Trinidad and Tobago

Location : Caribbean, islands between the Caribbean Sea and the North Atlantic Ocean, northeast of Venezuela

Capital : Port-of-Spain

Languages : English (official), Hindi, French, Spanish, Chinese 

Area : 5,128 sq km

Land Use : arable land: 14.62%; permanent crops: 9.16%; other: 76.22% (2001)

Natural Resources : petroleum, natural gas, asphalt

Population : 1,088,644 (July 2005 est.)

Population below poverty line 21% (1992 est.)

Labour force : 590,000 (2004 est.) 

Labour force participation rate : 54.20% of population (2004 est.)

International Organisation participation : ACP, C, Caricom, CDB, FAO, G-24, G-77, IADB, IBRD, ICAO, ICC, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, ISO, ITU, LAES, MIGA, NAM, OAS, OPANAL, OPCW, UN, UNCTAD, UNESCO, UNIDO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO

GDP per capita : U$10,500 (2004 est.)

GDP Real Growth Rate : 5.7% (2004 est.)

GDP sectoral composition : agriculture: 2.7%; industry: 47%; services: 50.3% (2004 est.)

Investment (gross fixed): 19.4% of GDP (2004 est.)

Industries: petroleum, chemicals, tourism, food processing, cement, beverage, cotton textiles

Industrial production growth rate : 7.2% (2004 est.) 

Agriculture - products : cocoa, rice, citrus, coffee, vegetables; poultry

Exports : U$6.671 billion f.o.b. (2004 est.)

Exports - commodities : petroleum and petroleum products, chemicals, steel products, fertilizer, sugar, cocoa, coffee, citrus, flowers

Exports - partners : US 67.1%, Jamaica 5.7%, France 3.5% (2004)

Imports : U$4.65 billion f.o.b. (2004 est.)

Imports - commodities : machinery, transportation equipment, manufactured goods, food, live animals

Imports - partners : US 23.9%, Venezuela 11.5%, Germany 11.2%, Brazil 10.7%, Spain 6.4%, Italy 5.1% (2004)

QUALITATIVE TRADE PROFILE  

Trinidad and Tobago 's trade policy is based on diversifying the economy by facilitating the expansion of the non-oil manufacturing sectors through the provision of enabling policy legislation and the negotiation of trade agreements with third countries. In the Uruguay Round, Trinidad and Tobago bound all its tariffs at ceiling rates. Specific duties apply to 27 tariff lines, representing 0.4% of all tariff lines (see below). Trinidad and Tobago's tariff has 11 "permanent" tiers, with rates of 0, 2.5, 5, 10, 15, 20, 25, 30, 35, 40, and 45%.

Trinidad and Tobago applies the CARICOM Common External Tariff (CET). The tariff generally applies a top rate of 20% for industrial goods and 45% for agricultural products. The structure of the tariff is based on the concept of the economic use of the goods, differentiated between inputs and final goods. Inputs are identified as primary, intermediate or capital goods, while for final goods, distinction is made between basic and non-basic categories of goods. Certain foodstuffs and other supplies are classified as basic, while all other final goods are non-basic.

The average applied MFN tariff was 9.1% in 2004 (excluding specific duties); including tariff surcharges the average increases to 9.2%. Tariff protection for agricultural products averaged 17.1% (or 17.9% including surcharges) while tariffs for non-agricultural products averaged 7.6%.

INSTITUTIONAL FRAMEWORK 

The Ministry of Trade and Industry has overall responsibility for trade policy formulation and implementation. Its goal is to develop policies and strategies to promote trade and investment and to facilitate industrial development. Some of the Ministry's specific trade objectives include the negotiation and management of Trinidad and Tobago's participation in trade and economic arrangements, fostering commercial relations with trading partners, and enhancing export competitiveness. The Ministry of Trade and Industry has responsibility for WTO matters. The Ministry of Foreign Affairs, in collaboration with the Ministry of Trade and Industry, represents Trinidad and Tobago at the WTO. As a member of CARICOM, Trinidad & Tobago is committed to a regionally coordinated external trade policy for the group. Trinidad & Tobago therefore coordinates closely with the relevant regional agencies on trade policy matters, including the Caribbean Regional Negotiating Machinery (RNM).

The Standing Advisory Committee on Trade and Related Matters, headed by the private sector, advises the Minister of Trade and Industry on trade policy formulation. The Technical Coordinating Committee, headed by the Permanent Secretary of the Ministry of Trade and Industry, and comprising representatives from the public and private sectors and civil society, advises the Minister of Trade and Industry on trade policy issues taking the national perspective into account.

The Trade Promotion and Development Department of the Ministry of Trade and Industry has the task of coordinating Trinidad and Tobago's position in regional and international trade agreements and negotiations, and is responsible for matters dealing with the WTO, the FTAA, ACP-EU and CARICOM. The Industrial Development and Inward Investment Unit of the Ministry is responsible for formulating, monitoring, and evaluating policies and for implementing recommendations and plans relating to industrial development and investment promotion.

The Ministry of Finance is ultimately responsible for tariff and customs administration, as well as for other taxation and fiscal incentives issues. The Customs Administration is responsible for policy implementation at the border and works closely with the Ministry of Trade and Industry. The Ministry of Agriculture, Land and Marine Resources is responsible for agricultural policy and for issuing sanitary and phytosanitary permits. The Ministry of Energy and Energy Industries (MEEI) is responsible for administration, regulation, and policy formulation relating to the hydrocarbons sector. The MEEI is responsible for granting concessions, licences, and contracts for the conduct of petroleum operations. The Ministry of Foreign Affairs provides input for the political dimension of trade agreements.

TRADE AGREEMENTS

Bilateral

Trinidad & Tobago has bilateral trade agreements with Colombia, Costa Rica, Cuba, Dominican Republic, and Venezuela through the Caribbean Community (CARICOM). It is a beneficiary of the Generalized System of Preferences schemes of Australia , Canada, the European Union, Japan, New Zealand, Russia, Switzerland, and the United States States . The Caribbean Basin Initiative (CBI) provides for duty-free access to the U.S. market for a range of Trinidad & Tobago's exports. Exports from Trinidad & Tobago also enjoy preferential access to the Canadian market through the Canadian Programs for Commonwealth Caribbean Trade, Investment and Industrial Cooperation (CARIBCAN). Through CARICOM, Trinidad & Tobago is currently negotiating a free trade agreement to replace CARIBCAN as well as a free trade agreement with MERCUSOR.

Regional

Trinidad & Tobago is a member of the Caribbean Community and Common Market (CARICOM). It is currently negotiating an Economic Partnership Agreement with the EU through the CARIFORUM configuration. It is also involved in negotiations to form the hemispheric Free Trade Area of the Americas and is bidding to host the secretariat.

Multilateral

Trinidad and Tobago is a WTO member and grants at least MFN treatment to all its trading partners. It has GATS commitments in 32 sectors.

NEED PRIORITIES  

Priority areas for Trinidad & Tobago are; research on EPA and WTO negotiation issues, research on other trade policy related issues; institutional strengthening; liberalization impact studies; database development and inter and intra governmental co-ordination.

Source: Commonwealth Yearbook 2005, World Fact Book, WTO Secretariat.