Ensuring Our Voices are Heard

 

Port efficiency concerns and trade agreement imbalances. Government bureaucracy and policy inadequacies. These are some of the major challenges facing local manufacturers, and that's on what new Trinidad and Tobago Manufacturers' Association (TTMA) chief executive Ramesh Ramdeen plans to focus his energies.

"We are going to continue to lobby the government. We have some issues we want to prioritise to be concluded by the end of this year. Under my stewardship the TTMA will be more proactive. We will act as the conduit between manufacturing and government and ensure our voices are heard. We will create a framework that is sustainable. We recognise the government's drive to move towards more diversification and we will do our part to add to the country's GDP, productivity and employment. We will create an environment sustainable for all," he told the Business Express last Tuesday in an interview at the TTMA's Barataria offices.

Ramdeen was installed as TTMA CEO at the beginning of the year. He replaced Natasha Mustapha-Scott who had been CEO for the past decade.

Ramdeen says: "There are several pieces of legislation for example that we would like to see tabled before the end of the year: The Beverage Container Bill; the Procurement Bill with considerations for local content. We also want to see the inefficiencies at Government agencies like Customs and Excise; Chemistry, Food and Drug; the Bureau of Standards; and the Port at Port of Spain corrected. A major issue for our members is outstanding VAT rebates—manufacturers pay VAT upfront and should get their rebates back after 90 days. We have members waiting for rebates since 2008—it creates a serious cash flow problem for them."

"In order to address and enhance inefficiencies we are looking to the government to correct these imbalances. Once we get the regulatory bodies working the way they should it will enhance productivity, and the level playing field for operating will materialise and manufacturers will continue to exist in an environment that is sustainable for all," he continued.

Ramdeen is well-suited to lead the charge on mediating between government and the association's members, having been the TTMA's trade specialist for the last ten years; prior to that he worked at the Ministry of Trade in the same capacity, and also as an economist focusing on Caricom issues.

"Here at the TTMA I shape policies; at the ministry I helped create those policies," he says.

As CEO, Ramdeen wants to promote the use of local content in government projects. But he recognises that to have government buy-in, the sector needs to show that it can handle the task.

"We are very confident that the value added of local manufacturers is of very high standard, comparable to world class; there is no reason why we can't have that same kind of leverage on the domestic market. We have come a long way in terms of increasing our worth in the region— when you compare our products with the regional products we are on par and surpass all our regional producers regarding quality, standards and efficiency. The TTMA continues to ask for a level playing field – remove all the obstacles to trade. We feel that any goods coming into our market, once there is a level playing field existing, we can out produce, out manoeuvre, our output can be as efficient or more efficient than our competitors," he said.

In terms of looking for other markets into which manufacturers can expand, Ramdeen noted the several trade agreements government has signed with various jurisdictions. But:

"Sometimes when you negotiate market access, it does not translate to access to markets. Negotiating these agreements does not necessarily mean you are addressing the market supply constraints; you need to create an environment that allows manufacturers to penetrate a market," he said.

For example, Ramdeen notes the agreement Trinidad and Tobago has with Costa Rica. Local goods can enter that market with no tariff barrier. But non-tariff barriers like registration fees still prove to be a bureaucratic hassle. Costa Rica, he noted, does not have that reciprocal problem when its manufacturers' goods need to enter the Trinidad and Tobago market.

So far, Ramdeen acknowledges that the Trade Ministry has been "very accommodative" of the association's suggestions, but would like to see the private sector partner more with the government to solve deficiencies in the trade system.

"The private sector needs to step up to the plate as well. We are a key stakeholder in the process. We can't just depend on the government – they negotiate the agreements but it is the private sector that trades. So we need to have a collaborative effort and even with labour. Far too long we have been ranking too low in the Global Competitive Index. We can't just have the trade unions asking for increases in wages without increasing production. Government, business and labour all need to come together to increase efficiency in the country," he said.

Ramdeen is optimistic about the trajectory of the sector in the short term.

"The manufacturing sector has held its ground. There may not have been much growth in the last three to five years but you haven't seen any losses. As we move forward the sector will come out stronger. We need the injection from the government to stimulate the economy. We anticipate for the next two years of this regime we will see a little more spending by the government and the private sector will follow," he said.

 

 

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Date Posted

January 23 2013