| TRADE
MAURITIUS, SEYCHELLES
KEY TAKEAWAYS
From tariffs
Geopolitical readiness is essential: Trade wars and sanctions present ongoing challenges. Businesses must diversify supply sources and markets, set up operations near target regions, and continually monitor geopolitical developments. Compliance with trade laws is critical to avoid costly penalties. Resilient supply chains are key: Companies must rethink supply chain models by adopting multi-sourcing, nearshoring, and buffer stock strategies. Technology plays a vital role in improving transparency and predicting disruptions. ESG integration also supports resilience and regulatory alignment. Strategic market entry matters: Entering foreign markets requires careful research into local laws, taxation, and business customs. Contracts must address risks like asset confiscation or regulatory changes. Joint ventures with local partners can ease entry and ensure compliance, helping businesses capitalise on international opportunities effectively.
political and currency stability, taxation, local culture, and business norms. Often, companies are lured into markets due to low costs or exclusivity of products, but overlook crucial factors that require expert advice. Issues like hidden taxes or export restrictions are common in markets like Africa. VAT and tax compliance is complex and, if neglected, can result in major financial losses. Some goods may violate ESG standards due to exploitation or environmental concerns. Contracts should address dispute resolution, ESG compliance, governing law, and asset protection, including risks of nationalisation or currency fluctuations. Proper due diligence and local partnerships can mitigate these risks. In many cases, joint ventures with experienced local partners offer smoother market entry and open new opportunities. Many businesses have thrived by capitalising on global opportunities – whether trading cocoa from Ghana, minerals from South Africa, oil from Nigeria, textiles from Vietnam, or coffee from Kenya. But these gains are sustainable only when businesses proactively manage the risks involved. “Businesses should avoid relying on a single supplier or country.”
Businesses sourcing from Africa should consider establishing local operations to benefit from regional treaties and trade blocs. Similarly, being present in the EU may be essential for others. • Regular Updates. Staying updated is crucial. Businesses involved in international trade need experts to monitor tariffs and sanctions, which change frequently. This supports not only anticipation and planning but also ensures compliance with international trade laws. Trading with sanctioned entities can lead to fines and penalties. • Technical Approach. Businesses should adopt a more technical approach. Contracts should include clauses that account for future tariffs or sanctions, locking in prices and Q2 Are you seeing shifts in supply chain strategies due to geopolitical conflicts? How can you help clients restructure supply chains to maintain resilience and regulatory compliance? Supply chain strategies are shifting rapidly. Apple has diversified production to India and Vietnam. Toyota and other manufacturers have moved production closer to their end markets. Footwear and breweries have relocated operations to avoid Brexit-related disruptions. Companies increasingly favour local sourcing to reduce risks. India has become a notable alternative. Supply chains need restructuring for resilience and compliance. Over-reliance limiting liabilities. Investing in technology can provide insights into market changes and support better planning. on a single source or region is risky. Multi-sourcing, local production, or nearby alternatives should be considered. While initial supply chains may have been cheaper, geopolitical tensions may outweigh those benefits. Companies should maintain inventory buffers to manage disruption times.
to tactics
Future-Proofing Cross-Border Commerce
Vimal Damry Managing Director, Premier Financial Services Limited Q1 How are you advising
Q3 With global markets in flux, how can businesses balance risk and opportunity in cross-border trade, and what strategic guidance can you provide? Beyond trade wars and sanctions, entering new markets presents its own challenges. A strategic approach is essential for success. Businesses must understand the target country’s regulatory environment, legal system,
aluminium, and other general goods were more affected. These measures, although some have been delayed, create significant uncertainty for businesses. Sanctions are another challenge. Several countries face trade sanctions for reasons including national security concerns, human rights violations, and geopolitical conflicts. Amongst the usual targets are countries like Iran, North Korea, Syria, Cuba, and more recently Russia due to its military actions in Ukraine. Sanctions lists constantly evolve, with more countries and entities frequently added. Businesses face a volatile environment, and without preparation, they may be forced to shut down. What once worked may quickly become obsolete. Strategies for resilience and continuity are essential, including: • Diversification. Diversifying the sourcing of products or materials is key. Businesses should avoid relying on a single supplier or country. Many regional blocs offer competitive advantages. This decision should be proactive, not reactive. Apple’s move to set up factories in India due to China- related trade issues is an example. Proximity to markets is vital.
businesses in your jurisdiction when
protecting themselves from the impact of trade wars and sanctions, and what strategies can professional services firms offer to mitigate these risks? Historically, trade wars have always existed. You can trace them back to the 1930s. In 1930, there was what was known as the Smoot-Hawley Tariff, where the U.S. raised tariffs on thousands of imported goods. This led to retaliatory tariffs from other countries and the Great Depression. That was followed by the Anglo-Irish trade war, leading to a tariff standoff between both countries. These are old examples of how trade wars have occurred. More recently, the U.S.–China trade war since 2018 was initiated by the U.S. imposing tariffs on Chinese imports to correct trade imbalances. After his election, Trump introduced the concept of reciprocal tariffs, brandishing a board showing U.S. levies on goods from various countries, including the EU and China. Certain products like steel,
Vimal Damry is the Managing Director/CEO/Founder of Premier Financial Services Limited (since September 2007) which is a FSC licensed Management Company based in Mauritius and is also a director of UHY Premier Financial Services Limited which is an FSA Seychelles licensed Corporate Service Provider and Trustee (since June 2014). He has been in the global business and financial industry for more than 25 years. His extensive expertise in the field has earned him recognition and respect among his peers and clients alike. Vimal Damry’s commitment to excellence is evident in his meticulous approach to managing complex financial structures and his ability to navigate the intricate landscape of international regulations. His leadership at Premier Group has been instrumental in positioning these firms as leaders in the financial services industry. Beyond his professional achievements, Vimal is known for his dedication to continuous learning and staying abreast of the latest developments in the financial world.
ABOUT US...
premierfinservices.com
Premier Financial Services Limited operates mainly through three licensed companies based in Mauritius via a Trust and Management Licence from the Financial Services Commission, in Seychelles via an International Corporate Service Provider (ICSP) and International Trustee Services Providers (ITSP) by the Financial Services Authority and in the Dubai, United Arab Emirates via a Corporate Service Provider (CSP) Licence by
the Dubai Multi Commodities Centre (DMCC) and as an Approved Registered Agent of Ras Al Khaimah International Corporate Centre (RAK ICC). It is supported by its Representative office in South Africa.
+230 245 6703 vimal@premierfinservices.com irglobal.com/advisor/vimal-damry
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