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4 Barbados Business Catalyst • July - September 2013

July - September 2013Volume 9 #3

Disclaimer:Some of the views expressed in this publication are the views of the writers and not necessarily those of the BIDC. © 2013 BIDC.

Printed By:COT Caribbean Graphics, #16 Newton Industrial Estate, Christ Church.Tel (246) 420 8550 • Fax (246) 420 8555 • Email: [email protected]

The BARBADOS BUSINESS CATALYSTis published quarterly by the Research, Information and Design Services Division of the Barbados Investment & Development Corporation.It offers information and advice on trade and commercial issues to the business community. Information contained herein may be reproduced if accredited to the BIDC. Items of interest to local manufacturers, exporters, entrepreneurs and potential investors are welcome.

Editor:Jane Brome, Email: [email protected]

Editorial Team:Fern Lewis, Email: [email protected] Hutchinson, Email: [email protected] Taitt, Email: [email protected]

Design & Layout:G&A Communications Inc. Cnr. Harts Gaps & Hastings Main Road, Christ Church.Tel: (246) 437-2214; Fax: (246) 228-5204;E-mail: [email protected]

Creative Thinking and Efficient Management of Resources Critical

Correct Measures to Grow Economy

PG. 8 PG. 9

Barbados Enjoys Several Advantages

Barbados’ Economic PerformancePG. 11 PG. 15

Contents

PG. 20Making AnimationCome Alive

56 7

8 - 910 -1112 -13

14 - 1516 -17

18 - 1920 -21

2223

24 - 2526272829

30 - 31

Editor’s Desk - Trade Shows, Expos & ConferencesCEO’s DeskCreative Thinking and Efficient Management of Resources CriticalCorrect Measures to Grow EconomyBarbados Enjoys Several Advantages to Help it Overcome Economic ProblemsProductivity at the Heart of Economic Growth Barbados’ Economic PerformanceMission AccomplishedAdvancing the Cultural Industries Making Animation Come AliveUSFDA Takes StepsNew BNSI StandardsA Healthy Atmosphere, the Future We WantBBC NotebookNew Martinique PortWhen in ColombiaTradescope Manufacts

5Barbados Business Catalyst • July - September 2013

Editor’s Desk

By Jane L. Brome

Trade Shows, Expos and Conferences

This issue, under the theme The Quest for Growth: Adventures and Misadventures, explores Barbados’ economic landscape and the efforts being expended in the pursuit of economic growth. It includes coverage of fiscal reform, new market

exploration and new sector development.

With respect to fiscal reform, we share with you the views of Minister of Finance, Hon. Chris Sinckler on the measures needed to grow Barbados economy. We also hear from Central Bank Governor, Dr. Delisle Worrell on Barbados’ attributes and how these may used in helping the country to overcome its economic problems. Senator Jepter Ince weighs in the importance of creative thinking and efficient management or resources while Executive Director of the National Productivity Council, Mr. John Pilgrim, defines the role of productivity in economic performance.

Coverage of new market exploration extends to the political/commercial mission to Brazil and Barbados’ efforts to deepen

relations with that country. The new sector development drive meanwhile zeros in on the BIDC’s work in advancing the local cultural and animation sectors.

This is but a snapshot of some of the major emerging issues currently dominating the economic landscape. What we however need to bear in mind is that pursuing economic growth, as measured in rising Gross Domestic Product (GDP), is not enough in itself. For all that has been laid out for public debate and all that has been prescribed as policies which may be good for growth, attention is less often given to whether the policies are good for the environment. Are they also good for society?

Whatever path we choose to follow, we should aim to strike a balance against other issues, such as access to health and education, erasing inequality, and achieving environmental sustainability. When one really considers it, it’s not numbers that count but people’s own judgment of the quality of their lives that matters most.

BCCI’s MonThLy LunChEonJanuary 31, 2014

Prime Minister the Honourable Freundel Stuart, QC. MP will speak on the topic “Barbados in 2014 and Beyond” when he address the BCCI January business luncheon. The luncheon is sponsored by Axcel Finance, a company offering microbiz loans to SMEs.

Contact: http://www.barbadoschamberofcommerce.com/

MIDEM 2014January 31 To FEBruary 3, 2014

MIDEM, hosted in Cannes, France, is the place where music makers, cutting-edge technologies, brands and talents come together under one roof to source, sell and sign new music, digital solutions and innovative ideas. Today, the music industry is at the tipping-point of a new era of growth. Recognising this, the Midem 2014 programme will focus on the theme “Get back to Growth? Make it Sustainable! “, and offer participants essential knowledge and tools to successfully accompany their businesses into this new, flourishing age.

Contact: http://www.midem.com/en/the-event/

aPParEL show anD GIFT showFEBruary 2-4, 2014

Apparel Shoe & Gift Show is a unique business event bringing buyers and seller together in a stimulating and friendly environment. This is one of the leading trade fair in Puerto Rico. The event will be held between 02 to 04 February 2014 at Puerto Rico Convention Center, which is being organized by Trade Show Of The Caribbean.

Contact: http://10times.com/apparel-shoe-gift-show

aGroFEsT 2014FEBruary 28-MarCh 2, 2014

Agrofest is the unique agricultural exhibition sponsored annually by the Barbados Agricultural Society.. Farmers, craft persons and processors of agricultural products are among the many exhibitors each year. Last year there were approximately 60,000 visitors over the three day show and over 250 exhibits running daily. This year’s theme is: Encouraging Entrepreneurship Through Innovative Agriculture.

Contact: basonevoice.org



CEo’s Desk

Dr. Leroy McClean

THE QUESTFor GrowTh

Achieving economic growth is very difficult.

Fortunately, we have made some progress in understanding what helps countries develop economically and socially. We do know that economic growth itself requires that countries

maintain those policies which avoid certain pitfalls. These include high inflation and budget deficits, negative real interest rates, corruption, and restrictive trade policies. So if we know at least the minimum policies required for growth, the question then becomes: why don’t most countries adopt them?

Few people nowadays would disagree on the desirability for low inflation and small budget deficits, a fairly valued currency, interest rates that encourage savings and trade policies that don’t force consumers to overpay and that provide the incentives for companies to produce and export goods that can generate wealth.

The real issue then is: How can countries put in place the institutional capacity and governance arrangements that will ensure these good policies are fairly implemented?

These are as much political and social challenges as they are economic ones. Perhaps the answer lies in convincing our economists and social activists not to butt heads, but rather to put their heads together to find the solutions.

The Central Bank of Barbados has indicated that to grow the economy sustainably, we have to grow the foreign exchange earning sectors. Among the main constraints identified within the local productive sectors are: a pervasive risk aversion; a failure

to take advantage of market opportunities; a restrictive domestic orientation; the unavailability of research and development funding and limited access to business intelligence.

All this suggests that we must become better at providing the solutions that will enhance the capacity of businesses to respond to market opportunities. It suggests too that efforts should be directed at building the broad-based national economy necessary for promoting resilience, productivity and innovation. We are acutely aware that the economic well-being of Barbados is precariously perched on a precipice and in danger of plummeting to low levels to which we are unaccustomed.

We will not however relinquish the fight for a better future for us and generations to come, but rather we will, with your help, wrestle a new and thriving economy and society from the complex challenges we face at present. We firmly believe that hard times are the best times to innovate and recreate, thus we are choosing a path that will allow us, through innovative thinking, to construct new industries; integrated sectors; new and improved businesses; high value ventures; all with the unique potential to earn foreign exchange and create high value jobs. At the end of the day, every organization is in pursuit of growth. It’s why we are all in business– to build or create something bigger than ourselves.

We all have a single objective ahead of us – securing the economic future of Barbados by improving the economy in the short, medium and long term. None of us can do this alone. The BIDC is committed to engaging the minds and passion of individuals who we believe can offer vibrant ideas for exploration, persons who are willing to share their knowledge and their will-power to rescue Barbados– persons who will do so unhesitatingly– persons like you!


Private sector-Led Growth

CREATIVE THINKING AND EFFICIENT MANAGEMENTOF RESOURCES CRITICAL

The answer for short, medium and long-term growth, supported by

a viable productive sector, lies in the creative thinking and efficient management of resources in the private and public sectors.

This view was proffered by Parliamentary Secretary in the Ministry of Economic Affairs, Senator Jepter Ince, as he delivered the keynote address at the Seventh Annual Lecture Series of the Division of Economic Affairs, at the Warrens Office Complex. The theme was Private sector-Led Growth and Development in Barbados.

Senator Ince told his audience: “There is simply no substitute for a confident, healthy, investing, innovating and growing private sector to foster the growth that underpins the stability and advancement of our society.

“It should be noted that for this initiative to be highly successful, Government must be proactive in implementing business policies with limited time lags,” he contended.

He pointed out that over the past nine months Government had been in consultation with stakeholders to ensure that efforts to improve the framework and conditions for open and competitive markets were at the core of its policies.

The Parliamentary Secretary acknowledged that Caribbean trade in goods and services with longstanding partners Europe and the United States, was paramount to long-term development, but stressed that Barbados must continue exploring its trade relations with China and Central and South America. He expressed the view that Barbados had expended a great deal of technical and political resources negotiating new trade agreements.

“But, this development has not resulted in the kind of reciprocal export or in financial terms, the type of returns that are expected when we considered the current speculative and sometimes hostile global environment, challenged by constraints of transport, high energy costs and in some cases, the absence of financing,” he explained.

Senator Ince described the Caribbean Sea as an asset that could enable new ideas and he highlighted the widening of the Panama Canal as an opportunity for Barbados to become a logistics hub. He argued, however, that Barbados must decide if it wanted to be a victim or beneficiary of change.

“We can no longer let external forces and actors determine our future by default. This Government, having recognised the opportunities and untapped resources, is aggressively pursuing them with able support from the private sector… Government continues to intensify actions around energy production and consumption fully aware that dynamic changes in the world’s energy sector can change the economic dynamics for us in the region,” he surmised.

Jepter Ince


Government is sticking to the measures outlined in this year’s

Financial Statement and Budgetary Proposals which are

expected to put this country’s economy back on a growth path.

Minister of Finance and Economic Affairs, Christopher Sinckler, believes these measures are the correct ones at this time and has urged all Barbadians to support Government, as it invests in the restructuring, resuscitation and the sustainable development and growth of this society.

“I am very excited about Barbados’ future… We have what it takes, we have a fundamentally good economy, [and] we have a fundamentally good society… Yes, there are challenges for Government and the private sector, but I think if we work together we can achieve a tremendous rebound in our economy and I think this is where we have to be, not nit-picking about this thing and that thing, trying to create confusion and depress the population.

“We need to lift the spirits, say to people, look, let us pull together, let us make the sacrifices, let us make the investment, let us ensure that our economy can go forward, can create new jobs, opportunities and investment, and produce a better and stronger society, as we navigate these very difficult global waters,” Mr. Sinckler implored.

He promised that Government would continue to identify those opportunities and go after them aggressively, while ensuring that

Barbados becomes the best, easiest and most congenial place for investors to do business.

The Minister noted that a number of projects had been identified to bring foreign exchange into the country and grow the economy over the medium to long-term. He listed some of them as remodelling the former Almond hotel so it is managed by an international brand, the Barbados Water Authority’s mains laying project, as well as the cruise pier and Pierhead projects. “We have a couple other very interesting private sector investments [to come on stream] which, unfortunately, I am not empowered to speak about. But, I believe in the next few months, as they are revealed to the public by those private investors, some of whom are from outside of the country, [they] will create that atmosphere that we need,” he stated.

He added that Government had looked at the traditional sectors, namely tourism, agriculture, manufacturing and international business to see what were the issues and if changes needed to be made. According to him, Government has invested heavily in the tourism industry to make it better and he alluded to the tourism 10-point plan and the incentives in this year’s Budget.

He said officials were also looking at additional properties here to engage in public/private partnerships to ensure the quality of the tourism sector could be restored.

Mr. Sinckler acknowledged that Barbados is not the most price competitive country because it has a structure that makes it a little more expensive than the average destination. “But, what

Chris Sinckler

CORRECT MEASURES TOGrow EConoMy

Getting on Growth Path


Getting on Growth Path

we wanted to focus on are issues of quality, of product and quality of service because that [area] is where we are getting the hardest hit. Our hotels, accommodation and other things need to be a lot more congenial and attractive; our quality of service, that is, how we treat the tourists needs to be a lot better… The issues of service in restaurants, in the same hotel properties, generally how Barbadians interact with the tourists, how quickly they can get in and out of the country, those are issues that we have absolutely to focus on, because they will beat price. A person will pay an additional amount to come to a place if they feel the quality is great and the service is excellent. Those are the areas that we have to focus on and that we are addressing, not only in the Budget, but the Medium-Term Growth and Development Strategy,” he stated.

In the area of agriculture, he contended that the sugar industry had been struggling for years and it had not received the type of restructuring it should. He opined that successive administrations had watched it limp along to the stage where it was practically flat on its back. “And, we say that this is enough, we need to do something about this. And, that is why the Ministry of Agriculture, under the leadership of Dr. [David] Estwick, has come up with a comprehensive agricultural reform plan which is going to be led by a reform of the sugar industry…to being a sugar cane industry,” he pointed out.

The Minister is of the view that the multi-million dollar Barbados Cane Industry Project, which is being undertaken with the assistance of Japan, would give the country an entirely new platform to move agriculture in a direction that would add more value to the industry so foreign exchange could be saved and jobs created.

He indicated that Government was also looking at new sectors and identified alternative energy as one of the new and exciting areas. “We have done a complete suite of incentives for that sector [and] we also have on board the changes to the Electric Light and Power Act. Both have been laid in Parliament and will be debated when Parliament resumes in October as our first order of business, to help the process of creating this new sector…that can cut our importation of fuel oil and through that, can cut the amount of foreign exchange we spend buying it,” he said.

Mr. Sinckler added that the sector would also create a level of energy efficiency, new jobs and fresh areas for investment for the island. “It is a win-win situation for everybody. So we are forging ahead with that,” he stated, adding that the cultural industries area was another new one which would be discussed in Parliament shortly.

So Barbados, like several of its Caribbean neighbours and other countries across the world, has been feeling the effects of the global recession and Government has had to relook and strengthen the systems it had in place to deal with the situation.

Now Government believes it has crafted the correct programme to grow this island’s economy and has started the job of implementation, by rolling out some of the initiatives; then it will move on to tackle the more difficult issues.

Yes, it may appear as if some of the measures introduced in this year’s Budget were tough, but they should be seen as being essential for this country’s survival.

Therefore, let all of us as Barbadians put our hands to the plough and remember that this is our beloved country and we must work through this situation together. (BGIS)

The Minister noted that a number of projects had been identified to bring foreign exchange into the country and grow the economy over the medium to long-term.


Facing The Challenge

BARBADOS ENJOYS SEVERAL ADVANTAGES To hELP IT ovErCoME EConoMIC ProBLEMs

By Dr. Delisle Worrell

Barbados is well placed to address the challenging circumstances our

economy faces. We have achieved a very high standard

of living, the highest among independent Caribbean countries in the Human Development Index, and on par with industrial countries. We rank a respectable 47th of 147 countries in the World Competitiveness Index, and are first among Caribbean countries in the Index. Barbados’ economic policy making arrangements are superior and our institutions are world class. Barbados’ social and political stability are highly regarded internationally, and the country has good physical infrastructure.

how we make policy:The stability of our dollar is foremost in the minds of all Barbadians, and the value of the currency is protected by the adequacy of the Central Bank foreign exchange reserves. Every day the Minister of Finance and top policy makers of the Central Bank and Ministries of Finance and Economic Affairs receive a chart of the foreign exchange reserves, and each month this economic team meets to monitor and discuss the latest developments in the economy and to make adjustments as necessary. The team produces an annual forecast which informs fiscal policy: the budget is designed to match foreign exchange outflows to expected inflows, with a mid-year budget correction, if necessary.

The recent budget was a world-class effort, which few democracies have emulated:A steep decline in our reserves became evident only in May

this year and by the first week of June Cabinet had agreed on the magnitude of the adjustment that would be necessary. A national economic consultation on June 24 secured buy-in from the social partners. This was followed by discussions with all stakeholders and the passage of the August 15 budget, by all accounts fit for purpose, of the right magnitude and with appropriate incentives. For a democratic process, this was a remarkably swift reaction.

The growth strategy:The Barbados economy is fuelled by foreign exchange. We do four things at internationally competitive prices (tourism, international business, rum and green energy) and the foreign exchange we earn and save from these is used to fuel the imports we need for production and consumption. To grow the economy sustainably, we have to grow the foreign exchange earning sectors. Fiscal stimulus is not sustainable, because government doesn’t earn foreign exchange. Growth is led by the private sector, while government provides incentives and facilitation. To increase the profitability of our foreign exchange earning sectors we must improve the productivity of labour and the efficiency of capital, make our products and services superior in every market category, enrich our products (sports, heritage and cultural tourism, for example), do targeted marketing and develop new markets. It is critical that we improve service quality and set our standards at the very highest level. There are many success stories in each of these areas and we should always keep them in mind. We should celebrate these achievements, and use them as inspiration for what still needs to be done.


The fiscal adjustment:The fiscal adjustment is designed to stabilize the economy by matching foreign exchange outflows to inflows, and to slow and eventually eliminate the drain on foreign exchange over the next several months. Reserves are held for the purpose of financing imports in the interim, while the measures take effect. We expect reserves to fall during that period, but we expect that once inflows and outflows are brought into balance, our foreign exchange reserves will return to levels that have been sustained since 2008. Barbados has no problem in servicing government debt. Service costs on the external debt are less than 10% for the foreseeable future, and the net public sector ratio to GDP is a moderate 62%.

Barbadians have every reason to be confident of our future:Barbadians have bested the Caribbean through strength of character, sound decision-making, and investing in ourselves. The quality of our lives reflects our achievement. We have beaten the odds before, and we can do it again; experience has taught us that it is not as difficult as it seems, once you buckle down to the task. Patience, persistence, determination and commitment to excellence will win the day.

There is something that each and every Barbadian can contribute to growth: for entrepreneurs it is the development and promotion of projects to prospective foreign investment partners; for government it is the upgrade of business facilitation; and for workers, the improvement of productivity and the development of the Barbadian reputation for excellence.

Finally, the narrative matters. We must together build our self-confidence, by celebrating our successes, to give us energy for tackling the challenges ahead.

Facing The Challenge

To grow the economy sustainably, we have to grow the foreign exchange earning sectors. Fiscal stimulus is not sustainable, because government doesn’t earn foreign exchange.



Productivity Key

PRODUCTIVITY AT THE HEART OF EConoMICGrowTh

As Government intensifies its efforts to grow this island’s

economy, Barbadians are being reminded that productivity is at the heart of economic growth.

And, Executive Director of The Productivity Council, John

Pilgrim, believes that the productivity of workers in Barbados could be improved. Acknowledging that employees generally liked their jobs and were committed to them, he is of the view, however, that some could show greater dedication.

Mr. Pilgrim said: “But, to some measure that level of improved commitment has to do with managerial productivity. Managers need to manage properly; they need to set objectives and share them with the employees. Managers need to communicate the information and interface with [employees] and empower employees to do better. Managers need to build trust in their organisation and also when it comes to celebrating success and sharing gains that would accrue to the business that needs to be done.”

He is of the opinion that improved productivity would have an impact on the quality of life in the workplace and the standard of living for citizens. Therefore, he believes that public sector productivity is just as important as that of the private sector. “The public sector creates the environment within which the private sector operates. If you have an efficient and effective public sector, it is going to impact private sector productivity, and by extension, the overall GDP…of the country,” he stated.

Productivity is defined as a relationship between what is produced or generated in a business vis-à-vis the level of resources employed.

Government, the unions and the private sector have focused greatly on that issue over the past 20 years and, according to the Executive Director, this has paid dividends, with the country being able to move a couple rungs up the ladder.

He suggested that there was a need to continue creating an environment that was conducive to workers. “We need to educate workers, supervisors, [and] managers…We need to constantly measure how well we are doing. What is measured gets done; if you are not measuring, then the chances are you are missing a lot of things. And, you need to reward workers when you have the measurements in place and you can clearly show that there is an improvement in productivity,” he remarked.

Mr. Pilgrim stressed that productivity was at the heart of this island’s economic growth and said that when people were more productive, they produced at a higher level and that could translate into opportunities for all.

“Improved productivity in organisations stands to create benefits for all stakeholders. In the first instance, for the company that is looking to ensure its competitive position in the industry is maintained, improved productivity means the business is in a position to offer more for less prices. It is in a position to improve its net gains and redirect those gains towards expanding the business, and creating new products and better services for their clientele.

John Pilgrim


Productivity Key

“If a company improves its productivity the workers will gain in the form of better wages…The country stands to benefit from improved productivity because if all the businesses are more productive, it means the level of taxes the Government would obtain would be higher, without having to increase the tax rate. It means that the quality and level of services being offered by Government can be improved and expanded. When the productivity level is low, it means Government is somewhat constrained by what they can do, but if we have a higher level of productivity in the country it means the competitive position improves.”

Mr. Pilgrim added that the companies would be able to export and compete well in other jurisdictions and the country would receive greater foreign exchange.

He acknowledged, however, that there were some people who were not getting job satisfaction and urged them to retrain and improve their skills so that they could pursue available opportunities.

He said: “In an environment of low morale, because you are not getting enrichment, it can impact workers’ interest, commitment, drive and focus and it is important managers pay attention to these things, so the situation does not reach the stage where the productivity level of those employees compromise the gains of the organisation…Employees need to continue developing themselves and management needs to continue paying attention to helping employees to improve their training.”

The Executive Director expressed the view that employers could motivate the workforce by providing non-cash rewards, which he described as inexpensive, but impactful.

He stressed that it was also important for organisations to have monetary reward systems in place for employees. “If the business is more productive, then workers should gain from the higher levels of productivity,” he insisted.

While delivering this year’s Financial Statement and Budgetary Proposals, Minister of Finance and Economic Affairs, Christopher Sinckler, said the sustainability of this island’s economic growth and development over the 2013-2020 period will be assured through this nation’s commitment to productivity, efficiency, competitiveness and service excellence.

There is no doubt about it; increased productivity has been identified as one of this island’s drivers of growth. Therefore, the productivity level of workers, whether in the public or private sectors, is under the microscope. Our resolve must be to work harder and smarter, thus contributing to the growth of this beloved country.

Improved productivity would have an impact on the quality of life in the workplace and the standard ofliving for citizens.


BarBaDos’ EConoMIC PErForManCE AT SEPTEMBER 2013

In spite of concerted efforts to rekindle growth, the Barbados economy again contracted by 0.7% during the first three quarters of 2013, after registering flat growth in 2012.

This outcome reflected underperformance in key economic sectors and reflected the decreases in output of both the traded and non-traded sectors. Inflation was 2.1% at the end July and the average unemployment rate was estimated to be 11.1% for the first half of the year.

According to a Central Bank of Barbados economic performance review, foreign exchange reserves declined to $1 billion, a fall of $447 million since December 2012. The Central Bank noted that reserve levels were however adequate to cover contingencies such as this and that the foreign reserve cover was 13 weeks of imports at the end of September. The main contributing factor to the foreign exchange weakness has been the decline in private foreign investment, which fell from $473 million at September 2012 to $147 million at September this year (see Appendix Table 3). In addition, there were declines in foreign earnings from

Economic review


tourism, other services, sugar, beverages and chemicals. Retained imports rose by 8%, primarily the result of increases in the imports of consumer and some capital goods.

Third quarter government revenues continued to be weak. Revenues are estimated to have been $140 million lower than for the April to September period of 2012. Corporation tax receipts were down $59 million, and collections of VAT and personal income taxes each fell by $35 million. Expenditure was reduced, but by only $23 million, while the fiscal deficit widened by $117 million.

Tourism value-added is estimated to have declined by 2.1%, with long-stay arrivals down 6.2%, partly offset by an approximate increase of 2% in the average length of stay. There were declines in visitor numbers from all major source markets, the UK, the US, Canada and the Caribbean. However, cruise passenger arrivals were up 12.3% to the end of September.

At the end of September, the total number of active entities in the international business and financial services sector was estimated to be 3,990. During this period, new registrations totaled 334, on par with the corresponding figure for the same nine-month period last year.

Output of energy generated from alternative sources is gathering momentum, with approximately 4 megawatts of electricity

currently being generated by solar power, double last year’s level. This level of energy output represents an estimated $3 million in foreign exchange savings so far this year.

The recent performance of the Barbados economy indicates some structural challenges ahead, as the economy struggles to revive growth in the wake of the global crisis. While growth is projected at -0.7% for 2013, the recent roll-out of a renewed growth and development strategy points towards an increase in overall output for 2014 at 1.1%.

This expectation is based on successful strategies to re-engineer the tourism sector through product upgrading and enhanced marketing, and a renewed injection of foreign direct investment. At the same time, it is anticipated that continued fiscal stringency could dampen import demand, thereby easing the pressure on the balance of payments.

Over the short to medium term, the restoration of international reserves has been identified as a key target in returning the economy to a sustainable growth path. Efforts in this regard would be significantly boosted by the continued strengthening of the global economy.

Economic review

This expectation is based on successful strategies to re-engineer the tourism sector through product upgrading and enhanced marketing, and a renewed injection of foreign direct investment.


Barbados is advancing efforts to explore opportunities for trade and investment with Brazil.And Minister of Foreign Affairs and Foreign Trade, Senator

Maxine McClean is satisfied that the September 14-21 Political/Commercial Mission to Brazil has achieved its myriad objectives.

The Mission was intended to: showcase Barbados’ product and services offering; enhance the foreign exchange earning capacity of local businesses, provide local manufacturers with the opportunity to establish business relations; identify possible sources of raw materials for local producers; promote this country as a tourist and business investment destination; facilitate increased market penetration through direct export, joint venture and or franchising, and further strengthen the bilateral relationship with Brazil.

In a post event interview with the Barbados Government Information Service (BGIS), Senator McClean noted that dialogue with ministerial counterparts in Brazil had been realised, while useful meetings had been convened between Barbadians and business persons in Sao Paulo.

While pointing out that meetings which she engaged in with agencies, allowed for “the sharing of our own experiences” and “opportunities to flesh out some possibilities for collaboration”, the Foreign Affairs Minister singled out SEBRAE, the Brazilian Support Service for Micro and Small Business for providing “an understanding of the extent to which the Brazilian Government

has been providing significant support to small and micro enterprise”.

Having taken a tour of SEBRAE’s headquarters in Brasilia, on Monday, September 16, with Analyst Alexandre Guerra De Araujo, she acknowledged the potential for exploring a number of technical cooperation agreements through this organisation.

“It may be possible that some persons from some of the agencies, providing services to micro, small and medium businesses, may come here or [you] can come to Barbados and meet and share with our officials some of what you are doing as well as your successes…I think our objectives are very similar. Our means of doing it may be similar and they may be things we could share,” she opined.

In summing up the achievements on the business side, Senator McClean said: “I think the key objective was to provide an opportunity basically for these entities and these officials from the private sector to have a mechanism by which they could come into the Brazilian market, [which is] a very complex market…understand a lot about the processes by which they could engage other business people and understand something about the regulations and the complexities of a country of this mass.”

As she stressed that Barbadian businesses had the good fortune of utilising resources available through the country’s Embassy, in Brasilia, Ms. McClean said: “Our Ambassador, First Secretary and other staff, even though a small complement, are in a very good

new Market Exploration

MISSIONaCCoMPLIshED

(from left) Barbados High Commissioner in Sao Paulo, Dr. Jorge Nemr, Minister Maxine McClean and Barbados Ambassador to Brazil, Yvette Goddard.

Barbados Ambassador Yvette Goddard sits with Antonio Bessa, (centre) Deputy Director of the Department of Trade and Foreign Affairs at the Federation of Industries of State of Sao Paulo.


Solaris Global’s Vincent McClean (left) chats with Brazil Consultant Jean-Pierre Hendrick.

new Market Exploration

position to facilitate business. And, I would want to encourage persons to make contact with Ambassador Yvette Goddard and her staff to ensure that they can be facilitated.”

The invaluable role of the Honorary Consul in Sao Paulo, Jorge Nemr was also recognised, with Senator McClean pointing out that “he had been working very hard for Barbados even before we had an Embassy and he has pledged to continue to do so”.

The Foreign Trade Minister also noted that participants in the Mission had, themselves, made contacts, whether in agriculture, in terms of sourcing materials for manufacturing or in the cultural services industries, and could also make worthwhile use of these relationships.

Senator McClean was not the only official who deemed the week-long Mission a success. Barbados’ Ambassador to Brazil, Yvette Goddard, having accompanied the Minister to a number of engagements in Brasilia and Sao Paulo, said: “For us at the Embassy it has been a pleasure to finally see this Mission take shape and to have the involvement of all the participants from Barbados.

“From the side of the Brazilian authorities, I can say, ‘Yes,’ that we are very happy with the collaboration that we received in being able to organise the visits in different areas. ‘Yes’, we are very satisfied.”

Acknowledging that there was a role for the Embassy in continuing to develop the types of instruments to further assist Barbados’ efforts, Ms. Goddard said: “There have been a number of discussions by the artistes, cultural people and business persons and in the areas where there are possibilities for agreements of some sort, things that require involvement at a governmental level, certainly, the Embassy will be there to facilitate and we do hope that that interface will be kept [up] because it is very important.”

Ambassador Goddard alluded to agreements signed over the years and stressed that going forward what was required now from “our side” was for Barbados “to put forward some specific areas for very specific cooperation”.“We already have agriculture and health but we have had in education and culture, for which we can also seek to do something more specific and more prioritised…I think that is where we would need to go with the agreements which we have signed,” she stressed.

Minister McClean led the Barbadian delegation which included Permanent Secretary in the Ministry of Foreign Affairs, Charles Burnett; Director of Foreign Trade, Kay Sealy; officials from the Barbados Investment and Development Corporation (BIDC), the National Cultural Foundation (NCF), Banks Holdings Limited, Solaris, Global Energy, WIBISCO, and a team from the Government Information Service. (BGIS)

(from left) BHL’s Ray Chee-A-Tow, BIDC’s Humphrey Broome and WIBISCO’s Adrian Padmore during a meeting with Vinissimo Importing.

The Band ZigE showed some ofBarbados’ musical offerings.


Conservator; Betty Marshall – Jewellery Artisan; Errol Watson – Leather Artisan; Valis Kellman – Tanner; Marva Maynard – Leather Artisan; and Carson Cumberbatch – Leather Artisan.

Training for the jewellery artisans took place in Bogotá where they were exposed to finishing techniques, product design and closures. Those in the leather group travelled to Bucaramanga to be trained by an expert in leather goods manufacture. They also received exposure to tanning.

Technical Cooperation

The Barbados Investment and Development Corporation (BIDC) recently led a delegation of artisans to Colombia as part of an on-going Technical Cooperation Initiative

between Barbados and Colombia aimed at strengthening technical expertise in the cultural industries.

The BIDC’s Business Development Officer, Craft, Ms. Sheena Thorne and Design Adviser, Ms. Stella Hackett led the group of 8 artisans through the week-long mission, intended to upgrade their skills in jewellery making and leather tanning.

Artisans taking part in the July 28 - August 3 mission were Catherine Rocheford – Jewellery Artisan/Designer; Gloria Chung – Jewellery Artisan/Designer; Louise Parris – Metalsmith/

ADVANCING THE CuLTuraL InDusTrIEs

Catherine rochefordCarson Cumberbatch (left) with Instructor.Vallis Kellman (Left) with Instructor.


The graduation hat throwing ceremony.

Marva Maynard at thePress Machine.

Errol Watson at Skivving Machine.

Technical Cooperation

Betty Marshall “appreciated the introduction to working in metals and loved the instructors”

Catherine rocheford

“ impressed with the workspaces; impressed with the attention to detail; instructors were precise, efficient and logical”.

Gloria Chung

“it was a different experience; the tools and workspace were perfect; learned many new different approaches; liked the pace and the precision; loved the spirit and discipline instilled in the students; also appreciated the accommodations, food, planning and overwhelming generosity”

The BIDC representatives were trained in product design processes and got some insight into the National Service of Learning (SENA) training model.

The initiative stems from a proposal put to the Government of Colombia in August last year by the Embassy of Barbados in Caracas and the BIDC and follows a diagnostic visit to Barbados in June this year from a Colombian team comprising officials from the South-South Cooperation Department of the Ministry of External Relations of Colombia, SENA and the Artesanias de Colombia Corporation.

The project is expected to position the creative sector to contribute to Barbados’ national goal of increased exports by strengthening and expanding the technical skills of artisans, jewelers and leather workers here. It should also advance product development among them by exploring more creative uses of local organic materials, enhancing production and finishing techniques.

The creative industries is valued at an estimated US$1.3 trillion globally. Colombia’s outstanding craftsmanship and success in the artisanal sector are amongst the main considerations for targeting their expertise.

Comments from participants:


new sector Development

MAKING ANIMATION

CoMEaLIvE

The BIDC, in collaboration with Canadian animation giant Toon Boom, and the National Council for Science and Technology ( NCST) has just concluded a

6-week Animation Workshop at the Barbados Defence Force Headquarters, Garrison, St. Michael.

Barbados now has not just an increased number of highly skilled animators, but also a cadre of certified trainers, who can in turn enhance the capabilities of others locally and regionally and lead the production of high quality animation from Barbados.

The BIDC’s hosting of this workshop is really a part of our new sector development thrust aimed at encouraging non-traditional export growth. In line with the goal set out in our Corporate Strategic Plan 2013-2016, the BIDC has been actively working to develop a core of innovative and business savvy entrepreneurs; a more resilient and sustainable export sector; and new opportunities for growth in the knowledge and technology driven sector. For this particular industry segment, we want to position Barbados to develop a strong animation sector with the potential to command a meaningful share of the multi-billion dollar global

industry. To quantify the potential for earnings, a .01 percentage share of the animation market, using 2012 figures represents earnings of over $22 million, with a relatively small input of physical infrastructure; but utilizing the intellectual capacity and creativity of our young people.

This suggests that we have to catalyze the growth of the industry where we can effectively compete with our home grown talent. The local animation sector is expanding and there are encouraging signs from existing studios and independent animators who are seeking to formalize the industry. The industry in Barbados comprises companies engaged in the production of a myriad of services including Animation Production, Graphic Design, New Media, Web Animation Production, Multimedia/Interactive Development, Website Development, 3D Computer Animation, Digital/Visual Effects and Flash/Internet Animation. Outputs of the industry include Animated Characters, Animated Web Graphics, Commercials, Music Videos, Interstitials/Logos/Bumpers, Multimedia/New Media, Title Sequences and Websites.


The two leading animation studios, Caribbean Digital Media Centre (CDMC) and West Toonz International are full service animation companies that serve the Barbados market with a view to providing services to the overseas market. These companies tend to secure talent that has gone through government supported Workshops as well as training in graphic arts at the Barbados Community College (BCC). Unfortunately, the pool of talent is not large enough to facilitate a level of production that will ensure these groups can capture outsourced work. They are limited too to two-dimensional works and cannot offer their services at rates competitive to other leading animators internationally.

The global animation industry was estimated at a value of US$222.8 billion in 2012. There is a global trend emerging where international studios are moving to outsource a great amount of their jobs and projects to smaller production and post-production studios in other geographical locations. The main reasoning behind this trend is the opportunity to save on costs of production, while still being able to obtain high quality animation production.

Much of the animation outsourcing jobs are going to countries like India, South Korea and the Philippines. But it is projected that as the animation companies in these countries shift from outsourcing to the development and production of their own content, a gap will be created for outsourcing services that countries like Barbados can seek to fill.

Gaining entry into the global outsourcing animation sector will require additional investment in high quality infrastructure and equipment for our studios. It is our belief that once the country is able to demonstrate its potential in this area through the establishment of more professional firms with improved production capacity, we will be able to attract the attention of global players.

The BIDC therefore took the step to purchase the 42 licenses for the software which will be used in these workshops. Investing in this software makes it possible for further training to be conducted by local educational institutions and the animation studios themselves.

A recent international study has pointed to a lack of trained personnel, due to a lack of publicly regulated training programmes, as a huge void in the animation sector, which has in turn created an inability to attract and retain talent. It is the intention of the BIDC to fill that void. It is our further intention to ensure that Barbados is positioned to capitalize on the potential of the international animation industry to create hundreds of jobs for young hopefuls in Barbados in an economy has been under considerable stress with job opportunities becoming more scarce.

The BIDC will work with strategic partners to achieve our objectives. The Barbados Community College (BCC), the Barbados Institute of Management and Productivity (BIMAP) and the Errol Barrow Centre for Creative Imagination (EBCCI) have indicated to the BIDC that they are eager to make animation a crucial part of their curriculum because they recognise its value in job creation and economic development and provides opportunities for their graduates.

The production of quality animation clips is used not only in traditional entertainment such as motion picture and animated films, but also within medical and health care campaigns and advertising for TV and Web commercials. Students in mainstream school curricula are even experiencing animation more commonly in subjects such as Math, Science and Geography. Animation can be used to produce simulations for the training of medical students, engineers, pilots and architects to name a few. Thus reducing the time and costs presently associated with such training.

Toon Boom has already been instrumental in improving the capacity of local talented people to produce two dimensional animation. There however, remains the need for training in three dimensional productions. There is much work to be done and we’re only just opening the doorway to possibilities!

new sector Development

Barbados now has not just an increased number of highly skilled animators, but also a cadre of certified trainers, who can in turn enhance the capabilities of others locally and regionally and lead the production of high quality animation from Barbados.


at the ports to detect and respond to food safety problems, importers would, for the first time, be held accountable for verifying, in a manner transparent to the FDA, that the food they import is safe.”

FSMA also directs the FDA to establish a program for the Accreditation of Third-Party Auditors for imported food. Under this proposed rule, the FDA would recognize accreditation bodies based on certain criteria such as competency and impartiality. The accreditation bodies, which could be foreign government agencies or private companies, would in turn accredit third-party auditors to audit and issue certifications for foreign food facilities and food, under certain circumstances. Importers will not generally be required to obtain certifications, but certifications may be used by the FDA to determine whether to admit certain imported food that poses a safety risk into the U.S.

The FSVP proposed rule and the third-party accreditation proposed rule are available for public comment for the next 120 days. The two proposed rules will help the FDA create an integrated import oversight system that works efficiently to improve food safety and protect the public health.

These proposals work in concert with the proposed rules released in January 2013, for produce

safety and preventive controls in facilities that produce human food. Those proposed rules are open for comment until September 16, 2013, but the FDA intends to grant a 60-day final extension of the comment period to allow commenters an opportunity to

consider the interrelationships between the January proposals and the two proposals just announced.

source: http://www.ift.org/food-technology/newsletters/ift-weekly newsletter/2013/july/073113.aspx#headlines1

new standards

On July 26, the U.S. Food and Drug Administration (FDA) issued two proposed rules as part of the Food Safety Modernization Act (FSMA) aimed at helping to ensure

that imported food meets the same safety standards as food produced in the United States.

Under the proposed rules, importers would be accountable for verifying that their foreign suppliers are implementing modern, prevention-oriented food safety practices, and achieving the same level of food safety as domestic growers and processors. The FDA is also proposing rules to strengthen the quality, objectivity, and transparency of foreign food safety audits on which many food companies and importers currently rely to help manage the safety of their global food supply chains.

The new measures respond to the challenges of food safety in today’s global food system. Imported food comes into the U.S. from about 150 different countries and accounts for about 15% of the U.S. food supply, including about 50% of the fresh fruits and 20% of the fresh vegetables consumed by Americans.

Under the proposed regulations for Foreign Supplier Verification Programs (FSVP), U.S. importers would, for the first time, have a clearly defined responsibility to verify that their suppliers produce food to meet U.S. food safety requirements. In general, importers would be required to have a plan for imported food, including identifying hazards that are reasonably likely to occur. Importers would be required to conduct activities that provide adequate assurances that these identified hazards are being adequately controlled.

“FSMA provides the FDA with a modern tool kit that shifts the paradigm for imports, as well as domestic foods, from a strategy of reaction to one of systematic prevention,” said Michael R. Taylor, Deputy Commissioner for Foods and Veterinary Medicine. “Rather than relying primarily on FDA investigators

U.S. FDA TAKES STEP TO HELP ENSURE ThE saFETy oF IMPorTED FooD


new standards

The BNSI has approved 26 new standards for publication.

A public notice was recently given and the Institute is now awaiting the publication of the Official Gazette of Barbados which notifies that these standards are now Barbados National Standards.

The 26 standards to be published are in the following fields:• renewable energy• energy labelling• appliance safety• building standards• ergonomics• tourism• food manufacturing and processing• health• road traffic safety

• lighting technologies.

BNSI Chief Technical Officer, Fabian Scott, said “We are truly excited about these 26 standards which you have identified will address issues within industry and society. Our next batch of standards to be published are equally as targeted as we seek to improve our quality and cost competitiveness, protect consumers and allow for sustainable and harmonious development of the sectors of the economy.”

For more information on any of the above please contact the BNSI at Tel: 246 426 3870; Fax: +1 246 436 1495; Website: www.bnsi.bb

NEW STANDARDS In ThE worKs


Ecoscope

A HeAltHy AtmospHere,the FutureWe Want

It is indeed a privilege to address you as Minister of Environment and Drainage as we celebrate International Day for the Preservation of the

Ozone Layer. International Ozone Day commemorates the signing of the Montreal Protocol on Substances that Deplete the Ozone Layer on September 16, 1987 and this year we celebrate under the theme ‘A Healthy Atmosphere, the Future We Want’.

The Ozone Layer protects the earth from harmful Ultra Violet (UV) rays from the sun and without it, the earth would be exposed to seventy (70) times more intense UV radiation than we experience today; thus, placing virtually all life on earth at risk of extinction. Since the hole in the ozone layer was discovered in 1985, countries of the world including Barbados have been working tirelessly to phase out substances that deplete the ozone layer also known as Ozone Depleting Substances (ODS).

This year’s theme therefore serves an important reminder of what we as a global community are striving toward not only for our own sakes but for the sakes of our children.

January 1, 2013 began a new phase in Barbados’ transition away from ODS towards non ODS, climate friendly, energy efficient alternatives with the establishment of the national baseline for consumption of Hydrochlorofluorocarbons (HCFCs). HCFCs are substances which are used primarily

in the Refrigeration and Air Conditioning (RAC) Sector and are currently included under the restricted import/export list under the Customs (List of Prohibited and Restricted Imports and Exports) Order 2009 and the 2010 Amendment. Further, the HCFC Quota System is in place and is administered in line with the legislation and in keeping with our commitments as a Party to the Montreal Protocol.

The Legislation and the Quota System were instituted to act in concert to effectively monitor and manage trade in ODS. It is anticipated that with the requisite monitoring and enforcement regimes in place; coupled with the sustained support and commitment of the RAC sector; and the vigilance of the consumer that Barbados will effect a transition away from ODS.

The Ministry of Environment and Drainage is poised to commence implementation of its HCFC Phase out Management Plan (HPMP) which is the tool that will be used to describe the programme of national activities to effect HCFC phase out, and the transition toward non ODS alternatives. The HPMP will focus primarily on the key areas of Policy and Legislation, Capacity building and Public Awareness which are considered to be critical to meeting national phase out targets. Through this approach it is anticipated that:

• There will be the development and enactment of further supporting legislation necessary to continue to effect HCFC phase out

• There will be a reduction in the consumption of and demand for HCFCs

• RAC technicians, Enforcement and Licensing Officers and

Message from Minister of Environment and Drainage, Dr. Dennis Lowe, in observation of International Day for the Preservation of the Ozone Layer, celebrated every year on September 16.

Dr. Dennis Lowe


Ecoscope

other stakeholders will be adequately equipped to handle the phase out and management of HCFCs and to deal with the influx of the new refrigerant technologies that will replace HCFCs

• Awareness about the availability and application of alternative refrigerant technologies that will replace HCFC will be increased recovery of the ozone layer is occurring slowly because of the length of time it takes for ODS to break down in the stratosphere but science projects that once countries remain on track with their respective phase out efforts, then complete recovery can be expected by 2065.

In our quest to control HCFCs, we are mindful of the current lack of availability of non-ODS, climate friendly and energy efficient alternatives for all applications. As a result, Hydrofluorocarbons (HFCs) have emerged and is gaining increasing market share in the RAC sector.

However, these gases though highly effective as refrigerants are powerful greenhouse gases which if released into the atmosphere contribute significantly to climate change. As a Small Island Developing States (SIDS) as well as a Low

Lying Coastal State climate change is one of our largest concerns as it will negatively impact on our environment, economy and health. Although we are currently technology takers, we must now seek to become more innovative and vigilant in identifying non ODS alternatives with added environmental benefits where possible that can be used within various applications in our country.

Therefore, the call goes out to all stakeholders to continue to take their respective responsibilities seriously as we continue to work with our international partners the United Nations Environment Programme (UNEP) and the United Nations Development Programme (UNDP) towards a healthy atmosphere for the future.

Since the hole in the ozone layer was discovered in 1985, countries of the world including Barbados have been working tirelessly to phase out substances that deplete the ozone layer also known as Ozone Depleting Substances (ODS).



news to note

hanDBooK ON PRODUCTIVITY LaunChED

Barbadians now have a new ‘tool’ to help them understand productivity.

The Productivity Council recently launched a handbook – Getting Everyone to Understand Productivity, during a reception at Baobab Tower, Warrens, St. Michael.

And, Parliamentary Secretary in the Ministry of Economic Affairs, Senator Jepter Ince, has given the assurance that Government is committed to improving productivity, which spurs national growth and encourages economic recovery.

Senator Ince told his audience: “Barbados continues to embrace the challenges it faces with regard to driving competitiveness and productivity issues derived from regional integration, eroding trade preferences and increasing global trade liberalisation, to name a few.

“However, as a Government, we have said to the people of Barbados that our intent is not only to become a green economy, but one that embraces innovation and promotes productivity and competitiveness in all sectors. Thus, a national focus on productivity is a critical success factor for sustainability to be achieved and maintained.”

Acknowledging that the current economic climate was challenging, the Parliamentary Secretary cited an improvement in labour productivity, productive capacity and the performance of exports as some of the solutions being considered.

He indicated that these efforts would require focused re-strategising, investment, energising of domestic activity, and the implementation of calculated initiatives to manage Barbados’ social, economic and financial challenges effectively.

He stressed that Government’s policies to develop entrepreneurship must encourage and reward innovation and creativity as a means of restructuring the economy to new paths of success. He warned, however, that productivity at the level of the organisation must be pursued continually and rigorously managed if it is to reap value-for-money for its infrastructure and human capital investment.

“These times require us to be unconventional about the path we chart as individuals, as businesses, as a Government and as a society moving forward.

One of our greatest assets is that of a highly educated pool of human resources. From this pool, we have a purposeful platform from which we can begin our efforts to improve our competitiveness prospects,” Senator Ince insisted.

Getting Everyone to Understand Productivity


Ecoscope

“Clustergates”, a newly form public-private initiative, which could benefit the wider Caribbean, was showcased by Martinique at a major shipping meeting held in Panama.

The newly formed Cluster GAT Caraïbes Logistique et Transports or GAT Caribbean, a group of transportation companies and public sector organizations based in Martinique, participated for the first time at the 43rd Annual General Meeting of the Caribbean Shipping Association’s (CSA) Conference and Exhibition in Panama City, Panama held October 7-9, 2013.

GAT Caribbean, whose mission focuses not just on Martinique, but also on the greater Caribbean and the Americas, is encouraging regional public and private sector members to join the cluster to create, design and share future solutions that benefit the sustainable development of the transport and logistics industry in the region.

This regional network hopes to boost growth by capitalizing on the increased passenger and freight traffic resulting from the major expansion of the Panama Canal in 2015.

In conjunction with the modernized Port of Martinique, one of the biggest natural harbors in the region, and with the support of Martinique’s Regional Council, GAT Caribbean is preparing the French Overseas Department to become a major Caribbean hub and “Gateway to Europe in the Americas” in the new post-Panamax era.

With support of the Regional Council, which has a keen interest on integrating Martinique with the wider Caribbean, GAT Caribbean is hoping to become a major player in global transport and logistics negotiations that directly affect the globalization of the regional economy.

One of the tools to be developed by GAT Caribbean is “CLUSTERGATES”, a marketplace grouping of both freight and passengers that will match demand and supply and optimize the flux of increased traffic into the greater Caribbean and the Americas. The cluster’s regional network will further create a

dynamic exchange between bigger clusters across the greater Caribbean, the Americas, France and Europe. More than 300 shipping executives from across the Americas participated in the CSA meeting in Panama City.

About Cluster GAT Caraïbes Logistique & TransportsThe Cluster Groupement Antillais de Transport Caraïbes Logistique & Transport or GAT Caribbean was created in December 2012 at the initiative of private sector companies of the transportation and logistics sector in Martinique, and then other private and public sector companies and organizations and the Regional Council of Martinique.

GAT Caribbean member companies fully benefit from resources and innovative solutions that result from sector studies and research projects in connection with organizations involved in training and research on behalf of the cluster.

All cluster members are considered an essential link in the value chain, and therefore help design, model and disseminate solutions for transport and logistics, sustainable development, not only for Martinique but also to the benefit of the Caribbean region.

Annual objectives include a freight exchange solution for the Caribbean (in the Americas and to Europe), the development of ICT solutions for transport and logistics, business tools to improve logistics performance, and the use of “intermodality” for both freight and passenger transport.

About the Grand Port Maritime de la MartiniqueThe Port of Martinique is one of the biggest natural harbors in the region, with a draft of up to 17 meters (56 feet) deep, which with its modern infrastructure has all the potential to become a leading regional hub and gateway to Europe in the Americas. Through support of the Regional Council and a major investment of 70 million Euros (approximately US$95 million), the Port of Martinique is presently being renovated and modernized to handle post-Panamax vessels of up to 13,000 TEUs.

NEW MARTINIQUE “CLusTErGaTEs” unvEILInG For PanaMa shIPPInG MEET


Cultural Etiquette

Modern business is global and demands people travel to foreign countries and mix with foreign clients, colleagues or customers. Each one of those cultures will also have their own etiquette rules, many of them unwritten. When two or more different cultures mix, it is easy for small etiquette mistakes to be made that could have negative consequences. Not understanding the etiquette of another culture can and does lead to soured

relationships, lost deals and in the end poor business results. The Barbados Business Catalyst explains the etiquette behind business dealings with Colombia.

when in….Colombia The Cultural Etiquette Critical for Success

GreetingsMen shake hands with direct eye contact. While shaking hands, use the appropriate greeting for the time of day: “buenos dias” (good day), “buenas tardes” (good afternoon), or “buenas noches” (good evening/night). Women often grasp forearms rather than shaking hands. Once a friendship has developed, greetings become warmer and a lot more hands on - men will embrace and pat each other on the shoulder (known as an “abrazo”) and women kiss once on the right cheek. Most Colombians have both a maternal and paternal surname and will use both. The father’s surname is listed first and is the one used in conversation. Always refer to people by the appropriate honorific title and their surname. It is courteous to shake hands both upon meeting and departing. Men should wait for a woman to extend her hand. Greetings should take some time - ensure you engage in some small talk, i.e. ask about family, health and business. Eye contact is viewed positively. Wait for the other party to initiate a change to first names.

CommunicationThe official language of Colombia is Spanish and spoken by around 43 million people. In addition there are approximately 500,000 speakers of American Indian languages. Colombians are termed as ‘indirect communicators’ - this means there is more information within body language and context rather than the words, i.e. if you ask someone to do something and they reply ‘I will have to see’, it would be up to you to read between the lines and realise that they cannot do it. The reason for this way of communicating it to protect relationships and face. People that are used to speaking directly and openly must tame their communication style as it could cause offense. Although they can be indirect, Colombians can also become very animated. This should not be mistaken for aggression. Avoid confrontation at all cost. If someone has made a mistake do not expose it publicly as this will lead to a loss of face and a ruined relationship.

Business attireColombians pay a lot of attention to appearance and clothing. Dress conservatively and be well groomed. Shoes are the first thing people notice. Colombians do not wear tennis shoes unless they are playing tennis, jogging, etc. For business, men should wear dark suits, white shirts and ties in the cities. In warmer areas, dress is less formal. Women should wear dresses and suits. Wear comfortable cotton in warmer areas.

Business CardsIt is a good idea to try and have one side of your business card translated into Spanish. Include any university degrees or qualifications as this is valued. Treat business cards with respect. Dining EtiquetteDining etiquette is quite formal in Colombia as they tend to give importance to decorum and presentation. Time and punctuality are

not stressed. Colombians will typically arrive up to thirty minutes late for social engagements. A 10:00 p.m. party will often begin a half-hour to one hour late. Working breakfasts are common, and business lunches and dinners are popular. Plan on spending at least two or three hours at either. If you are ever unsure the general rule is “observe and follow”. Wait to be seated by the host. Hands should be kept visible when eating. Do not rest elbows on the table. The host will say “buen provecho” (enjoy or have a good meal) as an invitation to start eating. It is polite to try everything you are given. Unusually all food is eaten with utensils - even fruit is cut into pieces with a knife and fork. It is considered polite to leave a small amount of food on your plate when you have finished eating. Do not use a toothpick at the table.

Business MeetingsColombians are normally punctual in business, although

they may be up to a half-hour late. The best policy for foreign businesspeople is to be punctual, but

prepared to wait. Don’t get angry if a 12:00 p.m. appointment doesn’t begin until 12:30

p.m. Excuse yourself if you are late. “In an hour or two” may mean tomorrow

or next week. “Tomorrow” seldom means tomorrow and may mean next week. Don’t get offended if someone says they will phone you tomorrow and then calls a week later. Colombians want to know you personally before they do business with you. You must develop a relationship with your counterparts before they will consider you trustworthy. Always

allow your Colombian counterparts to bring up the subject of business.

Be aware that this may take awhile. Meetings may be slow, with quiet,

deliberate discussions. Although there may be an agenda, meetings do not always follow

a linear path. An agenda will serve as a starting point and after that issues are addressed. Time is

not an issue in meetings - they will last as long as they need to last. Do not try and rush proceedings.Follow up a meeting by sending a letter summarizing the main points and what was agreed upon. It may take several trips to complete a business transaction. Colombians prefer to do business in person -- one can only get “so far” by phone and fax. Maintain eye contact during conversations, or you may leave a bad impression. Contracts may be long and detailed. Put the key aspects of agreed-upon points in writing. Third-party contacts are vital to business success. You should hire a local distributor, representative, salesperson and/or lawyer.

GiftsGifts are given for birthdays and Christmas or the Epiphany (January 6th). In Colombia a girl’s 15th birthday is considered an important milestone. When going to a Colombian’s home, bring fruit, a potted plant, or quality chocolates for the hostess. Flowers should be sent in advance. Do not give lilies or marigolds as they are used at funerals. Roses are liked. If you are going to a girls 15th birthday, gold is the usual gift. Imported alcohol is very expensive and makes excellent gifts. Wrapped gifts are not opened when received.


The Cultural Etiquette Critical for Success

Trading Developments

Barbados will once again be home to an embassy for the Argentine Republic and Prime Minister Freundel Stuart has welcomed the news.

Argentina’s Ambassador to Barbados, Marcelo Salviolo, made this disclosure recently when he paid a farewell call on Mr. Stuart at Government Headquarters.

The Prime Minister told the envoy that Barbados was looking forward to having a resident ambassador again. He added that

this country valued its relationship with Argentina and wanted to make it more productive, since there were a number of issues which both countries could explore.

Mr. Salviolo said Argentina was increasing its presence in the English-speaking Caribbean and his country was looking forward to working more closely with the region.

Barbados established diplomatic relations with Argentina in 1968.

Saudi Arabia’s Permanent Representative to the United Nations, Abdallah Y Al-Mouallimi is hoping to forge greater ties with Barbados and the region as part of his country’s thrust towards exploring new business opportunities.

He expressed this hope, during a courtesy call on Minister of Foreign Affairs and Foreign Trade, Senator Maxine McClean, at the Ministry on Culloden Road.

During the meeting, Mr. Abdallah said the dialogue would be used as “the starting point of cooperation and opening new doors of communication”.

The Saudi official also used the occasion to give Minister McClean an update on his country’s candidatures for the Human Rights Council and the United Nations Security Council.

In response, the Foreign Minister said at the bilateral level, the conclusion of a Double Taxation Treaty was “an excellent basis on which we could work given our focus on international business and international financial services”.

Saudia Arabia and Barbados established diplomatic ties on November 12, 2007.

The appointment of an Honorary Consul of Barbados to Russia, the use of a Russian vessel to carry out seismic scientific estimation and training opportunities were among the areas discussed when Russian Ambassador to Barbados, Nikolay Smirnov, paid a courtesy call on Minister of Foreign Affairs and Foreign Trade, Senator Maxine McClean.

During the call at the Ministry, the Ambassador expressed the view that Barbados’ infrastructure and pristine beaches make the island an excellent destination for Russian tourists.

The diplomat also underscored the importance of appointing an Honorary Counsul of Barbados in Russia as an impetus to help strengthen the existing bilateral relationship.

In turn, Senator McClean renewed Barbados’ interest in pursuing a Double Taxation Agreement with Russia given the structure of their economy and the importance of international business to the island’s economy.

The Foreign Minister pledged to work with Russia on areas of cooperation that would be beneficial to both countries. Barbados and Russia established diplomatic ties on January 29, 1993.

Argentina To Set Up Embassy In Barbados

Barbados and Russiato Explore Closer Ties

Barbados and Saudi Arabia Discuss New Business Opportunities


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3082

5

7874

7,69

6,68

25,

462,

091

9,14

5

15,0

007,

000

-200

%-2

.54

DISTRIBUTION OF INVESTMENT IN MANUFACTURING SECTOR JANUARY-JUNE 2012/2013

2,69

6,79

6

-79.

09%

0%0%

-60.

18%

-83.

71%

-86.

87%

-21.

17%

-53.

33%

-40.

30%

100.

0%

2,62

6,51

8

69,6

45

3,41

9,81

7

2,04

1,70

0

238,

574

38,8

59

371,

050

292.

491

795,

220

316,

677

0 0 0 0

71,2

5014

,900

2.61

%

2012 2013

Food, Beverage

& Tobacco

Textiles, Apparel & Leather

Paper Products, Print &

Publishing

Wood, Wooden

Products & Fittings

Chemicals &

Chemical Products

Plastic Products

Non-Metalllic Mineral

Products

Other Manufacturing

Fabricated Metal

Products

Precision Instruments

Electronic Components

& Devices

Handicraft

Food, Beverage

& Tobacco

Textiles, Apparel & Leather

Paper Products, Print &

Publishing

Wood, Wooden

Products & Fittings

Chemicals &

Chemical Products

Plastic Products

Non-Metalllic Mineral

Products

Other Manufacturing

Fabricated Metal

Products

Precision Instruments

Electronic Components

& Devices

Handicraft

-1%

-0.2

0 11

3,97

71,

200

*

**

*

*

** **

*

*

Industry By numbers


DOMESTIC EXPORTS JANUARY - JUNE 2012 / 2013 2012 BDS$ 2013BDS$

45,348,190 43,033,028

22,276,503 782,176

8,024,2447,739,202

9,623,29910,361,863

3,526,327 4,098,404 9,432,898

5,250,513

7,431,3348,094,084

422,914184,970

1,053,296

1,697,87510,546,196

19,916,636

-25.27 -18.22

12,418,91413,563,753

552,621215,5424,447,025

5,931,448 3,854,748

2,350,7882,013,056

2,210,6051,749,854

Source: Barbados Statistical Service

323,297,087264,385,858

217,249,739162,356,869

11,393,303 11,842,488

60,350,79523,225,278

-5.11

-96.49

-3.55

7.67

-44.3416.22

8.92

-56.26

88.8561.20

-11.95 9.22

10.33 -61.00

-35.01-61.52

-14.37

3.94

-20.84

4,030,818

325,246286,374

Industry By numbers

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