Ben wha yuh think bout dis

[Sir X]

Gov't signs bilateral investment treaty with Kuwait
Friday, April 05, 2013



JAMAICA has signed a Bilateral Investment Treaty (BIT) with Kuwait that will encourage and guide future investments into the Caribbean country.
The agreement, signed by Anthony Hylton, Jamaican Minister of Industry, Investment and Commerce, and Kuwaiti Minister of Finance Mustafa Al-Shemali, is part of a broader high-level Ministerial Trade Mission to the Middle East Gulf States of Kuwait, Dubai and Abu Dhabi. It forms a crucial part of the Government of Jamaica's push to transform Jamaica into one of the world's top four logistics centres, sais state promotion agency Jampro in a press release.

The BIT will seek to provide fundamental protection for Kuwaiti investments in Jamaica, ranging from the usual national treatment and most favoured nation treatment, as well as guarantees for fair and equitable treatment for investors of either state. It provides companies with the necessary legal standing in dispute settlement matters and also makes specific reference to corporate social responsibility for companies operating in either country, said JAMPRO.
The purpose of the Ministerial Mission to the Gulf States is to engage potential partners and investors in the region, as well as to promote investment opportunities in the logistics and other sectors in Jamaica. In addition, the delegation is seeking to gain insight and greater perspective on global best practices in logistics in developing the Master Plan for Jamaica's logistics industry, the agency said.
The Ministerial Mission to the Gulf States follows similar Jamaican Government-led delegations to Panama as well as to China and Singapore to both benchmark Jamaica against its proposed developments in the logistics sphere and to pursue potential partnerships with investors in the logistics area.




Read more: http://www.jamaicaobserver.com/busin...#ixzz2PmhUZR8O

[Sir X]

Good move now they need to go to Brazil and Mexico ,next btw did labour do this , juss asking.

[Sir X]

The Pacific Alliance: a new Latin American superpower

By James McKeigue Apr 02, 2013

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Times are tough for the former richest man in Brazil. Flamboyant Eike Batista made a name for himself by creating a string of billion-dollar commodity and infrastructure companies. But in the last year he saw a stunning $25bn wiped off his net worth. So where did it all gone wrong?

At his peak, Batista was a stock market darling, feted by investors for his ability to build exciting companies from mundane projects. And in the last few years he launched some of the biggest IPOs in Brazilian history. Batista's meteoric rise made him a symbol of the Brazilian boom as investors came to love the companies he founded. Spotting one of his creations is easy. They’re normally huge, based around massive infrastructure or commodity projects, and all bear Batista's signature X in the name – energy firm MPX, oil firm OGX, shipping firm SBX – you get the picture. In total he created five publicly-listed companies in the past six years. Men like Batista made Brazil a Latin American superpower.


Unfortunately another shared trait of Batista’s firms is that – despite their vast potential – none of them make a profit. With targets being missed, investors are starting to lose faith, and Batista has been hit hard. Questions are being asked about his companies’ ability to keep borrowing money and Batista has been forced into a fire-sale of some assets. That, combined with the sliding market value of his companies, has knocked billions off his personal worth.

Now, I don’t feel too sorry for Batista. After all, he’s still worth $9bn, and is dating a beautiful model-stroke-lawyer-cum-businesswoman who is half his age… so I guess his life isn’t too bad. But his tale is a useful one for New World readers, because his fortunes mirror those of Brazil.

Last year the Brazilian economy grew at a Britain-like 0.9%. Meanwhile, investors have started to doubt the Brazil story, and the main Bovespa index has dropped 13% in the last year. Brazil’s problem is that bureaucracy, poor infrastructure and high costs are suffocating economic growth and preventing it making the most of its considerable assets. Over the long-term I’m still bullish on the country – and Batista – but Brazil needs serious reform to get the economy moving again.

Invest in the 'next Brazil'
Fortunately for investors there is a ‘new Brazil’… one which has already made some of those difficult reforms. It’s called the Pacific Alliance. Regular readers will know that I’m a big fan of the Alliance – a new trade bloc made up of Latin America’s fastest-growing major economies: Mexico, Colombia, Chile and Peru. The strengths of each member economy are well known to most institutional investors (if you need a refresher, I’ve written about them before) but, judging by some of the reader feedback I get, many private investors remain unconvinced.

Indeed, despite the recent poor performance, most British retail investment in Latin America still goes to Brazil. In many ways that’s to be expected. As the only world top-ten economy in Latin America, Brazil may seem a natural investment choice for UK investors putting money in the region for the first time. They’re taking that step because in Britain, informed investors have figured out that the game is rigged against them. They know that the only way to protect their savings is to get it into another currency, so investing in booming markets in Latin American and Asia makes a lot of sense. (The trick is finding good local knowledge. That’s where my colleague Lars Henriksson comes in - he’s spent his life scouring the globe for exciting profit opportunities. To read how he does it, click here).

Those UK investors usually invest through Latin America-focused investment funds… and they normally have a strong Brazil bias. Also readers often tell me that countries such as Colombia and Peru often seem too small and risky.

But last week I attended a debate at the London School of Economics that made me think about the Pacific Alliance as a single entity. It’s a thought exercise that makes you realise you don’t always have to go straight for Brazil.

Looked at as a single economy, the Pacific Alliance is Latin America’s biggest, accounting for 40% of Latin American GDP and around half of all trade. With 210 million people it’s bigger than Brazil and richer too, both in absolute and per capita terms. Its capital markets are on par with Brazil’s and it is already attracting more foreign direct investment. Last year it brought in $70bn, up from just $18bn in 2004. It’s also an export powerhouse, accounting for about half the regional total. Moreover, those exports are balanced - a healthy mix of manufactured goods and commodities - and growing at 8% per year.

Most importantly – and this is where it differs from Brazil – it’s one of the most open economies in the world as all of the members have extensive free trade agreements with Asia, Europe and North America. The Pacific Alliance also has a much better business environment, with the World Bank putting the four members at the top of its regional ‘ease of doing business’ indicators.

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Is it just a marketing trick?
As beguiling as all the above sounds… not everyone at the LSE debate was convinced. One by one, the distinguished panel started to list their doubts about the Alliance. One of the most pertinent came from Dr Gianluca Gardini, a lecturer in international relations and Latin American politics at Bath University. He noted that “most of the best things about the Pacific Alliance” predate the signing of the treaty. “All four member economies were growing strongly before the Alliance was formed… They also had already signed the free trade agreements. So what value does the Alliance really add?”

Gardini also pointed out that the Pacific Alliance has barely any institutions and no judicial authority. That matters, because despite talk of ‘embracing Asia’, no-one actually has the authority to sign a treaty in the name of the Alliance. “Ultimately any negotiations with a third-party, such as China, would have to be carried out on a bi-lateral level by each member country.” A similar point was made by Michael Reid, Americas editor at The Economist. “The Alliance is a great brand but is it just a marketing trick?”, he asked. He also questioned the practicality of an economic union where one member, Mexico, is thousands of miles away from another, Chile.

Funnily enough I don’t disagree with them – for the large part their analysis seems spot on. But from an investor point of view many of these factors are actually strengths. Take the lack of EU-style institutions for example. OK, that might inhibit the bloc when it comes to making fancy declarations in foreign embassies, but for investors this lack of political involvement can only be a good thing. Let’s face it, one of the causes of the current eurozone crisis is that too often decisions were made for political rather than business reasons; tax revenues were redistributed as subsidies and grants, as over eager EU officials decided which countries and sectors needed investment.

I also agree with Gardini that the strong economic growth of the members has nothing to do with the Alliance per se. All four were growing strongly before the treaty was signed in 2012. They’d also already taken strong steps to reform their economies and open up to international trade. But for investors that’s fine. It makes it an alliance of likeminded economies that have several shared traits. That’s unlike the European situation, where opposites such as Greece and Germany were always going to struggle to coexist.

So we have a situation where four strong, likeminded economies have decided to build on their success and work together. They’re taking steps to create freedom of movement of goods, people and capital between their borders without the grand ‘ideals’ that inspired the European project.

What’s the next step for the Pacific Alliance?
There are early signs that the Alliance is starting to add to member growth. Visa requirements have been abolished so that member citizens can now travel freely between countries. Meanwhile, policymakers are working to extend the scope of existing trade agreements. Chile’s foreign minister recently announced plans to abolish tariffs on 90% of goods traded between members, while the remaining 10% would receive some exemptions. If this goes ahead – it’s likely to be confirmed when the presidents meet for a summit in May – it would be a significant step towards establishing a common market.

Integrating capital markets is another important step for the Pacific Alliance. Important progress has already been made on this front, with Peru, Colombia and Chile linking their exchanges through the Mercado Integrado Latinoamericano – Mila. The idea was to deepen local equity markets while bringing together exchanges with different strengths. Chile is strong in retail and services, Colombia in financials and energy, and Peru in mining. The initiative has been slow to get off the ground, and trading volumes are still pretty low. However, if Mexico’s exchange gets on board – and it has said it will – that would create a monster with a total market capitalisation of around $1trn.

Taken together, all of these steps are helping to accelerate a trend that’s become more and more noticeable in recent years – increasing trade and investment between Mexico, Colombia, Peru and Chile. Thanks to the Pacific Alliance, local firms are starting to get better access to finance and are able to sell their wares to a larger, tariff-free market. That will allow them to build up scale and create a new generation of Latin American multinationals.

One firm that looks well placed to benefit from this increasing integration is Chilean retailer Cencosud (NYSE:CNCO.T). The firm is the region’s third-biggest retailer with department stores, supermarkets and DIY chains across Chile, Peru, Colombia, Argentina and Brazil. Since I first tipped it back in December it's up almost 15%, but I think there is potential for the share price to go higher. It’s a bit of a risky buy, as the firm has funded its expansion by loading up with debt. However, I think it’s made its move at just the right time as consumer spending power is growing in nearly all of its main markets.

I’ll be looking at more ways to play growth in the Pacific Alliance in coming issues.

• This article is taken from The New World, MoneyWeek's FREE regular email of investment ideas and news from Asia and Latin America. Sign up to The New World here.

[Exile]

Well since mi no name Ben...mi can't comment...

[Sir X]

MEXICO - GROWTH AND OPPORTUNITIES
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Mon 11 Mar 2013

Opportunities for insurers abound in Mexico - Latin America’s second largest market after Brazil.

Mexico is a land of economic diversity. In Oaxaca, one of the largest states, 75% of the population lives in extreme poverty. Mexico City’s affluent residents, meanwhile, enjoy income levels comparable to those in the US. But this heterogeneous country is unified by one trend: economic growth.

According to Goldman Sachs, Mexico will be the world’s seventh largest economy within 40 years. It is currently worth more than $20bn in premium, second only in Latin America to Brazil. Interestingly, however, Mexico is on Lloyd’s list of underinsured nations. In 2011, insurance penetration was just under 2% of GDP.

Says Lloyd’s Mexico Manager, Gabriel Anguiano: “Latin America is among the fastest-growing regions for Lloyd’s. And Mexico is the largest contributor in Latin America, accounting for $397m of Gross Signed Premiums.”

Thriving economy

The economy grew by 3.6% in 2012, which, though slower than 2011’s 3.9%, is nevertheless healthy. Mexico’s current pace of economic growth is expected to continue, with the government forecasting GDP to increase annually by 3.9% for the next five years.

David Battman, Managing Director, International Business Development, at Gallagher International, sees Mexico as one of their strategic growth markets. He believes the country’s perceived historical dependence on both the US economy and the oil industry is changing:

“Mexico has 12 free trade agreements that allow it to trade preferentially with 44 countries,” he says, adding that Mexico is more than just a regional player. Mexican companies are increasingly becoming truly multinational, trading and investing on all continents, and we’re helping them to do so.”

And Mexico is not an energy economy alone - it’s growing in many other sectors. Mexican companies are among the world’s largest in telecoms, cement production, food and drinks, TV and financial services.

Private enterprise

Around half of Lloyd’s business in Mexico is government-related risks, with clients comprising regional and federal authorities as well as state-owned companies. However, key growth classes of business for Lloyd’s in Mexico are aviation, energy, marine and property, in both the public and private sector.

Mike Hughes, Chief Executive at Aon Benfield Latin America, explains: “Aviation is a very big sector for us. We’re forecasting growth in the private middle market, ie regional
airlines and helicopter services.”

He also says property will grow in both the public and private sector, in line with the economy and driven by construction. In marine, “blue water marine will stay as is but [private] cargo and in-land transit will grow”, again driven by the expanding economy.

Government investment

A government drive to invest in infrastructure will create further opportunities for the Lloyd’s market. Under the National Infrastructure Plan for 2013 - 2018, the State will spend some $400bn on 1,138 projects in sectors including energy, tourism, transport, water and urban development.

Rafael Audelo Mendez is the Chief Executive of Seguros Inbursa, the insurance arm of Mexican Financial Services company, Grupo Financiero Inbursa:

“Mexico needs to build highways, ports and dams. This will bring opportunities for foreign insurance and reinsurance because these projects entail large risks and the capacity that we have in Mexico is not enough.”

Energy is an important growth area. Mexico plans to invest $20bn per year in its oil industry up to 2025 through state oil company Petróleos Mexicano. Lloyd’s Mexico Manager, Gabriel Anguiano:

“There will be particular growth in offshore energy, which is where most of Mexico’s oil is. Production has fallen in the last decade because we have exhausted all the ‘low hanging fruit’ in shallow waters. Now we have to venture into deep waters.”

For those ready to embrace Mexico, how can you develop an edge in this competitive market? A key strength Lloyd’s brings is the fact that its coverholders and service companies are allowed to set up onshore.

Anguiano says: “No one is taking advantage of this yet so there’s a real opportunity to write medium-sized risks that don’t come to London.”

[Sir X]

Of course,its an open forum..lol

[Mosiah]

It forms a crucial part of the Government of Jamaica's push to transform Jamaica into one of the world's top four logistics centres, sais state promotion agency Jampro in a press release.

It always amuses me when we position ourselves for these lofty positions when...listen, can't we just concentrate on getting ourselves out of this massive economic rut before we start thinking of becoming one of the four largest anything?!?

Forgive my short term vision but I'm just saying!

[Sir X]

It doesnt amuse me anymore when we cant see development of our ports both sea and air (logistics) is crucial, essential paramount for us to get out of our economic mess , it is the key.


You arent forgiven, just saying , we need to wake up, panama invested in its logistics , expanding its canal and its economy opened up, it was the key,not tourism, or anyother commodity, its was logistics , the ports , we have a natural trade route and facilities , wi can tan deh.

[Mosiah]

If we think about pulling ourselves out of the rut by doing the right things, like expanding our port, then all other things will fall into place. But talking bout best this, and biggest dat...cho man!

[Sir X]

Par the course in salesman ship,man nuh sell peanut, im sell peaaaaaaaaaaaaaaaaaaannnutttsss !