MTI ColumnPUBLISHED IN MAY 2005 | |
A STRONG FUTURE AHEAD FOR T&T'S PRINTING AND PACKAGING INDUSTRYTRINIDAD & TOBAGO LEADS CARICOM and the wider Caribbean in overall competitiveness for printed products, as well as package fabrication and use. his has been accomplished through intra-regional exports, which have resulted in increased market share over the years. In addition, successful penetration of niche markets outside of the region has also contributed to the expansion of this country's competitiveness in the printing and packaging business. A serious contributor to the economy Since 1999, Trinidad & Tobago's Printing and Packaging Industry (PPI) has contributed 3.0% annually to the Gross Domestic Product (GDP). Comprising roughly 163 established firms, the industry includes printers and producers of both paper and plastic packaging products, and according to figures from 2002-2003, provides employment to some 4,700 persons. The PPI has seen consistent growth over the past few years. Over the period 2002-2003, the industry exported over half a billion TT-Dollars worth of products, compared with just TT$0.375Bn worth in 2000-2001. It is because of this growth potential that the Printing and Packaging Industry has been singled out for special support by Government, and is included among the seven industries targeted for development under the Prime Minister's Standing Committee on Business Development (SCBD). The SCBD was established by Government to facilitate the growth and expansion of business activity in the Non-energy Sector, as well as develop a suitable climate for investment in this country, using a Public/Private Sector partnership approach. Support for the PPI In January 2005, the Ministry of Trade and Industry hosted a special stakeholders consultation for all the players in the PPI, to get their views on a proposed Strategic Action Plan for the Printing and Packaging Industry, which was prepared by the PPI Development Team. Apart from the consultation in January, the Ministry of Trade and Industry also solicited comments on the Draft Strategic Action Plan from a wide cross-section of stakeholders, with the objective of obtaining buy-in to the Plan. Prior to developing the Plan, the Industry Team conducted a comprehensive, diagnostic assessment of the Printing Packaging Industry, which included a SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats). The Plan has sought to address most, if not all of the issues that industry players identified during the assessment. Challenges facing the PPI Among the main issues confronting the PPI, both locally and internationally market have been low growth rates, increased substitution, globalisation and changing market needs. Substitution of materials has resulted in an erosion of the market for that particular industry, namely, substituting glass for plastic. Globalisation has caused an intensified rationalization of plants through mergers, acquisitions and consolidation. Furthermore, the high cost of capital expenditure required to update technology can be a challenge for most firms. In light of these issues, traditional growth strategies have become ineffective as they lead to an erosion of economic value. Enhancing our competitiveness through cooperation Any improvement and growth in the local Printing and Packaging Industry will depend on a serious commitment on the part of stakeholders to ensure that the industry can realise its full potential. The Industry Team believes there are three main ways to enhance the competitiveness of Trinidad & Tobago's Printing and Packaging Industry: Strategic Alliances; a Competitiveness Programme; and effective Market Research and Product Development, all of which are critical to ensuring the PPI's sustainability. Based on their analysis of the PPI, the Industry Team is of the view that Strategic Alliances would have a tremendous and positive impact on the local printing and packaging landscape. The Team recommends the formation of a cluster of industries that would work towards common goals, and establish linkages and working alliances to bring about cooperation, in order to improve their collective competitiveness. A crucial factor here is to develop an international image for the Trinidad & Tobago Printing and Packaging Industry. PPI stakeholders and industry players are being encouraged to consider establishing a body to promote their interests and those of the industry as a whole, with a view to achieving the vision and goals of the industry, which they themselves would need to identify. The rationale is that the T&T industry needs to see itself as an international player, and work towards competing effectively against its international competitors. Other practical recommendations include the development and maintenance of a PPI Cluster Website for dissemination and access to information, as well as the development and maintenance of a PPI company database for industry statistics. ? ARTICLE 8 PUBLISHED IN MAY 2005 WE CAN STILL HAVE A FUTURE IN FISHIT EMPLOYS AS MANY AS 6,000 PEOPLE… It represents roughly nine percent of the Agriculture Sector's contribution to the country's Gross Domestic Product (GDP)… It earns some TT$62 million a year… The Fish and Fish Processing Industry provides our rural, coastal communities with their main source of employment, not to mention supplying our nation's protein requirements and food security needs. It has been a part of our economic landscape since the colonial era, and is likely to continue contributing to national development for some time in the future. But in the face of regional and global economic and environmental changes, is the Fish and Fish Processing Industry of Trinidad & Tobago an industry with a future? Can it be developed even further and made sustainable and profitable over the next few years? Working towards the Fish Industry's future Over the past year, members of the Fish and Fish Processing Industry Team (FFIT) have been working assiduously, towards resolving these issues. The FFIT is one of seven industry development teams operating under the ambit of the Prime Minister's Standing Committee on Business Development. Like the other industry teams, the FFIT was given a mandate to draft a Strategic Plan for the long-term development of its industry. The Industry Team is optimistic about the continued viability of Trinidad & Tobago's fish industry, notwithstanding the range of competing interests represented, and the complexity of issues inherent in the industry. The Challenges This country continues to have a vibrant and growing fish-processing sector, a thriving game fishing sector and a relatively untapped offshore fish resource. Together, these factors paint a picture of new opportunities through which the industry can be developed in the near future. But there are a few challenges that must be met head-on, before this vision of prosperity can be realised. One of the most important facing the industry is the poor state of the inshore fish resource, which is heavily over-exploited. Linked to this is an outmoded, legislative and regulatory framework, to manage and develop the industry. Another issue is inadequate infrastructure and onshore sites for fishermen to land and manage their operations. Also, the industry continues to face the challenge of meeting new food safety requirements in the handling of fish, from the ocean to the grocery shelf. Of major concern is the reality that the fish industry is heavily fragmented, in terms of stakeholder representation; stakeholders range from the single fisherman working his nets, to the big trawlers and industrial processors. This makes it complicated when attempting to effectively address the issues of all stakeholders as effectively as possible, not to mention having proper representation of industry interests, and adopting a collaborative approach to the management of the industry's resources. A critical issue, as well, includes the limited social policies developed for the coastal communities who are among stakeholders of the fishing industry. This is particularly important to help provide alternative - or, new - job opportunities for fishing communities, as well as, ensuring a more educated well-trained work force. Elements of the Plan After identifying the challenges facing the local fishing industry, the first step the Industry Team took when developing the Strategic Plan, was to look at the best practices utilised by successful fishing industries throughout the world. The Team learnt that several elements are crucial to developing a healthy fishing industry: § A sustainable fisheries resources § An economically competitive industry § A Rural/ Coastal Development Agenda § An integrated approach to Coastal and Marine Areas Management i.e. developing a holistic approach to the development of the marine environment. § An inclusive or collaborative approach to Management of the Fisheries Sector § A proper stakeholder representation and sustained government support for the sector The FFIT envisions a modern, profitable, sustainable and environmentally sensitive, local Fish and Fish Processing industry. It is a vision which can only be realised with the full cooperation of all industry stakeholders - public and private sector - and which can be built upon the attainment of four key strategic objectives.
Making it happen T he Team is suggesting the establishment of a Fish and Fish Processing Industry Secretariat to oversee not only the implementation of proposed projects, but also the development of business within the industry. One of the first projects that must be tackled is creating an integrated coastal management policy for Trinidad & Tobago. This would help determine the best coastal areas to be allocated for fishing activity, as well as which areas are better suited to alternative coastal marine activities. The Team advocates better training and support for fishermen, not only in managing business operations, but also to provide new skills as an alternative to fishing, if necessary. Security issues are also critical. The reality is that many of our fishermen put their lives and personal property in danger every time they go out to make a living. Finally, the FFIT maintains that a unified fisher folk association, to represent effectively the interests and secure the future of local fishermen an organisation, would not only ensure that fishermen's and related industry interests are represented, but also real industry collaboration and cooperation, whether for resource management or meeting international food safety standards. ? ARTICLE 9 PUBLISHED IN MAY 2005 SAFEGUARDS: PROTECTING INDUSTRY, PRESERVING JOBS…OVER THE PAST FIVE YEARS, the Trinidad & Tobago economy has been experiencing something of a boom. Trade is up and quite brisk: imports are on the rise; and non-energy oil exports have been increasing, along with their attendant foreign exchange revenues. Non-energy imports and non-energy exports grew by an average of 14.5% and 6.7% respectively. And the latest trade figures show that the T&T economy is very healthy: between 2003 and 2004, non- energy imports increased by 32.5 % from TT$ 15.9 billion to TT$ 21.1 billion in 2004. Meanwhile, non-energy exports increased by 20.1 % from TT$ 4.5 billion in 2003, to TT$ 5.4 billion in 2004. " Life has been good for both the merchants doing a brisk import trade, and the consumer benefiting from increased choices and competitive pricing. But some local manufacturers have been experiencing discomfort, as they battle against a flood of cheaper priced imports from their foreign counterparts. And as the local manufacturers feel the pinch, inevitably, so will John and Jane Public employed with these struggling local manufacturers, who might be forced to go on the breadline. Unfortunately, this is one of the challenges of trade liberalisation; but there is no turning back to the days of protectionism to maintain market share and job security. However, there are tools, sanctioned by the Word Trade Organisation (WTO) and the CARICOM Single Market and Economy (CSME), which can be employed to ease the transition, and reduce the negative fallout of free trade. Safeguards are one of these. Safeguards Legislation is coming… Government believes that T&T manufacturers, once given the proper time to adjust, would thrive in a free trade environment. Its trade and industrial policy is to promote the interest of the local industry and manufacturer, because of the foreign exchange earnings and the employment they generate. Before the current Parliamentary session is over, Government will be introducing Safeguards Legislation on the agenda. By implementing safeguard legislation, Trinidad & Tobago is increasing the range of measures available for protecting local industry against the adverse effects of trade liberalisation. In addition, the current demand for anti-dumping protection by local producers justifies the introduction of this legislation. What Safeguards do In essence, safeguard legislation supports those local industries that produce the same goods as those that are being imported. These industries are earners of foreign exchange, and even more importantly, they are generators of employment. When safeguard legislation is established, it is with a view to protecting the general economic well being of the country - ensuring that these industries don't go out of business, and continue to keep people employed. Sometimes the imports coming into the market are dumped; sometimes they are not, and it is simply a matter that the volume of the imports is too much for local industries to handle. If these local producers aren't supported, at least during the short term, they run the risk of reduced market share, substantial loss of sales, and eventually, collapse. Their demise would result in reduced foreign exchange earnings for the nation's coffers, and increased unemployment as workers in these industries are laid off. To ensure that this does not happen, safeguard measures would be imposed. How they work Safeguard measures are imposed on fairly traded goods - namely goods that are not dumped or subsidised - which enter the domestic market in a sudden surge, and/or which experience an unusual decline in prices. These imports could cause or threaten to cause injury to domestic producers which manufacture a product that is similar, or directly competitive. The measures imposed include restrictions on the quantities of imported goods, or increased customs duties on these goods. Those duties can exceed the bound rates that Trinidad & Tobago agreed to apply to individual products in negotiations as a WTO member. Applying a safeguard measure gives local industry a period of adjustment to enable it to compete with the increased influx of imports that normally results from trade liberalisation. Safeguard measures are to be applied only for temporary periods. The maximum initial period is four years, and for developing countries like ours, may be extended to ten years, after a new investigation determines that the continuation of the measure is necessary. In addition, safeguards must be progressively liberalised while in effect. This means that quotas and tariffs must be reduced gradually, over the period of the application. Local industry must adapt and adjust because Safeguards won't remain forever While the safeguards are in place, the affected industry must take steps to adjust to the increased competition that will follow the removal of these measures. Adjustment could take many forms: adopting improved technology, or rationalising production structures. In addition, evidence that the affected industry is adjusting must be provided to the WTO Committee on Safeguards, when the safeguard measure is being extended. However, safeguard mechanisms will not be employed arbitrarily or automatically. There will be a clear and transparent investigation before any action is taken. The local industry or manufacturer must present the Ministry with hard evidence of an increased influx of imports; the actual product prices in the country of export or origin are not required. The Ministry would then conduct a proper investigation, including a cost benefit analysis, to determine whether the mechanisms should be implemented. The Unit that would be responsible for this kind of work would be a subset of the Ministry's Fair Trading / Anti-Dumping Unit. ?
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