls and emails and the fact that the decision makers are
able to visit in person.
Critical Success Factors:
Trade Missions
Need for a Facilitation Office in the FCOR which just facilitates trade opportunities
– Could Caribbean Export see this as an opportunity??
A Central information portal should be available where potential exporters will go
for general information
– Caribbean Export and the FCOR Chambers??
Supporting Trade Missions
– This is happening • TT
• JMA
• SVG
Needs Identified in Regional Focus Groups
Slow or non-response to emails does not necessarily mean
“lack of interest”
The territories are small and interconnected hence there is a
discussion and cross referencing before coming to a
conclusion
Exporters should pay attention to the terms of payment as
oftentimes very long periods are required
Exclusive distribution of the product is required by some buyers
given the small size of the market.
Important Factors to Note:
FCORs: Cultural Idiosyncracies
Potential Barriers to Trade – Language – Transport costs – Knowledge of French regulations, culture and bureaucracy – Lack of representation or distributors on the ground – High duties when entering the FCORs
• Octroi de Mer
– French culture and perceptions that French products are the best – Visa requirements – especially for some CARICOM countries – The need for market intelligence – data not always easy to obtain
Potential Challenges and Constraints
FCORs provides an excellent regional testing ground for products before attempting to penetrate larger continental French/EU markets
– Once goods have been tested in the FCORs, CARIFORUM exporters can ship directly to France/EU
Relationships with FCOR business persons that ship goods to France can lead to CARIFORUM products entering France
– Take advantage of “backhaul”
Cultural services providers can form strategic alliances that lead to performances in France/EU and CARIFORUM
Cultural events in the FCORs can be packaged with those of CARIFORUM neighbours
– Tourists from France/EU can then be enticed with multi-destination vacations
FCORs As Gateway to Europe
Model for Doing Business with FCORs As a Gateway to Europe
Opportunity
Commodities
•Wide range of goods
•Mineral products
Services
•Tourism, etc.
FCOR Purchasers
•Demand based on trends (past and expected)
•Have income
•Have population
•Like CARICOM products
CARIFORUM Suppliers
•Have capacity
•Meet quality
•Cost competitive
•Understand regulations & EPA
Critical Success Factors
•Market research
•Joint ventures and partnerships
•FCOR expertise in meeting standards
•Distributor/promoter on the ground
•Trade links
Barriers
•Language
•Transport
•Few distributors on ground
•EU Standards
•Visa
Main
EU