Trinidadian Beverage producer threatens legal action over foreign exchange woes

Lawyers representing Ramsaran Dairy Products (RDP) have issued a warning to the Trinidadian government, signaling potential legal action over the government’s failure to facilitate the importation of paper-based cartons due to foreign exchange shortages.

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In a pre-action protocol letter addressed to Attorney General Reginald Armour, the local beverage producer outlined its grievances. 

It highlighted the rejection of foreign exchange requests made by RDP founder Rajnanan Ramsaran in both March and September 2017, a move allegedly spearheaded by Finance Minister Colm Imbert.

Unequal distribution of foreign exchange sparks controversy

Richard Jaggasar, the attorney representing RDP, emphasized what the company perceives as an unequal distribution of foreign exchange within Trinidad and Tobago. 

Drawing attention to the disparity, he pointed out that several other companies seemingly faced no impediments in accessing foreign exchange, a privilege denied to Ramsaran Dairy Products.

Environmental concerns and business practices

RDP’s pre-action protocol letter underscored the company’s commitment to environmentally friendly packaging. 

While acknowledging the detrimental effects of plastic, the company stressed its preference for paper-based cartons. This stance aligns with global trends favoring biodegradable and reusable materials.

Allegations of favoritism and unjust treatment

The crux of RDP’s argument lies in allegations of preferential treatment toward certain companies. It accused the government of granting liberal access to foreign exchange to select entities while unjustly denying Ramsaran Dairy Products equal treatment. 

Moreover, the letter highlighted the distinction between RDP, a locally-based producer, and other entities merely serving as agents or redistributors of imported materials.

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Implications for local economy and livelihood

Emphasizing its significant contributions to the local economy, RDP reiterated its role as a reputable medium-sized family-owned business. 

By providing employment opportunities and offering locally made products packaged in environmentally sustainable materials, the company positions itself as a vital player in Trinidad and Tobago’s economic landscape.

Ongoing struggle and call for equity

Ramsaran Dairy Products lamented the consistent refusal of foreign exchange applications crucial for its operations. 

The company’s frustration stems from what it perceives as differential treatment.

The letter contends that Ramsaran’s requests for essential foreign exchange, crucial for sustaining its operations, have been persistently denied, contrasting starkly with the preferential treatment extended to other companies and foreign exchange consumers.

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