NOVEMBER 2015 TRADE MISSION TO TRINIDAD & TOBAGO

Transcription

1 NOVEMBER 2015 TRADE MISSION TO TRINIDAD & TOBAGO Participants: Lynn Preator, Ross Voelker, Matt Stawowy, Charles Wachsmuth, and Randy Duckworth Report Prepared for US Dry Bean Council and USDA FAS by Randy Duckworth (US Dry Bean Council Representative)

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3 TRINIDAD AND TOBAGO Itinerary DATE TIME WHO WHERE Wednesday 08:00 Anthony P Scott 18 th Renuka Adiah Divisional Sales Manager "The Atrium", Don Miguel. Extension Road, San Juan, # Trinidad Tel : ext 223 Mobile : radiah@anthonypscott.com Wednesday 10:00 Southern Food 18 th Basket Ms Mati Maharaj Wednesday 12:45 National 18 th Canners Limited Mrs. Abigail Lochan and Mr Afzal Rahamut. Foreign Purchases Manager. # Coffee Street San Fernando, Trinidad Tel: (1 868) southernfoodbasketcompanyltd@gma il.com Churchill Roosevelt Highway, Arima, (opposite to the Santa Rosa Racetrack) Tel.: Mail:AfzalRahamut@nationalcanners. com Wednesday 14:30 Pepe s 18 th Marketing LTD. Krishna Sadal. LP#3 BEDESSIE STREET ST. AUGUSTINE, TRINIDAD Tel.: / Mail:psadal@yahoo.com / psadal@pepesmkt.com 3

4 Conclusions and Recommendations The island nation of Trinidad and Tobago is made up primarily of peoples of Indian and African ethnicity. Based on historic traditions they consume a variety of beans, chickeas and lentils. In terms of beans they consume primarily light red kidney beans, black-eye beans and pink beans (as well as small amounts of lima beans, black beans and other types). As a former British colony they also acquired a habit of regularly consuming baked beans. In addition to beans they consume a 7,8 and 9 mm chickpeas and substantial amounts of lentils. There is no significant bean production in Trinidad and Tobago. Beans are primarily imported from Belize, Canada, and the United States. Chickpeas are imported primarily from Canada and India. Belize and Trinidad & Tobago are members of CARICOM. CARICOM members grant each other duty free access for domestically produced products. As a result, Belize exporters can export light red kidney beans and black-eye beans to Trinidad and Tobago duty free. U.S. exports of light red kidney beans, navy beans and black-eye beans are subject to a 40% duty. Despite the 40% duty on U.S. light red kidney beans, navy beans, and black-eye beans there are opportunities for U.S. dry bean exports to Trinidad and Tobago. U.S. exporters can export varieties not produced in Belize such as pink beans. Additionally, there is an opportunity to export chickpeas, navy beans and light red kidney beans to the only canner in Trinidad - National Canning Ltd. National Canning Ltd. import light red kidney beans from outside Belize due to insect issues with the Belize beans. They also import garbanzo beans and navy beans from North America. Recommendations My first recommendation is to invite representatives of National Canning Ltd. to participate in next U.S. reverse trade mission. My second recommendation is to visit trade members in Trinidad and Tobago once every 2-3 years. It s not a large market but it is worthy of periodic trade service. 4

5 General Economy Trinidad and Tobago depends upon oil and gas revenues to keep its economy afloat. Proceeds from oil and gas allow for subsidized housing, fuel, energy, general utilities, health care, and transportation. Despite vast petroleum and gas wealth T&T s expenditures have been outstripping revenues, which is leading for calls to diversify the economy. CARICOM Trinidad and Tobogo is a member of CARICOM trade group. The members of CARICOM include Antigua, Barbuda, The Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saint Lucia, St. Kitts, Nevis, St. Vincent, the Grenadines, Suriname and Trinidad and Tobago US Exports to Trinidad and Tobago! 2011! 2012! 2013! 2014! 2015! Dried!Beans! 225! 342! 404! 1236! 110! Dried! Chickpeas! 193! 424! 136! 46! 69! Total! 418! 766! 540! 1283! 180! 5

6 (Source: USDA FAS GATS) Import Negative List The Import Negative List, established in the 1940s, started as a system of restrictions to protect young industries in T&T. The List, which does not apply to CARICOM imports (with the exception of oils and fats). Dry beans are on the Import Negative list meaning that an import permit is required to import dry beans into Trinidad (it is reportedly not difficult to obtain an import permit). A 15% duty is applied to black-eye beans and 40% duty is applied to red kidney beans and navy beans. For certain products importers may apply for conditional duty exemptions. However, red kidney beans ( ) and fresh black-eye beans ( ) appear to be inelligible for conditional duty exemption ( Duties Products from CARICOM countries are generally excluded from any duties when being imported from another CARICOM country. Products from non-caricom countries that are available from another CARICOM country are generally subjected to import duties (in order to protect the domestic production capacity of the CARICOM country). With that in mind, light red kidney beans and black-eye beans are produced in the 6

7 CARICOM country of Belize and therefore subject to import duties when imported from countries outside of CARICOM (per duty schedule below). The importers we spoke with were not consistent when informing us about the import duties on beans. They were consistent in telling us there were import duties on light red kidney beans and black-eye beans. One said all classes of U.S. beans were subject to 40% duty. Another said only the types produced in CARICOM region (Belize) were subject to duty. The latter view would be consistent with situation in fellow CARICOM country Jamaica. It is also consistent with fact that we saw significant quantities of dry pack pink beans that were most likely imported from the U.S. or Canada. Light Red Kidney Beans Light red kidney beans are imported duty-free from Belize. U.S. light red kidney beans are subject to 40% import duty. However, one of the largest importers of light red kidney beans, National Canning Ltd., told us that they are unable to use light red kidney beans from Belize in their canning process because of insect problems (weevils). 7

8 Pink Beans We found significant volumes of pink beans in grocery stores that we visited. The volume and pricing suggested to me that the pink beans were likely being imported duty free. 8

9 Black-Eye Beans Black-eyes are produced in Belize. As such, the importers we spoke with imported black-eyes from Belize because of duty free treatment. 9

10 Navy Beans According to T&T duty schedule navy (pea) beans are subject to 40% import duties from non-caricom sources. Even so, there have been exports of Canadian navy beans to T&T for use in canning sector. 10

11 Black Beans We saw very minor volumes of black beans in the marketplace. 11

12 Canned Imports NOTES FROM MEETINGS Anthony P. Scott & Co. Ltd. Anthony P. Scott & Co. Ltd. is an importer and distributor. They have been in business for 44 years and have 7 different divisions. They distribute Bob s Red Mill, Goya and numerous other food brands. They told us their pharmaceutical distribution division is the largest in Trinidad and Tobago. They are not currently importing dry pulses but were very interested in potentially doing so in the future as they felt it would be a good fit for their company. 12

13 Southern Food Basket They have 5 supermarkets and distribute to other smaller supermarkets. We were told they have new packaging capabilities. They currently purchase light red kidney beans, black-eyes, pink beans, lentils and split yellow peas. They buy light red kidney beans and black-eye beans from Belize. We were told there is no duty on pink bean imports from U.S. National Canning Ltd. The purchasing manager, Abigail Chickoree Lochan, told us they use following volumes of pulses annually: Navy 200 mt LRK 200 mt Garbs 9mm 100 mt Pigeon pea 300 mt The imported navy beans are used to make baked beans. Because of insect problems with LRK from Belize, National Canning Ltd seeks permission to import LRK from outside CARICOM. They informed us that because they have a legitimate reason its not a problem for them to obtain the necessary import permit. They have purchased U.S. LRK through brokers before and they purchased garbs and navy beans from Canada. They are very interested in quotes for mt of 9 mm canning quality garbanzo beans for February 2016 delivery. 13

14 (above: National Canning Ltd.) Pepe s Marketing Ltd. Krishna Sadal was not at the office when the group arrived. We left information about the U.S. industry and suppliers.. 14