WT/COMTD/N/58  
 
20 November 2019  
(19-7901) Page: 1/5 
Committee on Trade and Development  Original: English  
 
NOTIFICATION BY THE GOVERNMENT OF THE RE PUBLIC OF TRINIDAD A ND TOBAGO  
UNDER SECTION C OF A RTICLE XVIII OF THE  GENERAL AGREEMENT  
ON TARIFFS AND TRADE  1994  
 
The following communication, received on 12 November 2019 , is being circulated at the 
request of the delegation of Trinidad and Tobago . 
 
_______________  
 
 
In accordance with Paragraphs 1 and 4(a) and Section C of Article XVIII, Government 
Assistance to Economic Development of the General Agreement on Tariffs and Trade (GATT), the 
Government  of the Republic of Trinidad and Tobago hereby notifies the Committee on Trade and 
Development of its modification of the bound rate of duty on HS 2523.90.00 Other Hydraulic 
Cements from the current rate of five percent (5%) to seventy percent (70%). The f ollowing table 
reflects the modification.  
 
List of tariff lines to be modified  
 
 
_______________  
  Tariff item  
Number  
(HS2012)  Description of products  Current bound rate 
duty (%) INR New bound 
rate of duty  
2523.90   Other hydraulic cements  5% - 70% WT/COMTD/N/58  
 
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  1  INTRODUCTION  
1.1.  The Government of the Republic of Trinidad and Tobago (GORTT) is desirous of granting critical 
assistance for the expansion of the existing cement industry in Trinidad and Tobago. The GORTT 
accordingly, invokes the provisions  of Article XVIII:C of the General Agreement on Tariffs and Trade 
(GATT) 1994 to modify the tariff concessions contained in its Schedule of Concessions/LXVII 
attached to the Marrakesh Protocol, in respect of HS 2523.90 Other Hydraulic Cements. The basis 
for this modification is set out below.  
2  GENERAL STATE OF THE  DOMESTIC ECONOMY  
2.1.  The Republic of Trinidad and Tobago is a developing state with a population of approximately 
1.36 million persons. The country gained Independence in 1962, a mere fifty -seven (57)  years ago. 
The fundamental shortcoming of the Trinidad and Tobago economy is its heavy reliance on the 
energy sector, with characteristics symptomatic of "Dutch Disease ". In light of this dependence, 
Trinidad and Tobago’s small, open economy is highly vul nerable to external exogenous shocks.  
2.2.  The dominance of the energy sector in the Trinidad and Tobago economy is reflected in the 
sector’s contribution to Government revenue, foreign exchange earnings, foreign direct investment 
and employment. Challenging ma cro-economic circumstances since the global financial crisis of 
2007/2008 have had an appreciable impact on the Trinidad and Tobago economy. These economic 
challenges, exacerbated by subsequent declines in the international price of natural gas and 
petrole um, as well as a reduction in domestic output levels, are manifest in extended fiscal 
imbalances and the consequential impacts.  
3  THE 2008 -2018 PERIOD  
3.1.  The country’s Gross Domestic Product (GDP) at current prices plunged from US D 25.78 billion 
in 2008 to jus t USD 23.31 billion in 2018 representing a collapse of over 10% over this period, with 
a low of US D 17.84 billion in 2009. The slowdown in the world economy has impacted Trinidad and 
Tobago’s economic recovery. The Central Statistical Office (CSO) recorded  negative growth in 2009, 
2011, 2014, 2016 and 2017 with rates of -4.4%, -0.3%, -1.0%, -6.5% and -1.9% respectively. The 
country entered a recessionary period in 2014 and flat growth was estimated for 2018.  
3.2.  Trinidad and Tobago’s Gross Domestic Product (GD P) per capita also declined by 19.4% 
between 2008 and 2018 falling from a high of US D 21,410.80 in 2008 to US D 17,259.40 in 2018, 
with a low of USD 16,124 in 2016. This means that the amount of income earned by each member 
of the population fell, on averag e by almost 20% during the 10 -year period of time under 
consideration, effectively lowering the purchasing power and standard of living of citizens.  
3.3.  As a small and vulnerable economy, it is unavoidable that the country will escape the impact 
associated wi th the deceleration in global growth and the related volatility in commodity prices. 
Trinidad and Tobago’s economic performance has been adversely affected by a collapse of 
Government revenue fueled mainly by a fall in the country’s major export commoditie s namely oil, 
natural gas and other petrochemical products coupled with decreased demand of these commodities 
in key traditional import markets. Oil prices which averaged US D 95 per barrel during the period 
2011-2014 began a severe decline from mid -2014 re aching a low of US D 26 in 2017. Since then, oil 
prices have improved but continue to fluctuate between US D 48 and US D 64 from 2015 to 2018, 
nothing close to the pre -2014 levels. Natural gas prices also experienced severe external shocks 
over the period 200 9 to 2018. During this period, prices averaged a high of US D 3.90 per MMBTU in 
2009, reaching a low of US D 2.50 per MMBTU in 2016 (a 36% decline).  
3.4.  Government revenues experienced a sharp decline from Fiscal 2014 to Fiscal 2018 falling from 
USD 8.57 billion in 2014 to US D 6.34 billion in 2018 (representing a decline of 26% ), with  a low of 
USD 5.3 billion  in in 2017. The country resorted to deficit financing in Fiscal 2014 which has since 
continued. Central Government Debt increased consistently from US D 3.4 billion in 2010 to 
USD 9.9 billion in 2018 registering an increase of 194% during this period. This rise in Central 
Government Debt was also evidenced by a rise in the country’s Debt to GDP ratio, which has 
increased during the period 2011 -2016. The Net P ublic Sector Debt to GDP ratio rose from 33.4% 
in 2011 to 58% in 2016. While the Government has introduced fiscal consolidation measures to WT/COMTD/N/58  
 
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  reduce this figure, the Net Public Sector Debt to GDP ratio remained at 60.3% in 2017 and 60.8% 
in 2018.  
3.5.  In relation to the availability of foreign exchange, Trinidad and Tobago’s Gross Official Reserves 
was reduced from a high of US D 9.3 billion in 2008 to US D 7.6 billion in 2018 representing a decline 
of 18.3% during the period under consideration. Additionall y, the country’s Import Cover (months) 
declined from 11.5 months in 2008 to 8 months in 2018.  
3.6.  Trinidad and Tobago has been undergoing a process of industrialization to correct its excessive 
dependence on primary production. The country has been somewhat s uccessful in diversifying its 
commercial oil and gas sectors into the wider petrochemical industry. The economy is still however, 
heavily susceptible to external shocks. The GORTT has managed to transform the economy by 
developing a strong and vibrant manu facturing sector which contributes approximately 6.4 % of 
GDP and employs over 60,000 persons (7.5% of the total labour force). However, output in the 
sector is concentrated in a narrow range of products (in the food and beverage sector) with low 
levels of  technology intensity and few export markets.  
3.7.  The GORTT has taken several steps to overcome these development challenges, including the 
implementation of a National Development Strategy (NDS) (2016 -2030) which incorporates the 
principles and aspirations o f the Sustainable Development Goals (SDGs), that aim to guide the 
development process, taking into consideration the immediate and future needs of all citizens. 
Following a review of Trinidad and Tobago’s past and current performance against selected count ries 
in key socio -economic areas, the NDS presents the main challenges that Trinidad and Tobago faces. 
Some of these challenges include:  
• Expanding exports and increasing foreign exchange earnings and employment ; 
• Solving and preventing crime;  
• Reversing the non -progressive values, attitudes and behaviours such as low productivity and 
poor work ethos;  
• Undertaking constitutional and institutional reforms;  
• Addressing the impact of shale gas, and low gas reserves/production in Trinidad and Tobago;  
• Eradicating the culture of dependency and sense of entitlement among the population;  
• Ensuring public service delivery, effective and efficient implementation of development 
interventions and measurement of results;  
• Transforming the existing economic grow th model into one that is environmentally friendly 
while addressing climate change, including reducing greenhouse gas emissions and building 
resilience to its adverse impacts; and  
• Protecting and sustainably using our environmental resources.  
 
3.8.  The Trinidad  and Tobago Government is focused on employment creation, further 
transformation of the economy beyond the energy sector, stimulating economic activity outside the 
urban centers, poverty reduction consistent with the UN -SDG commitments and the commitments 
in the National Development Strategy (2016 -2030). It is in this context that an appropriate policy 
intervention to provide for the continued sustainability and expansion of the local cement industry 
is both necessary and urgent.  
3.9.  The Construction industry sector is a significant contributor to GDP averaging 5.6% of GDP 
within the last five (5) years. The industry utilizes a series of indigenous materials such as, clay and 
concrete blocks, sand, aggregates and cement.  Naturally, the Cement sector is importa nt to the 
growth and development of the wider construction industry in Trinidad and Tobago which currently 
employs in excess of 82,800 persons (or 13.2% of the total workforce).  
3.10.   One of the few areas of Foreign Direct Investment in the non -energy sector has  been in the 
Cement industry (by Mexican Cement giant Cemex). Cemex has invested heavily into the local 
Cement industry through its subsidiary Sierra Trading which now owns 69.83% of shares in Trinidad 
Cement Limited (TCL) and hence controls majority owner ship of the Company. The sizable 
investment by Cemex and other players to the tune of approximately US D 109 million over the 
period 2015 -2018 sought to substantially transform the existing industry by introducing new 
technologies and has allowed TCL to con tinue its operations locally by repairing and upgrading its 
facilities, as well as building capacity to serve local demand and key export markets.  WT/COMTD/N/58  
 
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  3.11.   Cement manufacturing is heavily dependent on market size and economies of scale. The 
industry occupies a piv otal nexus between the manufacturing and construction sectors, building out 
of the country’s infrastructure; and an equally significant role in the country’s industrialization 
imperative, rendered more critical by the decline in the dominant energy sector.  The domestic 
cement industry employs approximately 440 persons directly and another 410 persons indirectly. 
The industry is also a significant contributor to Trinidad and Tobago’s foreign exchange earnings. 
TCL has also contributed positively to building investments in corporate social responsibility projects, 
amounting to US D 4.5 million  across the Caribbean Community (CARICOM). Cement is consistently 
among the top three products traded in CARICOM, and its economy -wide impact on the services 
sector is a s ignificant contributor to economic activity.  
3.12.   The local cement industry manufactures three (3) types of cement products: (i) Portland 
Pozzolan Cement, (ii) Ordinary Portland Cement, and (iii) Class G High Sulphate Resistant (HSR) 
Oilwell Cement ( "Class G O ilwell Cement "). Its core product is Ordinary Portland Cement, classified 
as Building Cement (Grey) (HS 2523.29.10).  
3.13.   Trinidad and Tobago has bound all of its tariff rates regarding cement at the World Trade 
Organisation (WTO) at seventy percent (70%), exc ept for Other Hydraulic Cements which is bound 
at a rate of five percent (5%). The modification requested for Other Hydraulic Cements would ensure 
the harmonization of all bound rates for this category of products and would allow the GORTT 
flexibility in a dopting suitable applied rates to assist with the preservation and further development 
of the local cement industry, including boosting local production levels. The present applied rate of 
duty on Other Hydraulic Cements is five percent (5%) and this went into effect on June 14, 2018.   
3.14.   Since 2016, there has been a significant increase in the imports of Other Hydraulic Cements 
(see Table I below). For the period 2016 to 2018, Trinidad and Tobago’s imports of Other Hydraulic 
Cements increased by over 303%.  These imports have a similar end -use to the product 
manufactured by TCL. This rapid increase in imports has negatively affected the local cement 
industry, thereby compelling the GORTT to intervene with a view to ensuring that the cement 
industry is able to maintain and expand its contribution to employment creation, standard of living, 
economic activity and foreign exchange inflows.  
Table I: Imports of Other Hydraulic Cements into Trinidad and Tobago (2016 -2018) in 
USD  
Tariff Item 
Number 
(HS2012)  Country of 
Origin  Share of 
Imports  TOTAL  2016  2017  2018  
 
2523.90  
  
  
  
  
  
  
  
  
  
  
        
Canada  0.10%  2,034   
1,592  437 
China  0.30%  5,611     
Barbados  0.00%  260 260   
Germany  11.20%  233,681   
233,106  575 
Portugal  0.10%  1,992     
Puerto Rico 0.00%  715    
Turkey  85.40%  6,500,809  2011 1,774,551  4,724,246  
United Kingdom  0.70%  14,112  4,550    
United States of 
America  2.20%  60,160  8,757  23,880  14,743  
Suriname  0.00%  261  
261  
TOTAL  100%  6,819,374  15,578  2,033,390  4,740,001  
Source:  Central Statistical Office, Trinidad and Tobago ( USD equivalent)  
3.15.   Over the period October 2016 to October 2018, the local cement industry recorded a decline 
in sales volume of just over 18%. Increased imports led to a reduction of the domestic comp any’s 
revenue by over 47% over the period 2016 – September 2019. The impact of the import increases 
on the domestic cement industry therefore signals an urgent crisis.  WT/COMTD/N/58  
 
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  4  THE ATTEMPT TO INVOK E THE PROVISIONS OF ARTICLE XXVIII  
4.1.  In 2018 Trinidad and Tobago soug ht to respond to the sudden increase in imports of Other 
Hydraulic Cement which is placing the continued viability of the local cement industry in jeopardy, 
by approaching the Council for Trade in Goods (CTGs), to modify the bound rate on Other Hydraulic 
Cements under GATT Article XXVIII(4). The Council did not approve the application made under 
Article XXVIII (4) on account of the objection by one Member. Another option available to Trinidad 
and Tobago is the renegotiation of the bound rate pursuant to Art icle XXVIII(1). However, in light 
of the impact faced by the local cement industry, there is an immediate urgency to treat with this 
issue promptly. Trinidad and Tobago does not have legislation in place at this time to apply a 
safeguard mechanism in accor dance with the WTO Agreement on Safeguards.  
5  TRINIDAD AND TOBAGO’ S PROPOSAL TO APPLY THE PROVISIONS OF AR TICLE XVIII  
5.1.  In an effort to secure the development and future sustainability of the local cement industry 
and to preserve the significant contributions  of the industry to the national economy and thereby 
the standard of living in the country, the GORTT invokes the provisions of Article XVIII of the GATT, 
specifically Article XVIII, paragraphs 1 and 4(a) and Section C. The purpose of this action is to 
increase, with immediate effect, the applied rate of duty on Other Hydraulic Cements, in order to 
treat with the sudden increase of imports of Other Hydraulic Cements thereby allowing the space for 
the development of the capacity of the local industry.  
5.2.  Conse quent on the decision of the GORTT to immediately increase the applied rate of duty on 
imports of Other Hydraulic Cements, Trinidad and Tobago is prepared, in accordance with paragraph 
16 of Article XVIII, to enter into consultations with any WTO Member th at may have a substantial 
interest in the Trinidad and Tobago market for Other Hydraulic Cements.   
5.3.  Evidently, in the period leading up to the decision by the GORTT to invoke Article XVIII of the 
GATT and simultaneously to increase the applied rate on impo rted cement, the increase in imports 
continues to affect domestic sales of cement negatively. In the absence of policy intervention by the 
GORTT, this substantial increase will have negative consequences for the viability of the domestic 
cement industry, w ith direct implications for national economic development prospects. Without the 
policy intervention instituted by the GORTT the domestic cement industry would continue to suffer 
the consequence of drastic import increases to the point of decimation, which  in the final analysis, 
would contribute to the national economy being even more dependent on the energy sector, a loss 
of critical foreign exchange, rising unemployment, increasing levels of poverty and social exclusion, 
and a general deterioration in the  general standard of living and economic development.  
6  CONCLUSION  
6.1.  The GORTT is committed to the development of the local cement industry in a general effort to 
raise the standard of living of its people. The GORTT has concluded that, other than the provisio ns 
available to it under Article XVIII, there exists no other measure consistent with the normal rules of 
the GATT that are suitable and practical to support the commitment by the Government of Trinidad 
and Tobago to the development of the local cement ind ustry.  
6.2.  Accordingly, having decided to increase the bound rate for Other Hydraulic Cements based on 
the compelling reasons set out above, the GORTT declares that, in compliance with paragraphs 1 
and 4(a) and Section C of Article XVIII of the GATT, it is open to co nsultations with any WTO Member 
that has a substantial interest in Trinidad and Tobago’s modification of the bound rate of duty on 
Other Hydraulic Cements of Heading 2523.90.00 from five percent (5%) to seventy percent (70%).  
November 7, 2019  
 
 
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