WORLD  TRADE  
ORGANIZATION  RESTRICTED 
WT/TPR/S/260 
1 February 2012 
 
 (12-0620) 
Trade Policy Review Body  
  
 
   
 
TRADE POLICY REVIEW 
 
Report by the Secretariat 
 
TRINIDAD AND TOBAGO 
 
 
  
This report, prepared for the third Trad e Policy Review of Trinidad and Tobago, 
has been drawn up by the WTO Secretariat on its own responsibility.  The 
Secretariat has, as required by the Agreement establishing the Trade Policy 
Review Mechanism (Annex 3 of the Ma rrakesh Agreement Establishing the 
World Trade Organization), sought clarif ication from Trinidad and Tobago on its 
trade policies and practices.  Any technical questions arising from this report may be addressed to Mr. John 
Finn (tel:  022 739 5081) and Usman Ali Khilji (tel:  022 739 6936). 
 Document WT/TPR/G/260 contains the policy statement submitted by Trinidad and Tobago.  
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Trinidad and Tobago. Trinidad and Tobago WT/TPR/S/260 
 Page iii 
 
 
CONTENTS 
 
  Page 
SUMMARY vii 
I. ECONOMIC ENVIRONMENT 1 
 (1) R ECENT ECONOMIC DEVELOPMENTS  5 
 (i) Macroeconomic indicators 5 
 (ii) Heritage Stabilisation Fund 6  (iii) Balance of payments 7 
 (2) D
EVELOPMENTS IN TRADE AND FOREIGN DIRECT INVESTMENT  8 
 (i) Composition of trade 8 
 (ii) Direction of trade 10 
 (iii) Foreign direct investment 10 
II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 12 
 (1) G ENERAL CONSTITUTIONAL AND LEGAL FRAMEWORK  12 
 (2) D EVELOPMENT AND ADMINISTRATION OF TRADE POLICY  12 
 (i) Trade and investment policy objectives 12 
 (ii) Trade policy formulation and implementation 14 
 (3) F OREIGN INVESTMENT REGIME  14 
 (4) I NTERNATIONAL RELATIONS  15 
 (i) World Trade Organization 15 
 (ii) CARICOM and re lated agreements 16 
 (iii) Non-reciprocal arrangements 19 
III. TRADE POLICIES AND PRACTICES BY MEASURE 21 
 (1) M EASURES DIRECTLY AFFECTING IMPORTS  21 
 (i) Procedures 21 
 (ii) Customs valuation 22 
 (iii) Tariffs 22 
 (iv) Rules of origin 32 
 (v) Import prohibitions, restrictions, and licensing 33 
 (vi) Contingency measures 35 
 (2) M EASURES DIRECTLY AFFECTING EXPORTS  38 
 (i) Procedures 38  (ii) Export taxes, charges and levies 38 
 (iii) Export licensing 38 
 (iv) Export tax and duty concessions, including free zones 39  (v) Export financing and credit insurance 40 
 (vi) Export promotion 41 
 (3) M
EASURES AFFECTING PRODUCTION AND TRADE  41 
 (i) Incentives 41 
 (ii) Government procurement 42 
 (iii) Standards and other technical requirements 44  (iv) Intellectual property rights 47 
 (v) State-trading companies 52 
 (vi) State-owned companies and privatization 52  (vii) Competition policy and price controls 52 
 WT/TPR/S/260 Trade Policy Review 
Page iv 
  
  Page 
IV. TRADE POLICIES BY SECTOR 55 
 (1) A
GRICULTURE  55 
 (i) Features 55  (ii) Trade 55 
 (iii) Agriculture Policies 57 
 (2) M
INING AND ENERGY  62 
 (i) Features 62 
 (ii) Policy 63 
 (iii) Petroleum 66  (iv) Natural gas 67 
 (v) Electricity 68 
 (3) S
ERVICES  68 
 (i) Financial services 69 
 (ii) Telecommunications 75 
 (iii) Tourism 78  (iv) Transport 79 
REFERENCES 83 
APPENDIX TABLES 85 Trinidad and Tobago WT/TPR/S/260 
 Page v 
 
 
CHARTS 
    P a g e  
I. ECONOMIC ENVIRONMENT 
I.1 Merchandise trade, by product, 2005 and 2009 9 
I.2 Merchandise trade, by main origin and destination, 2005 and 2009 11 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
III.1 Frequency distribution of MFN tariff rates, 2011 26 
III.2 Tariff escalation by ISIC 2-digit industry, 2011 29 
IV. TRADE POLICIES BY SECTOR 
IV.1 Agriculture production in Trinidad and Tobago 56 
IV.2 Agriculture subsidies 61 
TABLES 
I. ECONOMIC ENVIRONMENT  
I.1 Selected macroeconomi c indicators, 2005-10 2 
I.2 Basic economic and soci al indicators, 2005-10 4 
I.3 Balance of payments, 2005-10 7 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
III.1 Structure of tariff schedule, 2004 and 2011 23 
III.2 Items for which the applied MFN tariff (2011) exceeds the final bound rate, 2011 23 
III.3 Summary analysis of Trinidad and Tobago's MFN tariff, 2009 25 
III.4 Specific duties, 2011 27 III.5 Import surcharges, 2005-11 28 
III.6 Excise duties, 2011 31 
III.7 CARICOM rules of origin 32 III.8 Import licensing requirements 34 
III.9 Anti-dumping investigations initiated 1998 to May 2011 36 
III.10 Exports requiring a licence, 2011 39 
IV. TRADE POLICIES BY SECTOR  
IV.1 Top 10 exports of agricultural products + sugar 56 
IV.2 Top 10 imports of agricultural products 57 IV.3 Guaranteed prices for agricultural products, 2005, 2009 and 2011 59 
IV.4 Domestic support to agriculture, 2000-08 61 
IV.5 Contribution of the energy sector to the economy 62 IV.6 Petroleum and natural gas production and reserves, 2002-10 63 
IV.7 Liquefied natural gas company of Trinidad and Tobago 67 
IV.8 The financial system in Trinidad and Tobago, 2010 69  
 
 
 WT/TPR/S/260 Trade Policy Review 
Page vi 
  
APPENDIX TABLES 
    P a g e  
I. ECONOMIC ENVIRONMENT  
AI.1 Merchandise exports and re-exports by groups of products, 2005-09 87 
AI.2 Merchandise imports by group of products, 2005-09 89 
AI.3 Merchandise imports by trading partner, 2005-09 91 
AI.4 Merchandise exports and re-exports by trading partner, 2005-09 93  
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES  
AII.1 Trade and trade related laws, and responsible ministry, 2011 95 
IV. TRADE POLICIES BY SECTOR  
AIV.1 Agriculture production in Trinidad and Tobago 103 
AIV.2 Agricultural Incentive Programme 104 
 
 
 
 Trinidad and Tobago WT/TPR/S/260 
 Page vii 
 
 
SUMMARY 
 
1. Trinidad and Tobago is a high income devel oping country with a GDP per capita of over 
US$15,500.  It has the largest economy in the CARICOM group and, with a population of about 
1.3 million, is the third most populous country.  Trade is very important to the economy, with the 
value of imports and exports of goods equivalent to about 78% of GDP.   
2. The economy is dominated by oil and gas, whic h account for three quarters of exports and 
half of government revenue.  Therefore, the economy is sensitive to changes in oil and gas prices, and 
the fall in prices following the 2008 global financial crises led to a drop in GDP per capita from nearly 
US$21,000 in 2008 to US$15,000 in 2 009 before growth resumed in 2010.  The financial crises also 
hastened the collapse of an insu rance company, the CL Financial Group, which had two subsidiaries 
based in Trinidad and Tobago.  The government bail out of the two subsidiaries is expected to cost 
over 10% of GDP and resulted in relatively large fiscal deficits in 2009 and 2010.  Trinidad and 
Tobago has been able to weather these events because it has low pub lic-sector debt, adequate foreign 
exchange reserves and, up to 2009, it ha d been running large fiscal surpluses.   
3. Government policy has been, and remains, to encourage diversification away from 
dependence on the oil and gas sector.  Declining oil production and the low reserves-to-production 
ratio for both oil and gas make this policy essential and it is a central thrust of the Medium-Term 
Policy Framework 2011-14 (MTPF), which was issu ed in October 2011.  The policy focuses on the 
promotion of an environment for growth and competitiveness on a foundation of macroeconomic 
stability, strengthening the functioning of the lega l system, providing stable government, promoting 
savings and investment, making strategic interventi ons with public-sector spending (especially in 
social infrastructure projects), and high impact interventions in communities and job creation.   
4. However, the pace of reform in many areas has been slow.  At the time of the last Trade 
Policy Review of Trinidad and Tobago in 20 05, anti-dumping legislation was under review and 
safeguard legislation was being drafted but the new le gislation has still not been enacted.  A review of 
government procurement policy started in 2004 and le gislation is before parliament.  Although the 
Copyright (Amendment) Act was passed in 2008, le gislation in other intellectual property related 
areas has yet to be implemented.  New investment legislation, which was also being prepared at the 
time of the last Review, has yet to be enacted, although Trinidad and Tobago encourages foreign direct investment in all sectors and there are no rest rictions or disincentives to investment.  In the 
absence of a legislative and regulatory framework to attract investment outside the oil and gas sector 
is likely to be difficult. 
5. Other trade-related areas have seen some reform over the past few years.  Customs procedures 
have been improved with the adoption of ASYCUD A World and should coninue to improve with the 
introduction of electronic documentatin and a single electronic window in 2012.  The Caribbean 
Community Act of 2005, which provided for the implementation of the CARICOM Single Market, 
became operational in January 2006 and allowed for the free movement of people, capital, services, 
and goods as well as the right of establishment be tween member states. Th e single economy, which 
provides for harmonization of economic, investment, fiscal, and monetary policies, is expected to be fully implemented by 2015.  Furthermore, as a member of CARICOM, Trinidad and Tobago has 
signed bilateral agreements with Venezuela, Co lombia, the Dominican Republic, Costa Rica, and 
Cuba. Trinidad and Tobago also participates in the Cariforum-EU Partnership Agreement, and 
benefits from the Caribbean Basin Initiative with  the United States, CARIBCAN with Canada, the 
Generalized System of Preferences provided by so me developed countries, and the Global System of 
Trade Preferences.  WT/TPR/S/260 Trade Policy Review 
Page viii 
  
6. Trinidad and Tobago applies the CARICOM comm on external tariff to all imports of goods 
except to some items on List A, where tariffs may be below the CET, (mainly agriculture and 
petroleum products and some household goods) and some  on List C, where tariffs may be above the 
CET (mainly automobiles, some electrical appliances, precious metals, and some alcoholic 
beverages).  In general, tari ffs are well below the bound rates but, for 50 tariff lines in 2011 (up from 
44 in 2004), applied tariffs exceed the bound rates.  Specific duties are applied for another 27 tariff 
lines (mainly alcoholic beverages), although they are bound in ad valorem  terms, which means it is 
possible that on some occasions the applied tariff may exceed the bound rate.  On the other hand, the 
list of products subject to surcharges has been re duced and, in 2011, the only remaining surcharges 
were at 86% on fatty livers of geese or ducks, at 60% on beet, flavoured and coloured sugar,and 75% 
for icing sugar.   
7. In addition to VAT, which is applied on most goods and services at a rate of 15%, excise 
duties are applied on alcoholic beverages, tobacco  products, petrol, and diesel.  Excise duties are 
applied at specific rates that vary from one product to another and, in some cases, at rates that 
discrimate between substitutable goods , for example sparkling wine has a higher duty than other wine, 
and rum has a lower rate of duty than other distilled beverages. 
8. Agriculture remains a small and declining part of the economiy despite relatively high levels 
of support and the Government’s emphasis on the sect or to help diversifythe economy away from oil 
and gas.  Support is provided through a wide variety of measures, including border measures to 
maintain higher domestic prices; guaranteed prices  for some products; input subsidies; investment 
subsidies; and low interest loans.  To some extent the decline, at least since 2003, can be attributed to 
the reduction in the value of pref erential access to traditional markets, but the small size of farms, 
uncertain tenure for many farmers, the small domest ic market, and the decline in production of higher 
value crops like cocoa and coffee have also contri buted.  Whether changes to  policy, such as higher 
subsidies through the new Agricultural Incentive Programme and measures to address land tenure 
problems, succeed remains to be seen. 
9. The energy sector is responsible for nearly 90% of foreign investmentThe greatest challenge 
facing the oil and gas industry is the low level of reserves compared with production.  Current policy 
is focused on encouraging exploration and deve loping down-stream processing of oil and gas and 
petrochemicals.  Local participation in the oil and gas industry is officially encouraged.  The 
Permanent Local Content Committee was established in April 2004 and a policy framework published 
in October 2004.  The issue was also one of the ma in themes for the public consultations on energy 
policy held in early 2011. 
10. The services sector accounted for over 46% of GDP in 2010 and for 70% of employment, 
depicting low labour productivity. Services exports have declined in  recent years and stood at US$436 
million in 2010.   
11. Commercial banks are well capitalized and have conservative lending practices with little or 
no exposure to high-risk debt while operating a hi gh interest rate spread.  Thus, banks having 
remained profitable, albeit at a declining rate, a nd emerged relatively unscathed and stable in the post-
2008 financial crisis environment and the subsequent economic downturn.  New legislation enacted 
with respect to commercial banks has increased th e regulatory and supervisor y powers of the Central 
Bank, which may now conduct consolidated superv ision of all domestic banking groups as well as 
those with cross-border operations.  The legislation also required the restructuring of "mixed groups" 
(i.e. banking groups that offer commercial banking a nd other financial services) through the creation 
of a financial holding company, which would ring-fen ce each type of financial service in the group 
and would also be regulated by the Central Bank.   The Act also allows for information-sharing Trinidad and Tobago WT/TPR/S/260 
 Page ix 
 
 
between the Central Bank and othe r domestic and international regul atory bodies.  The commercial 
banking sector has also become more liberal, al lowing foreign financial institutions to conduct 
business in Trinidad and Tobago through licensed branches.   
12. On the other hand, Trinidad and Tobago was a ffected by the collapse of the CL Financial 
Group and its two subsidiaries, CLICO and BAT.  An  amendment to the Insura nce Act, made in 2009 
following the collapse, addressed shortcomings in  the legal framework by increasing reporting and 
statutory fund requirements.  The amendment also  gave the Central Bank authority to implement 
timely corrective action as well as authorizing info rmation-sharing among regulators.  Another new 
Insurance Bill is expected to be enacted shortl y and, according to the authorities, is based on 
international best practice for insura nce regulation and supervision.   
13. Tourism is an important sector of the economy although the number of visitors has declined 
since 2005, probably due to the economic slowdown in  the source countries of most tourists.  Tax-
based measures, such as accelerated  capital allowances, are the ma in measures used to encourage 
investment in tourism and are mostly open to fore igners and Trinidad and Tobago nationals.  Tourism 
has been identified as an avenue for diversificati on of the economy, as set out in 2010 in the National 
Tourism Polcy. 
14. As a small island state, transport services, partic ularly maritime transport and related services, 
are important to Trinidad and Tobago, and the au thorities have identified this as a high growth 
industry.  The Port Authority of Trinidad a nd Tobago has been resructured and its operations 
commercialized by setting up separate entities for car go handling in Port of Spain and infrastructure 
and inter-island ferry services.  The Ministry of  Works and Industry is currently working on 
amendments to existing legislati on to improve the legal framework. 
15. Trinidad and Tobago faces several challenges to  its continued development, and its main 
priorities are diversification and managing the d ecline in oil and gas production and exports.  
Although successive Governments have recognized th e need to diversify the economy, and several 
initiatives have been taken, the low level of reserv es relative to current production of oil and gas, and 
the increase in gas production in some countries mean s significant diversification is needed in the 
medium to short-term.  On the other hand, Trinidad and Tobago has many advantages, such as reasonably well developed infrastructure and effi cient government services.  Taking advantage of 
these and accelerating the pace of legal and instituta tional reform would help to achieve the goal of 
diversifcation to reduce dependen ce on production of oil and gas.