Trinidad and Tobago WT/TPR/S/260 
 Page 1 
 
 
I. ECONOMIC ENVIRONMENT 
1. Trinidad and Tobago is a high income devel oping country with GDP per capita of over 
US$15,500.  It has the largest economy in the Caribbean region and, with a population of 1.32 million, it is the third most populous CARICOM country.  Energy continues to be the dominant 
sector in the economy, accounting for over one-thir d of GDP, over three-quarters of merchandise 
exports and over half of government  revenue.  After growing for 15 years, Trinidad and Tobago was 
badly affected by the 2009 global fi nancial crisis, which led to a fall in energy prices, and by the 
collapse of the CL Financial Group (Chapter IV(3)(i)(b )).  Trinidad and Tobago was able to weather 
these events as the country had a la rge fiscal surplus, low public sector debt, and adequate foreign 
exchange reserves, all of which acted as important buffers.  In the aftermath of the global financial 
crisis, trade continues to play an important role, with total merchandise trade accounting for over 85% 
of GDP in 2010.  Despite the adverse impact of the global economic crisis, Trinidad and Tobago has 
not resorted to any protectionist trade measures.  It is also trying to improve trading conditions by 
making border procedures more efficient and by introducing the single electronic window and 
ASYCUDA World.   
2. During the period under review, real GDP growth  averaged over 4% annually but growth has 
been volatile due to international oil price fluctu ations (Table I.1).  Be tween 2005 and 2008 real GDP 
growth averaged 6.6% annually resulting in GDP per capita rising from approximately US$12,000 in 
2005 to nearly US$21,000 in 2008.  Unemployment declined to 3.9%.  However, the economy contracted in 2009 with per capita GDP falling to ju st over US$15,000 with modest growth in 2010.  
Real GDP growth is forecast to be 1.2% in 2011.
1  During the period under review, growth was driven 
by high oil prices up to 2008 and, in 2010, by distribution and restaurant services and government services (Table I.2).  
3. Labour productivity in the economy grew each year of the review period, peaking at nearly 
13% in 2009.  However, the rate of growth has declined since.  In recent years productivity growth 
has been led by the non-energy sector, particular ly the drink and tobacco sector and manufacturing 
and related products sector.  Labour productivity is highest in the energy sector followed by finance, 
insurance, real estate, and transport, storage, and co mmunication.  It is lowest in the agriculture sector. 
4. With limited reserves of hydrocarbons, further re form is needed to diversify the economy and 
the pace of reforms needs to increase.   The authorities have realized this and have made it central 
thrust to the new Medium-Term Policy Framewor k 2011-14 (MTPF), which was issued in October 
2011.
2   
5. Reforms in some areas have been slow.  Anti-dumping legislation was under review and 
safeguard legislation was being drafted in 2005 but new legislation has not been enacted in either 
case.  A review of government procurement policy st arted in 2004;  and non-legislation is still before 
parliament.  Although new copyright legislation h as been enacted, legislation in other intellectual 
property related areas, which has already been drafted,  has yet to be implemented.  Furthermore, only 
parts of the Fair Trading Act have been proclaimed. 
                                                      
1 Central Bank of Trinidad and Tobago (2011b). 
2 Government of Trinidad and Tobago (2011a). WT/TPR/S/260 Trade Policy Review 
Page 2 
  
Table I.1  
Selected macroeconom ic indicators, 2005-10  
2005 2006 2007 2008 2009 2010a 
National accounts 
Real GDP (TT$ million, at constant 2000 pr ices) 75,786 85,795 89,874  92,001 88,745 90,975 
Real GDP growth (annual % change) 5.8 13.4 4.8 2.4 -3.5 2.5 
Current GDP at market prices (TT$ million) 100,68
2 115,951 136,953 170,93
8 124,116 129,75
3 
Current GDP at market prices (US$ million) 16,069 18,461 21,736 27,323 19,702 20,440 
GDP per capita at market prices (US$) 12,413 14,223 16,679 20,879 15,038 15,512 
Prices and interest rates (%, unless otherwise indicated) 
Retail price index (end-of-period % change) 6.9 8.3 7.9 12.0 7.0 10.6 
Core retail price index (less food, end-of -period % change) 2.7 3.6 4.3 6.2 4.1 4.3 
Food price increase (end-of-period % change) 23.00 23.20 17.40 25.90 12.60 22.20 
Weighted average loan rate (end-of-period) .. 10.2 10.7 11.5 11.5 9.9 
Weighted average deposit rate (end-of-period) .. 2.4 1.8 3.1 1.4 0.9 
Exchange rate 
Exchange rate (TT$ per US$ mi d-point buying/selling, period 
average) 6.2658 6.2809 6.3009 6.2563 6.2997 6.3480 
Overall fiscal balance (fiscal year)b cData from Ministry of 
Finance (% of GDP, unless otherwise indicated) 
Total revenue and grants 30.7 34.7 30.4 35.0 28.7 32.5 
   Recurrent revenue 30.7 34.7 30.4 35.0 28.7 32.4 
      Tax revenue 27.6 31.3 27.0 31.8 24.0 27.4 
         Taxes on income and profits 20.9 24.5 20.6 25.4 17.7 20.4 
         Taxes on property 0.1 0.1 0.1 0.1 0.1 0.0 
         Taxes on goods and services 4.7 4.7 4.6 4.8 4.7 5.5 
         Other 0.3 0.4 0.2 0.2 0.1 0.1 
      Non-tax revenue 3.2 3.4 3.4 3.2 4.8 5.1 
      Of which 
         Royalty on oil 1.3 1.5 1.3 1.3 1.3 1.3 
         Non-financial enterp rises profits 1.0 0.8 0.6 0.4 1.1 1.1 
         Financial enterprises profits 0.2 0.2 0.6 1.0 0.8 0.7 
         Interest income 0.1 0.2 0.1 0.0 0.1 0.1 
         Administrative fees and charges 0.4 0.4 0.3 0.2 0.4 0.3 
   Capital receipts and gran ts 0.0 0.0 0. 0 0.0 0.0 0.0 
Total expenditure and net lending 28.2 33.1 30.2 33.2 33.7 35.4 
   Recurrent expenditure 25.2 28.7 23.6 26.9 27.0 29.1 
      Wages and salaries 5.5 4.9 4.7 4.3 4.9 5.4 
      Goods and services 3.3 3.4 3.3 3.1 4.4 5.4 
      Interest payments 2.6 2.2 2.0 1.8 2.6 3.0 
      Subsidies and transfers 13.8 18.3 13.6 17.7 15.1 15.3 
   Capital expenditure and ne t lending 3.0 4.3 6.6 6.2 6.7 6.3 
Overall balance 2.5 1.6 0.2 1.8 -4.9 -2.9 
Overall fiscal balance (fiscal year)b Data from IMF, Art. IV Consultation 
Revenue 30.7 34.7 30.4 35.0 28.4 32.5 
   Taxes on international trade 1.6 1.7 1.6 1.4 1.3 1.3 
   Energy 16.7 22.7 18.0 20.9 14.2 17.0 
   Non-energy 14.0 12.0 12.5 14.1 14.2 15.4 
Expenditure 25.0 27.8 26.4 27.5 34.0 35.4 
   Current 22.1 23.7 20.5 21.6 27.7 29.6 
      Wages and salaries 5.5 4.9 4.7 4.3 4.9 5.4 
      Goods and services 3.3 3.4 3.3 3.1 4.4 5.4 
      Interest payments 2.6 2.2 2.0 1.8 2.6 3.0 
Table I.1 (cont'd) Trinidad and Tobago WT/TPR/S/260 
 Page 3 
 
 
2005 2006 2007 2008 2009 2010a 
      Transfers and subsidies 10.7 13.3 10.5 12.4 15.8 15.9 
   Capital expenditure and ne t lending 2.9 4.1 5.9 5.9 6.3 5.8 
Non-energy balance -11.0 -15.9 -14.0 -13.4 -19.8 -20.0 
Overall balance 5.7 6.9 4.0 7.5 -5.6 -3.0 
Overall balance including CLICO .. .. .. .. -7.0 -5.6 
Saving and investment 
Gross domestic savings .. .. .. .. . .. 
External sector 
Current account balance 26.4 25.8 24.8 32.2 8.2 18.8 
Net merchandise trade 24.5 28.5 26.3 33.2 11.2 23.0 
   Merchandise exports 60.1 65.5 61.6 68.4 46.6 54.8 
   Merchandise imports 35.6 37.1 35.3 35.2 35.4 31.8 
Services balance 4.0 2.1 2.6 2.2 1.9 2.1 
Capital and financial account -14. 6 -16.9 -17.7 -22.3 -11.8 -16.7 
   Direct investment 3.7 2.8 3.8 6.8 3.6 2.7 
Overall balance 11.8 8.9 7.1 9.9 -3.6 2.0 
Terms of trade (% change) 1.8 -2.1 -0.8 2.1 -0.5 -0.1 
Net international reserves (US$ milli on) .. 5,118 6,659 9,364 8,652  9,069 
Gross official reserves (US$ million)d 3,871 5,120 6,660 9,365 8,653 9,103 
   in months of imports of goods and servicesd 7.4 8.9 9.9 11.3 14.3 14.2 
Central government external debt (US$ m illion) .. 1,258 1,313  1,488 1,497 1,525 
   in % of GDP .. 6.8 6.0 5.4 7.6 7.5 
.. Not available. 
a Provisional. 
b Fiscal year data from Octobe r (year-1) to September (year). 
c Calculations based on fiscal year GDP from the IMF. 
d International Monetary Fund (IMF), 2010 Article IV Consultation - Staff report. 
 
Source : Central Bank, Statistical Di gest June 2011 Vol. XI No.1, and online in formation available at:  http://www.central-
bank.org.tt/content/data-centre;  Central Statistical Office, online information, available at:  
http://www.cso.gov.tt/Pages/d efault.aspx;  Ministry of Fina nce, information available at:  
http://www.finance.gov.tt/publ ications.php?mid=3;  and Internationa l Monetary Fund (IMF), 2010 Article VI 
Consultation - Staff report. 
6. Under the MTPF, the authorities have identified seven pillars for sustainable growth:  people-
centred development; poverty eradication and soci al justice; national and personal security;  
development of information an d connections technologies;  building a more diversified 
knowledge-intensive economy;  good governance; and foreign policy.  The Government aims to 
optimize returns from the oil and gas sector, including diversification within the sector and to "continue to strengthen the foundations of the econo my, diversify and restructure it, and establish a 
formidable IT platform.  As such the focus of  the medium-term economic strategy will be on the 
promotion of an environment conducive for gr owth and competitiveness on a foundation of 
macroeconomic stability;  by strengthening the functi oning of the legal system;  by providing stable 
government;  by promoting savings and investment;  by making strategic interventions with public 
sector spending, especially in social infrastruct ure projects and high impact interventions in 
communities and job creation."
3   
                                                      
3 Government of Trinidad and Tobago (2011a). WT/TPR/S/260 Trade Policy Review 
Page 4 
  
Table I.2  
Basic economic and social indicators, 2005-10  
2005 2006 2007 2008 2009 2010a 
GDP by economic activity (constant 2000 
prices) (TT$ million) 
Petroleum industry 29,651 36,103  36,710 36,627 37,582 38,625 
  Exploration and production 17,208 20,029 20,305 20,059 20,418 21,066 
  Refining (including Atlantic LNG) 6,531 9,209 9,524 10,013 10,726 10,908 
  Petrochemicals 3,637 4,193 4,095 3,980 4,326 4,497 
  Service contractors 646 894 901 668 267 198 
  Distribution 1,613 1,756 1,855 1,878 1,828 1,929 
  Asphalt production 16 22 29 29 18 28 
Non-petroleum industry 45,900 48,693 52,389 54,614 50,663 50,688 
Agriculture 434 390 475 511 353 478 
  Export agriculture 28 6 8 7 5 5 
  Domestic agriculture 379 317 337 340 316 319 
  Sugar: 28 68 131 164 32 155 
        Sugar refineries -116 -115 -114 -113 -116 0 
        Cane farming a nd cultivation 52 47 19 2 2 2 
        Distilleries  92 135 226 275 147 153 
Manufacturingb 5,685 6,298 7,326 7,509 7,381 7,603 
  Food, beverages and tobacco 2, 496 2,573 3,150 3, 414 3,608 3,633 
  Textile, garments and foot wear 123 131 134  165 169 182 
  Printing, publishing etc. 579 696 830 803 718 658 
  Wood and related products 168 138 173 159 115 104 
  Chemicals and non-metallic minerals 1,064 1,245 1,315 1,244 1,206 1,256 
  Assembly type and related industrie s 1,049 1,247 1,398 1,418 1,327 1,508 
  Miscellaneous manufacturing 205 269 327 307 238 262 
Electricity and water 1,160 1,155 1,231 1,267 1,271 1,272 
Construction and quarrying 6,210 6,598 7,069 7,386 6,828 6,408 
Services 32,411 34,253 36,289 37,941 34,831 34,928 
 Distribution and restaurantsc 9,103 10,480 10,829 11,890 9,370 9,078 
 Hotels and guest houses 321 257 258 212 186 157 
 Transport, storage and communication 5,865 6,134 6,503 6,746 6,746 7,076 
 Finance, insurance, real estate, etc. 10,465 10,568 11,670 12,098 11,528 11,637 
 Government 4,032 3,971 4,099 4,168 4,097 4,005 
 Education and cultural services 1,653 1,774 1,787 1,734 1,762 1,783 
 Personal services 973 1,069 1,144 1,093 1,141 1,192 
FISIMd -2,339 -2,670 -3,163 -3,072 -3,079 -2,848 
Add: Value added tax  (VAT) 2,573 3,669 3,939 3,832 3,579 4,510 
Share of sectors in GDP at current prices (%) 
Petroleum industry 45.9 47.0 45.0 49.1 35.8 35.7 
  Exploration and production 24.1 27.8 24.1 27.9 20.3 20.3 
  Refining (including Atlantic LNG) 8.9 7.0 7.5 7.6 6.5 5.7 
  Petrochemicals 7.0 7.2 7.0 6.8 4.5 5.8 
  Service contractors 3.0 3.1 3.1 2.4 2.4 1.5 
  Distribution 3.0 1.9 3.2 4.2 2.1 2.3 
  Asphalt production 0.0 0.1 0.1 0.1 0.1 0.1 
Non-petroleum industry 54.0 52.4 54.5 50.4 64.6 63.3 
Agriculture 0.5 0.6 0.4 0.4 0.6 0.6 
  Export agriculture 0.0 0.0 0.0 0.0 0.0 0.0 
  Domestic agriculture 0.5 0.4 0.4 0.3 0.4 0.4 
  Sugar: 0.0 0.2 0.0 0.0 0.1 0.1 
Table I.2 (cont'd) Trinidad and Tobago WT/TPR/S/260 
 Page 5 
 
 
2005 2006 2007 2008 2009 2010a 
        Sugar refineries 0.0 0.1 0.0 0.0 0.0 0.0 
        Cane farming and cultivation 0.0 0.0 0.0 0.0 0.0 0.0 
        Distilleries 0.0 0.1 0.0 0.0 0.1 0.1 
Manufacturingb 5.5 5.6 5.3 4.3 4.9 5.3 
  Food, beverages and tob acco 2.0 2.1 2. 0 1.9 2.6 2.6 
  Textile, garments and foot wear 0.1 0.1 0. 1 0.1 0.1 0.1 
  Printing, publishing etc. 0.6 0.6 0.6 0.4 0.5 0.6 
  Wood and related products 0.2 0.1 0.1 0.1 0.1 0.1 
  Chemicals and non-metallic mine rals 1.3 1.3 1. 1 1.0 1.1 1.1 
  Assembly type and related industries 1.0 1.1 1.1 0.6 0.2 0.6 
  Miscellaneous manufacturing 0.2 0.2 0.3 0.2 0.2 0.2 
Electricity and water 0.9 0.8 1.1 0.9 1.4 1.3 
Construction and quarrying 7.4 7.4 8.3 8.5 11.0 9.9 
Services 39.7 38.0 39.5 36.4 46.7 46.2 
 Distribution and restaurantsc 11.9 13.0 12.4 12.4 14.5 14.2 
 Hotels and guest houses 0.4 0.4 0.3 0.2 0.3 0.2 
 Transport, storage and communication 5.6 3.6 5.6 4.5 5.6 5.9 
 Finance, insurance, real esta te, etc. 11.6 11.5 11.4 9.1 12.3 11.5 
 Government 6.6 6.0 6.6 7.3 9.9 10.2 
 Education and cultural services 2.6 2.4 2.2 2.1 2.8 2.8 
 Personal services 1.1 1.1 1.1 0.9 1.3 1.3 
FISIMd -2.9 -3.2 -3.4 -3.0 -4.4 -4.2 
Add: Value added tax  (VAT) 3.1 3.7 3.9 3.5 4.0 5.2 
Memorandum items: 
Life expectancy at birth (years) 69 69 69 69 70 .. 
Infant (-5) mortality rate per '000 live births 29 29 28 28 28 27 
Population (thousands) 1,294 1,298 1,303 1,309 1,310 1,318 
.. Not available. 
a Provisional. 
b Excludes oil refining and petrochemical industries. 
c Excludes distribution of petroleum products. 
d Financial Intermediation Services Indirectly Measured. 
Source : Central Statistical O ffice, National Income Division.  Available at :  http://www.cso.gov.tt/ Pages/default.aspx. 
(1) R ECENT ECONOMIC DEVELOPMENTS  
(i) Macroeconomic indicators 
7. Total government revenue continues to be highl y dependent on the petroleum sector.  As 
such, government revenue as a proportion of GDP has fl uctuated with global oil prices.  After peaking 
at 35% of GDP in 2008, total revenue declined to 32.5% of GDP in 2010.  Total expenditure and net 
lending as a proportion of GDP grew steadily, from 28% of GDP in 2005 to over 35% in 2010.  As a 
consequence, a fiscal surplus of 2.5% of GDP in 2005 turned into a deficit of nearly 5% in 2009 
before declining to a deficit of nearly 3% of GDP in 2010.   
8. The collapse of the insurance company CLICO in 2008 and the costs to the Government of 
addressing the financial and economic crises were estimated to be over 12% of GDP (Chapter 
IV(3)(i)(b)).  If these costs were taken into account th e deficit would be significantly higher.  In light 
of depleting energy reserves, the non-energy defi cit which nearly doubled from 11% of GDP in 2005 WT/TPR/S/260 Trade Policy Review 
Page 6 
  
to 20% of GDP in 2010, is an even greater source of concern.  As a result, public sector debt as a 
percentage of GDP, which had reached a low of 23% in 2008, is projected to be nearly 50% in 2011.4 
9. The Government has continued its efforts to increase tax revenue through better tax 
administration and compliance.  Furthermore, to  increase revenue collection the Government has 
offered a tax amnesty for years of income up to and including 2009.  
10. Recent expenditure growth has been driven by  increased public sector wage expenditure and 
increased subsidy payments in respect of the inte r-island ferry service and the petroleum subsidy.  
Capital expenditure is expected to continue ri sing as the Government implements its policy of 
diversification.5  
11. Exchange rate stability is one of the objectives of monetary policy in Trinidad and Tobago. 
The Central Bank intervenes in the foreign exchange  market to maintain stability, resulting in the 
Trinidad and Tobago dollar being de facto  pegged to the U.S. dollar.  During the period under review, 
the nominal exchange rate fluctuated slightly , between TT$6.25/US$ and TT$6.35/US$.  However, 
the real effective exchange rate appreciated due to  higher domestic inflation relative to Trinidad and 
Tobago's major trading partners.  This appreciation implies that Trinidad and Tobago's exports have 
become less competitive.6  
12. Inflation as measured by the retail price index (R PI) peaked at 12% in 2008 due to rising food 
prices, which are responsible for 18% of the cons umer basket, and which rose by over 25% in 2008.  
As demand eased off in 2009 due to a contraction in  the economy the RPI declined.  However, in 
2010, food prices rose by over 39% due to a drought in the country, while transport costs increased by 
12%.  As food prices declined, inflation eased in  2011, and was at 2.7% for January-August 2011.7  
13. High global oil prices between 2005 and 2008 fu elled capital inflows into Trinidad and 
Tobago, resulting in excess liquidity in the banking system and rising inflation.  In response, the Central Bank pursued a tight monetary policy to dampen credit growth and curtail inflationary 
pressures.  The global financial crisis in 2008 r esulted in the economy going into a recession.  As a 
consequence the Central Bank has maintained an  accommodative monetary policy since March 2009, 
which is geared towards stimulating economic activ ity and supporting growth.  However, despite the 
easing of monetary policy and lower bank lending rat es, private sector credit has not picked up.  It 
appears that banks' lending criteria have become stri cter and a general lack of confidence persists in 
the business sector resulting in subdued credit demand by the private sector.
8 
(ii) Heritage Stabilisation Fund 
14. In 2000, the Government created the Interim Revenue Stabilisation Fund (IRSF) to provide a 
cushion against any unexpected drop in petroleu m prices and strengthen the public sector savings 
effort.  At the time of the last Review, the fund w as awaiting formal establishment.  The Heritage and 
Stabilisation Fund (HSF) was created in 2007through the passage of the HSF Act;  it replaced the ISRF and all funds held in the latte r were transferred to the new fund. 
15. The objectives of the HSF are to invest surplus petroleum revenues so that public expenditure 
can be maintained when prices of crude oil and gas fall, and to provide a heritage for future 
                                                      
4 IMF (2011a). 
5 IMF (2011a). 
6 Central Bank of Trinidad and Tobago (2011a). 
7 Government of Trinidad and Tobago (2011b). 
8 Government of Trinidad and Tobago (2011b). Trinidad and Tobago WT/TPR/S/260 
 Page 7 
 
 
generations.  Deposits to the fund are made on a quart erly basis.  If petroleum revenues in any quarter 
are 10% greater than the estimated revenues for th at quarter in U.S. dollar terms, the excess is 
automatically deposited in the fund.  If the excess re venue is less than 10% of the estimated revenue, 
then the Minister of Finance may issue a directiv e for any part of the excess revenue to be deposited 
in the fund.  At end-March 2011, the HSF had a net asset value of US$ 3.8 billion and a quarterly 
income of US$ 46 million.9 
16. On the other hand, if the realized annual petr oleum revenue is 10% less than the estimated 
annual petroleum revenue, then 60% of the shortfall or 25% of the credit balance of the fund at the 
beginning of the year, whichever is less, may be withdrawn from the fund.10 
(iii) Balance of payments  
17. Trinidad and Tobago's current account surplu s decreased from US$4.2 billion in 2005 to 
US$3.8 billion in 2010 (18.8% of GDP), reflecti ng a narrowing of the gap between gross national 
savings and gross domestic investment (Table I.3) .  The current account surplus had peaked at over 
30% of GDP in 2008 on the back of rising internati onal oil prices.  The decline since then has come 
about due a decline in the trade surplus and reduc ed services receipts.  The latter declined due to 
lower insurance receipts, owing to the collapse of  Colonial Life Insurance Company and BAICO and 
an increase in investment income outflows on account  of repatriation of dividends and profits by 
petro-chemical companies.  On the other hand, th e trade surplus more than doubled between 2005 and 
2008 due mainly to rising international commodity  prices, but fell in 2009 as commodity prices 
declined. 
Table I.3  
Balance of payments, 2005-10  
(US$ million) 
2005 2006 2007 2008 2009 2010 
Current account 4,239.0 4,757.5 5,380.9 8,791.9 1,614.1 3,842.0 
   Merchandise 3,938.5 5,257.5 5,721.4 9,064.4 2,202.1 4,700.6 
      Exports 9,663.1 12,100.2 13,391.3 18,686.4 9,175.2 11,204.2 
      Imports 5,724.6 6,842.7 7,669.9 9,622.0 6,973.1 6,503.6 
   Services 644.0 389.0 565.4 614.4 381.7 435.7 
      Transport 155.6 114.5 117.5 89.3 85.3 103.2 
      Travel 353.0 197.4 369.4 321.6 261.4 323.4 
      Communication 29.4 28.3 32.5 24.4 18.2 18.4 
      Insurance 174.3 133.0 139.6 217.9 83.3 59.4 
      Other government -56.0 -66.4 -73.5 -44.8 -42.1 -6.8 
      Other services -12.3 -17.8 -20.1 6.0 -24.4 -61.9 
   Income -396.5 -935.8 -963.7 -897.1 -996.7 -1,348.7 
      Investment income -396.5 -935.8 -963.7 -897.1 -996.7 -1,348.7 
      Compensation of employees 0.0 0.0 0.0 0.0 0.0 0.0 
   Transfers 53.0 46.8 57.8 10.2 27.0 54.4 
      Private 48.9 44.8 53.8 8.8 19.7 12.0 
      Government 4.1 2.0 4.0 1.4 7.3 42.4 
Capital and financial flows -2,345.9 -3,112.4 -3,847.7 -6,086.3 -2,326.7 -3,423.6 
   Capital transfers 0 0 0 0 0 0 
   Official borrowing a -65.9 -39.5 176.8 41.9 -50.3 178.8 
   Official loans b 0 0 0 0 0 0 
Table I.3 (cont'd) 
                                                      
9 Information provided by the authorities. 
10 Ministry of Finance online information.  Viewed at.  www.finance.gov.tt. WT/TPR/S/260 Trade Policy Review 
Page 8 
  
2005 2006 2007 2008 2009 2010 
   State enterprise borrowing -10.7 -10.7 -10.5 -10.7 -10.1 -10.4 
   Direct investment 598.7 512.7 830 1858.4 709.1 549.4 
   Portfolio investment -23.8 -28.1 -25.7 -86.5 -62.9 -67.3 
   Commercial banks 61.7 -844.6 88.2 -42.2 -675.2 -835.4 
   Other capital flows c -2905.9 -2702.2 -4906.5 -7847.2 -2237.3 -3238.7 
Overall balance 1,893.1 1,645.1 1,533.2 2,705.6 -712.6 418.4 
a Includes all disbursements and amorti zations of the central Government. 
b Refers to government lendi ng to international bodies. 
c Includes all other public and private sector capital flows, ne t errors and omissions, regional bonds issued and changes to th e 
Heritage and Stabilization Fund.  Data in the merchandise account for 2006 are provisional.  The new SDR allocations are 
included in this item, for the third quarter of 2009. 
Source:  Central Bank of Trinidad and Tobago, Table J7, Statisti cal Digest, June 2011, Vol. XI No.1.  Viewed at:  
http://www.central-bank.org.tt/conten t/online-statisti cal-publications. 
18. The capital and financial account deficit incr eased from US$2.3 billion to US$3.4 billion in 
2010.  The deficit rose due to increased commercial bank and other outflows.  As a result of the 
current account surplus declining and the capital an d financial account deficit increasing, the overall 
balance-of-payments surplus dec lined from nearly US$2 billion in 2005 to slightly over 
US$ 400 million in 2010.  Gross official reserves continued to rise, from US$3.9 billion in 2005 to over US$9 billion in 2010, representing over 14 months of import cover.  
(2) D
EVELOPMENTS IN TRADE AND FOREIGN DIRECT INVESTMENT  
19. In 2010, the share of merchandise exports in GDP was nearly 55%, down from over 60% in 
2005.  However ,in 2008, exports we re equivalent to over 68% of GDP.  The share of merchandise 
imports also declined during the review period from over 35% of GDP in 2005 to 32% of GDP in 
2010.  Furthermore, the services balance was nearly  halved from 4% of GDP in 2005 to 2.1% of GDP 
in 2010.   
(i) Composition of trade 
20. Despite efforts to diversify the economy, the dominance of fuels in Trinidad and Tobago's 
exports increased during the review period.  In 20 09, fuels accounted for nearly 76% of merchandise 
exports up from 71% in 2005 (Chart I.1), while the share of manufactures declined.  The decline was due mainly to lower exports of chemicals (Table AI .1), due to the collapse of international methanol 
prices.  However, within manufactures, exports of other transport equipment, such as special-purpose 
vehicles and floating docks increased during the review period. 
 Trinidad and Tobago WT/TPR/S/260 
 Page 9 
 
 
Chart I.1
Merchandise trade, by product, 2005 and 2009
2005 2009
(a)    Ex ports and re-ex ports (f.o.b. )
Total: US$9,611 million
(b)    Im ports (c.i.f.)
Manufactures
51.1%
Total: US$5,694 million Total: US$6,955 million
Source: UNSD, Comtrade database (SITC Rev.3).Total: US$9,126 millionIron and 
steel
3.6%Iron and steel
3.5%
Crude oil
15.1%Other 
agriculture
0.1%Other manuf.
2.2%
Machinery
1.4%
Agriculture
3.3%Chemicals
19.0%Food
3.2% Other agriculture
0.1%
Crude oil
12.1%Other mining
26.0%Chemicals
9.6%Other manuf.
1.9%
Natural gas,
liquefied
40.7%Mining
78.8%Agriculture
3.2%
Mining
70.6%
Other 
agriculture
0.6%
Chemicals
7.3%Other semi-
manuf.
6.8%Machinery & 
transport 
eqpt.
26.4%Other 
manuf.
6.4%
Other mining
4.3%Fuels
34.8%Food
9.0%
Chemicals
7.8%Other 
agriculture
0.5%Food
10.1%
Agri.
10.6%
Manufactures
53.4%Mining
35.7%Agri.
9.6%
Mining
39.1%Fuels
32.9%
Other mining
2.8%Other semi-
manuf.
6.8%Machinery & 
transport eqpt.
27.6%Other 
manuf.
6.1%Other
0.3%Food
3.1%
Manuf.
26.2%Manuf.
17.9%
Other mining
35.0%Machinery
2.9%
Other
0.2%Natural gas,
liquefied
20.5%
Iron and 
steel
4.2%Iron and 
steel
5.1%
 
 WT/TPR/S/260 Trade Policy Review 
Page 10 
  
21. The share of primary products in total merc handise imports declined slightly between 2005 
and 2009, from nearly 49% to 46%.  Within prim ary imports, the share of agriculture and food 
imports rose, while the share of fuel imports declined , due to international commodity price changes.  
On the other hand, the share of manufactures in  total merchandise imports rose due mainly to 
increased imports of power generating machines, gas generators, heat exchange  units, and air and gas 
liquefiers (Table AI.2).  
(ii) Direction of trade 
22. The United States remains Trinidad and Tobago' s largest import supplier followed by the EU 
and Colombia. During the period under review, the U.S. share increased sli ghtly, as did those of 
Colombia and Asia as a whole.  The shares of the Russian Federation and Gabon showed significant 
increases, due to crude oil imports for refining in Tr inidad and Tobago.  On the other hand the shares 
of CARICOM, EU27, Brazil, and Nigeria declined (Chart I.2 and Table AI.3).   
23. Trinidad and Tobago's main export destination in 2009 continued to be the United States 
followed by CARICOM and EU27.  During the period u nder review, the shares of the United States 
and CARICOM declined.  The decline in products  exported to CARICOM, was due to a fall in 
petroleum exports.  In contrast, the share of EU 27 doubled, and that of Asia as a whole also rose 
(Table AI.4). The authorities stated that  th e doubling of the EU27 share was due to the trade 
expansion that resulted from the signing of the Cariforum-EU Partnership Agreement.   
(iii) Foreign direct investment 
24. During the period under review, foreign direct i nvestment (FDI) inflows have been volatile.  
They peaked at over US$3 billion in 2008, but have  since been declining and were US$550 million in 
2010.11  The spike in FDI in 2008 was due to the acquisition of RBTT financial group by the Royal 
Bank of Canada. 
25. The stock of FDI as a proportion of GDP has also shown volatility, declining from nearly 
80% of GDP in 2005 to 62% in 2008, before increasing again to approximately 80% in 2010.  The petroleum sector has been the main recipient of FDI
12.  However, under the new investment policy the 
Government is encouraging investment in info rmation and communication technology, downstream 
energy sector, services, yachting, fish and fish processing, merchant marine, printing and packaging, music and entertainment, film industry,  and the food and beverage industry.
13  The largest investor in 
Trinidad and Tobago is the United States followed by the United Kingdom.14 
 
                                                      
11 UNCTAD (various years), World Investment Report .  Viewed at:  www.unctad.org. 
12 The Energy sector is responsible for approximately 90% of inward FDI.  
13 Investment opportunities in Trinidad and To bago.  Viewed at:  http://www.investtnt.com/ 
1content/en/1tsectors.aspx. 
14 In 2010, 66% of inward FDI came  from the US and 21% from the UK. Trinidad and Tobago WT/TPR/S/260 
 Page 11 
 
 
Chart I.2
Merchandise trade, by main origin and destination, 2005 and 2009
2005 2009
(a)    Ex ports and re-ex ports (f.o.b. )
Total: US$9,611 million
(b)    Im ports (c.i.f.)
Total: US$5,694 million Total: US$6,955 million
Source: UNSD, Comtrade database (SITC Rev.3).Suriname
2.3%
Total: US$9,126 millionJamaica
7.5%Others
1.4%
United States
58.6%
Jamaica
5.2%Other 
America
18.9%
Africa
11.7%
Colombia
5.6%Africa
12.9%Asia
0.1%
America
79.8%United States
54.4%Barbados
4.3%Other America
15.2%
CIS
0.4%EU (27)
14.3%Other Europe
0.2%Asia
3.6%Others
2.1%
America
91.6%
United States
29.2%
Brazil
13.5%Other America
13.7%EU (27)
11.9%Other Europe
0.7%Japan
3.9%China
3.0%Other 
Asia
4.1%Others
0.2%
United States
31.0%
Colombia
9.9%
Other 
America
7.1%EU (27)
11.4%Other Europe
0.7%Japan
2.0%
China
5.1%Other 
Asia
6.2%Others
0.1%
America
62.9%America
55.0%EU (27)
6.9%
Barbados
3.0%Suriname
2.0%
Mexico
0.9%Brazil
5.1%
Mexico
1.9%Europe
14.5% Europe
6.9%
Europe
12.6%Asia
11.0%Asia
13.3%
CIS
7.8%Europe
12.1%