98-4586 MOREPRESS RELEASE
PRESS/TPRB/90
16 November 1998
 TRADE POLICY REVIEW
REVIEW OF TRINIDAD AND TOBAGO
TPRB'S EVALUATION
The Trade Policy Review Body of the World Trade Organization (WTO) concluded its first
review of Trinidad and Tobago's trade policies on 12 and 13 November 1998. The text of the
Chairperson's concluding remarks is attached as a summary of the salient points which emerged during
the discussion. The review enables the TPRB to conduc t a collective examination of the full range of
trade policies and practices of each WTO member country at regular periodic intervals to monitorsignificant trends and developments which may have an impact on the global trading system.
The review is based on two reports which are prepared respectively by the WTO Secretariat and
the government under review and which cover all asp ects of the country's trade policies, including its
domestic laws and regulations, the institutional framework, bilateral, regional and other preferential
agreements, the wider economic needs and the external  environment. A record of the discussion and the
Chairperson's summing-up together with these two reports, will be published in due course as the
complete trade policy review of Trinidad and Toba go and will be available from the WTO Secretariat,
Centre William Rappard, 154 rue de Lausanne, 1211 Geneva 21.
Since December 1989, the following reports have been completed: Argentina (1992),
Australia (1989, 1994 & 1998), Austria (1992), Bang ladesh (1992), Benin (1997), Bolivia (1993),
Botswana (1998), Brazil (1992 & 1996), Cameroon (1995), Canada (1990, 1992, 1994 & 1996), Chile
(1991 & 1997), Colombia (1990 & 1996), Costa Rica (1995 ), Côte d'Ivoire (1995), Cyprus (1997), the
Czech Republic (1996), the Dominican Republic (1996), Egypt (1992), El Salvador (1996), the
European Communities (1991, 1993, 1995 & 1997), Fiji (1997), Finland (1992), Ghana (1992), HongKong (1990 & 1994), Hungary (1991 & 1998), Icel and (1994), India (1993 & 1998), Indonesia (1991
and 1994), Israel (1994), Jamaica (1998), Ja pan (1990, 1992, 1995 & 1998), Kenya (1993), Korea,
Rep. of (1992 & 1996), Lesotho (1998), Macau (19 94), Malaysia (1993 & 1997), Mauritius (1995),
Mexico (1993 & 1997), Morocco (1989 & 1996), New Zealand (1990 & 1996), Namibia (1998),
Nigeria (1991 & 1998), Norway (1991 & 1996), Pakistan (1995), Paraguay (1997), Peru (1994), the
Philippines (1993), Poland (1993), Romania (1 992), Senegal (1994), Singapore (1992 & 1996),
Slovak Republic (1995), the Solomon Islands (1998), South Africa (1993 & 1998), Sri Lanka (1995),
Swaziland (1998), Sweden (1990 & 1994), Switzerland (1991 & 1996), Thailand (1991 & 1995),
Trinidad and Tobago (1998), Tunisia (1994), Turkey (1994 & 1998), the United States (1989, 1992,
1994 & 1996), Uganda (1995), Uruguay (1992), Ve nezuela (1996), Zambia (1996) and Zimbabwe
(1994).PRESS/TPRB/90
Page 2/3
MORETRADE POLICY REVIEW BODY
Review of Trinidad and Tobago
Concluding remarks by the chairperson
The first Trade Policy Review of Trinidad and Tobago was conducted by the TPR Body on
12-13 November 1998.  These remarks, prepared on my own responsibility, are intended to
summarize the main points of the discussion;  they are not intended as a full report.  Further details of
the discussion will be fully reflected in the minutes.
The discussion developed under three main themes:  (i) economic environment;  (ii) trade
policy measures;  and (iii) sectoral policies.
Economic environment
Members congratulated Trinidad and Tobago on its recent liberalization and economic
reforms, which had resulted in steady growth rates, low inflation and had attracted substantial foreign
investment.  However, challenges remained, including dependency on the energy sector, high
unemployment and a still sizeable participation of the State in key sectors.  Also, the traditional tradesurplus had turned to deficit in 1997, primarily as a consequence of a surge in imports.  There was
also concern about the effect of lower oil prices on export earnings and government revenue.
Members welcomed the steps taken by Trinidad and Tobago to develop a legal framework for
competition policy and encouraged its prompt implementation.  There was some worry about the
range, cost and coherence of the various incentive schemes, particularly with respect to investment,for which procedures were also sometimes cumbersome.  Members encouraged Trinidad and Tobago
to continue to seek the diversification of economic activity and to accelerate the process of
privatization, particularly in the agriculture and energy sectors.
Members commended Trinidad and Tobago on it s commitments to the multilateral trading
system particularly as seen by the implementation of WTO agreements in some cases ahead ofschedule. They acknowledged the importance of Trinidad and Tobago's role within CARICOM.
The representative of Trinidad and Tobago expressed his country's firm adherence to a rule-
based multilateral trading system.  His country had willingly assumed the obligations resulting from
the Uruguay Round. However, he felt that the WTO needed to address the particular interests and
needs of developing country members and to ensure that sustained efforts were made towardsbalancing the obligations assumed and the benefits derived from the system. He stressed the need for
new approaches to deal with the special treatment and differential treatment for developing countries
in the WTO, for example through the provision of technical assistance and through technology
transfer. As a small island economy, Trinidad and Tobago fully supported initiatives in international
fora to identify measures to integrate small states into the global economy.
On the issues raised by Members, the representative of Trinidad and Tobago said his
Government had undertaken a trade reform programme to diversify the economy away from the
petroleum sector and to improve employment oppor tunities.  Unemployment had already declined
significantly.  On the trade deficit, capital imports had been an important factor.  He identified several
sectors with the potential for sustainable export-led growth, including financial services, agro-
processing, software development, specialty chemicals, engineering goods and services, and cultural
tourism. Future economic strategies would include continued efforts to attract foreign investment andto foster the development of small businesses, tourism and light manufacturing sectors.  The
representative noted that the process of amending investment legislation would lead to a
simplification of procedures and enhance transparency.
Trade policy measures
Members welcomed Trinidad and Tobago's trade liberalization, including a lowering of
tariffs, virtual elimination of quantitative restrictions and a reduction in the scope of import licensing.PRESS/TPRB/90
Page 4
MOREIn encouraging Trinidad and Tobago to continue with these efforts, Members raised a number of
questions particularly with respect to:  the gap between applied and bound tariff rates; high import
surcharges on agricultural products;  import licensing; notification of legislation dealing with
anti-dumping and countervailing measures;  standards and technical regulations;  tax allowances for
exports; and intellectual property rights, especially with respect to enforcement of copyrights.
In reply, the representative of Trinidad and Tobago stated that the maximum tariff rate had
been reduced from 45% to 20% over five years, and that there were no immediate plans to lower
tariffs further. Any alteration of the Common External Tariff would require approval from the
CARICOM Heads of Government. With regard to  the gap between applied and bound tariffs for
agricultural products, the Government intended to re-examine bindings upon completion of a review
of agricultural policies. The representative noted that only a few items were currently subject to
licencing, mainly for public safety and national security reasons, as well as under CARICOM Treaty
obligations. Trinidad and Tobago had amended its an ti-dumping legislation to ensure conformity with
its WTO obligations; a notification in this respect would shortly be submitted to the WTO. Apart fromanti-dumping, Trinidad and Tobago had amended its legislation and procedures in a number of areas,
including TRIPS and customs valuation, and was in th e process of drafting or revising legislation in
other areas.  The procedure for setting standards was also explained.
With regard to export allowances, involving a tax credit based on certain export earnings, the
representative of Trinidad and Tobago said that, in accordance with the Budget Speech of 1998, they
would be eliminated in 2002. Trinidad and Tobago was addressing the problem of enforcement of
intellectual property rights, particularly regarding video and audio cassette piracy.  The representative
of Trinidad and Tobago stressed the need for technical assistance to strengthen the capacity of small
trading partners to meet reporting obligations under the WTO and to fully exercise their rights.
Sectoral policies
Members acknowledged Trinidad and Tobago's efforts to diversify its economy,  reducing its
dependency on the energy sector by facilitating activity in non-petroleum manufacturing and services.
On agriculture, Members posed questions with regard to issues such as: high import surcharges,
quantitative restrictions applied to imports of live poultry, and the role of state-owned enterprises in
the sector.  Regarding the energy sector, Trinidad  and Tobago was encouraged to implement a more
transparent pricing structure for natural gas. On services, Members welcomed Trinidad and Tobago's
commitments in the GATS and encouraged a broadening of their scope, particularly in financial
services.  A number of questions were raised on specific issues, including "exclusive rights"
provisions in telecommunications; banking sector regulations and licensing requirements;
transparency in the work permits regime;  and licensing and cargo handling in both maritime andairline services.
The representative of Trinidad and Tobago stated that the high surcharges applied to the
agricultural sector would be reviewed before 2 004 with a view to ensuring compliance with WTO
commitments. Regarding maritime transport services, the Government was considering a proposal for
the restructuring of port operations. On financial services, national treatment was accorded to foreign
providers, and the Government was finalizing an offer on banking to be presented by January 1999.
The Government was pursuing the matter of exclusive rights on basic telecommunication serviceswith the provider, with a view to advancing libera lization in this sector.  Amendments were being
made to the Telecommunications Act; these were expected to be approved by June 1999, allowing
Trinidad and Tobago to meet its GATS obligations . Detailed answers were also provided regarding
civil aviation and the issuance of work permits.
*******PRESS/TPRB/90
Page 5
Conclusions
In conclusion, Members expressed appreciation for Trinidad and Tobago's liberalization
efforts, and prompt compliance with their obligations under the WTO. Members strongly welcomed
the many steps that Trinidad and Tobago had already taken in becoming a more open,
outward-oriented economy that was integrated into the multilateral system;  they acknowledged the
challenges faced by Trinidad and Tobago as a small resource-based economy and appreciated the
reform programme to diversify the economy.  It was felt that a continuation of Trinidad and Tobago'strade-opening efforts would consolidate the basis for economic diversification and for steady,
sustainable growth;  in this respect, the support of Trinidad and Tobago's trading partners would also
be important.
END