Trinidad and Tobago WT/TPR/S/260 
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IV. TRADE POLICIES BY SECTOR 
(1) AGRICULTURE  
(i) Features 
1. Agriculture in Trinidad and Tobago has been in  relative decline for many years and, in 2010, 
accounted for about 0.6% of GDP and less than 4% of employment, indicating the relatively low 
productivity found in this sector.  Agriculture (W TO definition) accounts for about 3.3% of total 
exports and 13.7% of non-oil exports but it is co ncentrated in a few products, most of which are 
processed products rather than agricultural commoditi es.  Traditionally, the principal crop was sugar 
cane which was grown for export under preferences to  the European Union a nd the United States.  
However, production and exports have declined shar ply since the early 2000s and sugar has not been 
refined in Trinidad and Tobago since the closur e of the state-owned Sugar Manufacturing Company 
Limited in April 2010.   
2. About half of all agricultural land in Trinidad  and Tobago is owned by the state, including 
national parks, with large areas leased for agricultu ral activities.  However, production is primarily on 
small family farms:  in 2004 there were nearly 19,000 holdings covering approximately 85,000 ha, 
practically all of which being worked by the occupiers of the holdings.  Very few holdings were 
bigger than 10 ha and only a handful larger than 100 ha.  Two holdings with a total of over 27,000 ha 
were owned by a state enterprise (Caroni (1975) Ltd)  and 19 holdings of 1,600 ha in total owned by 
the Government.  Reflecting agriculture's dimini shing role in the economy, the number of farm 
holdings fell by over 37% between the 1982 and 2004 agriculture censuses.1  Among the reasons 
noted for the decline in agricultu re were the effect of petroleu m development, leading to labour 
shortages and low returns for farming.2  
3. Most of the land used for farming in Trinid ad and Tobago is for crops, but production of 
traditional crops like cocoa beans and coffee all declin ed to current levels several years ago, with 
sugar production following suit in the early 2 000s.  Production has increased for some products, 
particularly for chicken and pig meat, as well as fo r pineapples and other fresh fruit.  The value of 
chicken meat production now represents over half th e total value of agricultural production (Chart 
IV.1 and Table AIV.1).  Agricultural production in Trinidad and Tobago is now concentrated in a 
small number of products with ch icken meat, sugar cane and fruit ma king up over 80% of the value of 
production.3 
(ii) Trade 
4. The main exports of agricultural goods (WTO definition) are not commodities but processed 
products led by sweetened or flavoured wate r (HS2202), cigarettes (H S2402) and baked bread 
(HS1905) (Table IV.1).  In many cases, such as t obacco, the raw material is imported and processed 
and the transformed product (cigarettes) exported. 
5. Some sugar is still expor ted but the value of exports declined to US$2.2 million in 2009 from 
US$37 million in 2006 with exports going to other Caribbean countries rather than the traditional 
European or U.S. markets.  The destination for other exports also  depends on the product.  Liqueurs 
                                                      
1 Central Statistical Office (2005), 2004 Agricultural Census, Port of Spain. 
2 FAO (2005), CARICOM/CARIFORM Preparation of Nationa l Medium-term Investment Programmes 
and Formulation of Bankable Investment Project Profiles, Progress Status &Preliminary Findings.  Viewed at:  
ftp://ftp.fao.org/sids/caricom.pdf [August 2011]. 
3 FAOStat online database.  Viewed at:  http://fao stat.fao.org/site/291/defau lt.aspx [August 2011]. WT/TPR/S/260 Trade Policy Review 
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and spirits (mostly rum) and beer are exported th roughout the world, while flavoured beverages, 
cigarettes and others exported to other Caribbean countries.  
 
 
Table IV.1 
Top 10 exports of agricultural products + sugar  
(US$ millions) 
HS Code  Commodity Description  2003 2004 2005 2006 2007 2008 2009 
2202  Waters, sweetened or flavoured beverages  40.3 41.6 57.0 61.1 55.4 56.4 56.3 
2402  Cigars, cigarettes etc. 15.1 14.2 22.8 27.4 32.8 58.2 42.3 
1905  Baked bread, pastry, wafers, et c. 17.5 15.4 21.1 22.5 31.0 34.9 33.4 
2208  Liqueur, spirits and undenatured ethyl al cohol <80%  33.0 16.0 31.0 29.7 40.6 26.6 21.0 
2009  Fruit and vegetable juices, not fermente d or spirited  5.4 13.3 16.3 22.5 28.3 20.6 17.5 
2207  Ethyl alcohol, undenatured > 80%  0.1 0.1 19.6 27.8 27.8 113.1 13.7 
2203  Beer made from malt  7.7 6.1 9.4 11.0 11.1 12.2 12.8 
1904  Cereal food (roasted, swelled) not maize 14.1 15.1 19.6 21.7 16.5 17.8 10.3 
2103  Sauce, condiments, seasoning, mustard  7.2 5.4 7.4 8.1 9.1 10.3 10.2 
2008  Fruit, nut, edible plant parts nes, prepared/preserved  4.9 5.0 6.3 8.1 8.9 10.7 8.6 
1701  Solid cane or beet sugar and chemically pure sucrose  13.3 29.2 26.8 37.5 20.6 4.9 2.2 
 Other  66.7 64.4 77.0 67.1 77.6 109.3 72.7 
 Total  225.2 225.7 314.3 344.5 359.7 475.1 301.1 
Source:  UNSD Comtrade. 
6. As a small island state with a small agriculture sector, Trinidad and Tobago imports most of 
its food and other agricultural products.  Thus, impor ts of agricultural goods into Trinidad and Tobago Trinidad and Tobago WT/TPR/S/260 
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are broadly spread across different product groups (Table IV.2).  The main import is undenatured 
ethyl alcohol with alcoholic strength greater th an 80% (HS 2207).  It has been reported that a 
significant portion of this is imported from Brazil, processed and exported to the United States at preferential tariffs under the Caribbean Basin Initiative.
4  Other imports include raw materials and 
animal feed, along with food. 
Table IV.2 
Top 10 imports of agricultural products  
(US$ millions) 
HS Code  Commodity Description  2003 2004 2005 2006 2007 2008 2009 
2207  Ethyl alcohol, undenatured > 80% 7.7 3.0 21.0 71.6 71.6 162.0 49.8 
2106  Food preparations not elsewhere specified  20.9 23.5 43.4 31.6 31.6 39.3 43.5 
1001  Wheat and meslin.  16.4 19.1 24.3 43.1 43.1 47.5 42.4 
2309  Preparations used in animal feeding.  20.2 25.7 23.1 34.1 34.1 53.8 36.3 
0402  Milk and cream, concentrated or sweetened 23.6 26.9 26.7 40.4 40.4 50.1 35.0 
1701  Cane or beet sugar 19.1 24.5 31.2 37.1 37.1 29.9 34.4 
1901  Malt extract; food preparations of flour, groats, meal, 
starch or malt extract 10.4 12.7 13.0 17.7 17.7 24.0 24.9 
0406  Cheese and curd.  12.4 18.0 18.3 23.7 23.7 29.6 24.8 
1005  Maize  10.3 13.3 14.9 21.8 21.8 37.8 24.2 
2202  Waters, sweetened or flavoured beverages  6.4 6.5 12.9 18.7 18.7 20.1 19.9 
2009  Fruit juices  11.9 12.1 15.5 24.2 24.2 22.6 16.6 
1006  Rice  10.7 12.6 12.9 13.5 13.5 23.8 16.5 
 Other 204.9 218.7 261.2 296.6 296.6 395.2 360.4 
 Total  375.0 416.5 518.5 674.1 674.1 935.7 728.8 
Source:  UNSD Comtrade. 
(iii) Agriculture policies 
7. Agriculture policy is the responsibility of the Mi nistry for Food Production, Land and Marine 
Affairs (MFPLMA).  In addition, there are sev eral other agencies which are responsible for 
implementing policy and/or advising the Ministry, including: 
 The National Agriculture Marketing and De velopment Corporation (NAMDEVCO) which 
provides marketing price information to farmers as well as facilities and services to aid 
domestic trade and exports;5   
 The state-owned Agriculture Development Ba nk (ADB), established by the Agricultural 
Development Bank Act of 1968, is responsible  for providing financial services to the 
agricultural sector, including a fund of TT$150 million for inputs and investment in existing and start-up farms
6, with the interest rate reduced fro m 8% to between 3 and 5%.  Annual 
lending has increased steadily, from TT$64 millio n in the 1990s to over TT$90 million in 
2010; 
                                                      
4 Congressional Resear ch Service (2006), Ethanol Imports and the Caribbean Basin Initiative , Order 
Code RS21930, 10 March, Washington.   
5 The National Agricultural Marketing and Development Corporation online information.  Viewed at:  
http://www.namdevco.com/ [September 2011]. 
6 Agricultural Development Bank online information.  Viewed at:  http://www.adbtt.com/ 
[September 2011].  WT/TPR/S/260 Trade Policy Review 
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 The Cocoa and Coffee Industry Board (CCIB) , which was established by the Cocoa and 
Coffee Industry Act of 1962, is responsible fo r arranging for the purchase, sale, handling, 
grading, export and marketing of cocoa and coffee; 
 The Estate Management and Business Deve lopment Company Ltd (EMBD), which was 
established in 2002 with the responsibility of  managing and developing agricultural lands 
owned by the State, came under the MFPLM A in 2011 with the added responsibility of 
developing land for allocation to former workers of Caroni (1975) Ltd; 
 The Trinidad and Tobago Agri-business Associ ation (TTABA), which was established in 
May 2006 by private sector agri-business stake holders with the support of the Government, 
"to accelerate national economic and social devel opment through the sustainable expansion of 
the Agri-business sector"7 and to manage the National Agri-business Development 
Programme (NADP).  TTABA members include representatives from various stakeholders 
including producers, processors, retailers, exporte rs and consumers, as well as the Ministry of 
Agriculture, the Agricultural Development Ba nk and the Tobago House of Assembly; and 
 The Livestock and Livestock Products Boar d (LLPB), which was established under the 
Livestock and Livestock Products Board Act of  1997 with the aim of maximizing returns for 
producers and processors by encouraging bette r production methods, providing information 
on disease control, and providing marketing information. 
(a) Border measures 
8. Trinidad and Tobago applies the CARICOM comm on external tariff to all tariff lines except 
for 93 lines on its List A.  Most of these 93 tariff lin es are related to agricultural products.  Tariffs on 
agricultural products vary widely from one produc t group to another and within different product 
groups.  The average tariff on agricultural products (WTO definition) is 20% compared with 6% for 
non-agricultural products.  Furthermore, some agriculture products are also subject to import 
surcharges, particularly sugar imports (the import surcharge on poultry imports was removed in 
December 2006).  Trinidad and Tobago does not have any tariff quotas nor does it apply quantitative 
restrictions to imports of agricultural pro ducts (see Chapter III(1)(iii) for more details). 
(b) Domestic support 
9. Despite efforts of successive governments to  increase agriculture production, the amount 
produced has not increased since 2002.  Between  2005 and May 2010, the Transformation Plan for 
the Agriculture Sector focused on agri-business development by encouraging farmers and agri-
businesses to form business organizations and comm odity associations.  In June 2011, a new 
Agricultural Incentive Programme was announced by  the Ministry of Food Production, Land and 
Marine Affairs.  The objective of the programme is to improve food security by increasing domestic 
production through higher productivity a nd greater efficiency.  In order to achieve these goals the 
programme continues many of the subsidies previous ly available for inputs as well as for a wide range 
of investments in machinery, irrigation, and land impr ovement (Table AIV.2).  It also continued, with 
some increases, the guaranteed minimum prices fo r cocoa, coffee, rice and milk (Table IV.3).8  The 
guaranteed price for Grade I rice increased from TT$2,200 per tonne (equivalent to US$352) to TT$3,960 (equivalent to US$634), which was well above international prices.  However, the 
authorities noted that in many cases domestic prices are above the guaranteed prices. 
                                                      
7 TTABA online information.  Viewed at:  http://www.ttaba.com/index.htm [November 2011].  
8 Ministry of Food Production, Land and Marine Affairs (2011), Incentive Programme 2011, June.  
Viewed at:  http://agriculture.gov.tt/fplma/ [October 2011]. Trinidad and Tobago WT/TPR/S/260 
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Table IV.3 
Guaranteed prices for agricultural products 2005, 2009 and 2011 
(TT$)  
Product 2005 2009 2011 
Oranges 21.00/crate of 40.9 kg 21.00/crate of 40.9 kg 21.00/crate of 40.9 kg 
Grapefruit 13.00/crate of 36.4 kg 13.00/crate of 36.4 kg 13.00/crate of 36.4 kg 
Copraa 3.10/kg 3.10/kg 5.00/kg 
Cocoa 14.00/kg 18.00/kg 19.00/kg 
Coffee 11.00/kg Min prices eliminated  
Dried shell corn 2.20/kg Discontinued  
Rice:b    
Grade I 2.20/kg 2.99/kg 3.96/kg 
Grade II 1.82/kg 2.86/kg 3.85/kg 
Grade III 1.37/kg 2.09/kg 3.08/kg 
 Grade IV 0.66/kg Grade IV eliminated  
Milkb 2.55/litre 3.15/ kg 3.15/kg 
a Up to 2009 the Coconut Growers Association (CGA) paid $2.00/kg and the Government $1.10/kg, in 2011 the CGA paid 
 $3.90/kg and the Government $1.10/kg. b The National Flour Mills purchases all pa ddy and Nestle purchases milk from pr oducers at the guaranteed prices and are 
 reimbursed by the Government. 
Source:  Ministry of Food Production, Land and Marine Affairs. 
10. The Agriculture Incentive Programme also provides for product-specific subsidies for 
establishment or rehabilitation of citrus fruit, co ffee, cocoa, coconut, cattle, goat and sheep, pig, 
poultry and rabbit establishments with the subsidy rates varying from 30 to 100% and the maximum 
grants of up to TT$50,000.  
11. According to some sources, one of the main  factors accounting for the failure of earlier 
programmes to improve agriculture was the problem of establishing land tenure rights with estimates 
suggesting that only 35% of land holdings held state-recognised titles.9  To address this problem, 
farmers without leases or land titles have been made eligible provided:  they  occupy State land and 
have requested renewal of expired leases; they ha ve Cabinet approval and are awaiting leases; they 
occupy State lands and the lease is being processed ; they occupy land of lease-holding parents who 
are deceased; or they have occupied State lands fo r the previous five years and the land is well 
cultivated.10  New laws (the Registration of Titles to Land Act, the Land Adjudication Act, and the 
Land Tribunal Act) were passed by Parliament in 201 0 although they have not yet been implemented.   
The state has also redistributed State-owned land to former workers in the state sugar company 
(Caroni (1975) Ltd) that was closed in 2003. 
12. As an ACP sugar producing country that had be nefited from preferential access to the EU 
market, Trinidad and Tobago qualified for assistance towards restructuring the industry for which the 
European Commission reported that it allocated €41.642 million.11  Trinidad and Tobago is using the 
                                                      
9 Lalloo S (2011), Titling Family Lands:  The easy way vs. the right way,  presented at Land Conference 
2011, Land Ownership in Trinidad and Tobago:  Issues and Challenges, The University of the West Indies, 
Trinidad and Tobago, 28-29 April. 
10 Minister for Food Production, Land and Marine Affairs (2011), Speech on the occasion of the 2nd 
Luncheon of the Consular Corps, 23 August.  Viewed at:  
http://agriculture.gov.tt/fplma/index.php?q=cont ent/2nd-luncheon-consular-corps-8911314097964  
[September 2011]. 
11 European Commission delegation to Trinidad and Tobago, EU Co-operation with Trinidad and 
Tobago.  Viewed at:  http://eeas.europa.eu /delegations/trinidad/eu_trinidad /tech_financial_cooperation/index 
_en.htm [October 2011]. WT/TPR/S/260 Trade Policy Review 
Page 60 
  
funds to implement the National Adaptation Strategy through a multi-annual programme which 
includes training programmes, compensation to former employees of Caroni and farmers who used to supply sugar, infrastructure development, and environmental programmes.  
13. For citrus growers the authorities noted that th e presence of several debilitating diseases was a 
major factor in the decline in production quantiti es leading, in May 2010, to the Government 
approving the Citrus Certification Programme which includes a project for replanting citrus orchards.  
The replanting of these orchards requires: investment  in the St Augustine Nurseries so that they can 
deliver the plants; investment in infrastructure, training, and staffing; and the enactment of the 
necessary legislation.  The Programme follows a project started in 2004 by the Ministry of 
Agriculture, Land and Marine Resour ces to establish a mandatory qualit y citrus tree programme.  It is 
expected the project will be completed in 2015 at  an estimated cost of about TT$25 million.   
14. Until 2008, rice production in Trinidad and Tobago had been in long-term decline.  In 1992, 
about 6,000 farmers cultivated about 5,000 ha of rice.  By 2008, this had declined to 80 farmers 
cultivating 1,500 ha. The increase in internationa l prices for rice in 2007 and 2008 along with export 
restrictions in some exporting countries, increased offi cial concern with the steady decline in domestic 
production and, in 2008, the Ministry developed a rice production policy with an increase in the 
minimum prices paid to farmers by the National Flour Mills (Table IV.3) and leasing of land to 
producers. 
15. Although the focus of government policy has been on small farmers, the Commercial Large 
Farms Programme (CLFP) is intended to provide for th e state to enter partnerships with the private 
sector to set up commercial farms of 100 acres (40.5 ha) or more on state-owned land.  In 2008, two 
farms had been established.  The CLFP is expected to be fully implemented by the end of 2013 when 
it is expected that 14 privately funded, manage d and operated commercial farms and one privately 
funded demonstration/model fa rm with training facilities will have been established. 
(c) Support levels 
16. The most recent notification on agriculture subsid ies from Trinidad and Tobago is for the year 
ending September 2007.  This, along with earlier notif ications, indicated that all support was provided 
through the Green Box with the greatest emphasis on research and extension services.  Since the year 
2000/01, support has increased considerably, nearly tripling to TT$283 million in 2006/07 (Chart IV.2).  Expenditure on infrastructure servic es has also increased considerably since 2000, with 
most investment going into acce ss roads and irrigation facilities.
12 
 
 
                                                      
12 WTO documents G/AG/N/TTO/6, 8, 10 and 12 of 25 October 2004, 5 July 2007, 21 September 2007 
and 6 October 2009, respectively. Trinidad and Tobago WT/TPR/S/260 
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17. As a percentage of the value of agricultural production, support to agriculture as notified to 
the WTO has been increasing steadily  over the past few years, reaching a high of over half the value 
of agriculture's contribution to GDP in 2007 before falling in 2008 (Table IV.4). Trinidad and Tobago 
has no export subsidies nor does it have any export restrictions or taxes on agricultural products. 
Table IV.4 
Domestic support to agriculture, 2000-08 
(TT$ million, financial year , 1 October-30 September) 
 2000 2001 2002 2003 2004 2005 2006 2007 2008
Total domestic support 88.5 107.2 109.5 108.2 118.4 160.7 201.0 282.7 263.7
Agricultural GDP 697.2 707.5 713.7 768.2 637.0 487.3 657.3 490.5 576.9
Domestic support as % of agricultural GDP 12.6 15.2 15.3 14.1 18.5 32.9 31.4 57.6 45.7
Source:  Ministry of Agriculture, Land and Marine Resources;  and notifications to the WTO Committee on Agriculture. 
18. Agriculture in Trinidad and Tobago is quite heavily supported 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.  These policies have not 
changed significantly over the past few years but agri culture has continued to decline both in absolute 
terms and in relation to other sectors of the economy.  To some extent the decline, at least since 2003, 
can be attributed to the reduction in the value of preferential access to traditional markets, but the 
small size of farms, uncertain tenure for many farm ers, the small domestic market, and the decline in 
production of higher-value crops like cocoa and coff ee have also contributed.  Whether changes to 
policy, such as higher subsidies and measures to a ddress land tenure problems, succeed remains to be 
seen. WT/TPR/S/260 Trade Policy Review 
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(2) MINING AND ENERGY  
(i) Features 
19. The oil and gas sector is critically important to the economy of Trinidad and Tobago.  In 
2010, it contributed over one-third of GDP, about half of government revenue  and over 80% of total 
exports (Table IV.5).13  The sector employs relatively few people (about 5% of the workforce) 
indicating high levels of productiv ity, which is normal for capita l-intensive extraction industries 
throughout the world. 
Table IV.5 
Contribution of the energy sector to the economy 
(Per cent) 
 2004 2005 2006 2007 2008 2009 2010 
Share of GDP 39.0 42.6 47.1 45.0 49.0 35.9 35.7 
Exploration and production 21.9 23.6 27.8 24.1 27.9 20.3 20.3 
Refining 6.9 7.6 7.0 7.5 7.6 6.5 5.7 
Petrochemicals 6.2 6.8 7.2 7.0 6.8 4.5 5.8 
Other 4.0 4.6 5.1 6.4 6.7 4.6 3.9 
Share of Government Revenue 41.1 52.6 61.8 55.6 57.1 49.5 52.3 
Oil and gas explorati on and production 31.6 42.6 54.9 45.9 49.0 40.3 43.9 
Other taxes 9.5 10.0 6.9 9.7 8.1 9.2 8.4 
Share of Goods Exports 85.8 85.9 91.1 88.6 88.2 85.4 83.4 
Extracted 15.7 10.7 15.5 11.3 14.0 12.9 17.9 
Refined 53.5 53.5 60.7 54.9 56.0 62.9 49.9 
Processed 16.6 21.7 14.9 20.7 18.2 9.6 15.6 
Note: Other taxes include: Withholding tax, royalties, oil impost,  unemployment levy, excise du ties and receipts from signature  
 bonuses for the award of product-sharing contracts. 
Source:  Central Bank of Trinidad and Tobago, Annual Economic Surveys. 
20. Commercial production of oil in Trinidad a nd Tobago started in 1908 and peaked at 
230,000 bbl/day in 1978 before declining to about 123,000 bbl/day in 2003.  Production increased again to 148,000 bbl/day in 2005 but has since decl ined by 28% as reserves are being exhausted.  
Production of natural gas, on the other hand, continued to increase and reached 43 billion m
3 in 2010 
(Table IV.6).  Trinidad and Tobago's current prove n reserves of both crude oil and natural gas are 
enough for about 9 years' production at current leve ls.  Although further e xploration and improved 
extraction methods are likely to add to reserves, pa rticularly for natural gas, the low reserves to 
production ratio underlines the need to di versify the economy away from hydrocarbons. 
21. In 2009, as in the previous Review, the main market for oil exports was the United States, 
particularly for crude oil, while exports to other CARICOM countries (p articularly Jamaica, 
Barbados, and Suriname) were impor tant, particularly for refined products.  The United States was 
also the most important destination for gas expor ts, with Spain, the United Kingdom and Korea as 
other important destinations.  All gas exports ar e in the form of liquefied natural gas (LNG). 
                                                      
13 Central Bank of Trinidad and Tobago (2011), 2010 Annual Eco nomic Survey, Port of Spain, p. 9. Trinidad and Tobago WT/TPR/S/260 
 Page 63 
 
 
Table IV.6 
Petroleum and natural gas production and reserves, 2002-10 
  2002 2003 2004 2005 2006 2007 2008 2009 2010 
Exploration  Km 21 29 29 20 39 44 35 5 11 
Crude oila           
Production 000 bbl/day 131 134 123 137 148 123 115 108 106 
Imports 000 bbl/day 88  91  62  92  80  91  89  95  68  
Exports 000 bbl/day 68  71  56  73  72  60  54  54  45  
Proved reserves million bbl 990 756 620 612 605 464 460 418 397 
N a t u r a l  g a s             
Production million m3/day 52 73 83 89 107 113 115 116 123 
Utilizationb million m 3/day 44 66 74 80 98 102 101 103 108 
o f  w h i c h :             
 Petrochemicals million m3/day 20 21 24 23 31 31 30 31 34 
 Electricity generation million m3/day 6 7 7 7 7 8 8 8 8 
 LNG million m3/day 18 38 40 44 59 63 64 64 66 
Proved reserves billion m3 588 533 532 530 483 482 436 408 381 
a Also includes condensates. 
b Utilization refers to gas sales, and does not include natural gas used in own consumption. 
Source:  Ministry of Energy and Energy Industries (except pr oved reserves from the BP St atistical Review of World 
 Energy, June 2011.  
(ii) Policy 
22. The Ministry of Energy and Energy Affairs (MEEA) is responsible for policy for the 
exploration and extraction of hydrocarbons and minera ls as well as for alternative energy.  In addition 
to policy development, the MEEA also has a broa d range of operational responsibilities, including: 
 issuing licences for exploration and producti on and for production sharing contracts between 
state-owned and private-sector oil companies; 
 regulating and monitoring oil and mining comp anies' work programmes and equipment; 
 regulating and monitoring, including licensing, of storage facilities, pipelines, and marketing 
of petroleum products and operations; 
 regulating and monitoring leases and licences for mining; and 
 assisting with the National Oil Spill Contingency Plan. 
23. Current policy for oil and gas is focused on encouraging exploration and developing down-
stream processing of oil and gas, and petrochemicals.  Although the ge neral direction of energy policy 
is unlikely to change, there h as been an increased emphasis on environmental concerns and local 
content.  In early 2011 the MEEA conducted a series of consultations for input towards developing an 
energy policy under the theme Re-fuelling T&T's Ec onomic Engine:  A New Policy for Energy 2011-
15.  The consultations focused on four issues:  r esource extraction; gas utilization and pricing; local 
content; and alternative energy sources.14 
                                                      
14 Ministry of Energy and Energy Affairs online information.  Viewed at:  
http://www.energy.gov.tt/national_energy_policy_consultations.php?mid=77 [October 2011]. WT/TPR/S/260 Trade Policy Review 
Page 64 
  
24. 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.
15  The issue was also one of the main th emes for the public consultations on energy 
policy held in early 2011.   
25. The legal framework for the petroleum sector in  Trinidad and Tobago is covered by several 
different sets of legislation including:  The Petr oleum Act of 1969; the Petroleum Regulations of 
1970, and the Petroleum Taxes Act of 1974.  Under the Petroleum Regulations, any exploration or 
production of petroleum requires a licence from the MEEA.  There are four different types of licence or permit that can be granted after a request for bids has been issued by the Ministry: 
 Exploration (Public Petroleum Rights) Licence which grants the licensee the non-exclusive 
right to carry out the petroleum operations provided by the licence; 
 Exploration and Production (Public Petroleum Ri ghts) Licence which grants the licensee the 
exclusive right to explore for, produce and dis pose of petroleum in accordance with the terms 
of the licence in strata existing on State lands and submarine areas;  
 Exploration and Production (Private Petroleum Ri ghts) Licence which grants the licensee the 
exclusive right to explore for, produce and dis pose of petroleum in accordance with the terms 
of the licence on land other than State land; or  
 Production Sharing Contract operations relating to the exploration, production and disposition 
of petroleum within a prescribed area.
16 
26. According to the authorities, since 1995 the preferred contractual arrangement has been 
Production Sharing Contracts, under which State reta ins title to the petroleum while the contractor 
carries all risks and costs in return for a share of  production.  Five PSCs were agreed in 2009 and a 
further four in 2011.  From 2005-11, 15 explora tion and production licences have been signed.   
27. The proportion of production due to the St ate under a Production Sharing Contract is 
specified in the contract and can vary from year to year depending on the cost of production, output 
prices and other factors.  The State's share of pr oduction also covers the company's liabilities for some 
taxes and levies, such as the Petroleum Profits Tax, Unemployment Levy, Supplemental Petroleum Tax, Oil Impost, royalties and overriding roya lty payments, Petroleum Production Levy, and 
Withholding Tax.  The different taxes and levies de pend on the type of licence or production sharing 
contract awarded and the specific terms of the licence or contract.   
28. For tax purposes, the Finance Act of 2010 redefi ned deep water acreage to include acreage at 
a depth of more than 400 metres.  For these areas, the Petroleum Profits Tax was reduced from 50% to 
35% while the proportion of exploration spending that  could be treated as a capital allowance was 
increased to 40%. 
29. The rate for royalties on crude is normally 12.5%  of the value of production.  Royalties on gas 
vary according to the contract as follows: 
 TT$0.015/ft
3 sold; 
                                                      
15 Ministry of Energy and Energy Industries (2004), Local Content & Local Participation Policy & 
Framework for the Republic of Trinidad and Tobago Energy Sector, Port of Spain, 7 October. 
16 Ministry of Energy and Energy Affairs (2011), online information.  Viewed at:  
http://www.energy.gov.tt/business_and_inv esting.php?mid=54 [October 2011]. Trinidad and Tobago WT/TPR/S/260 
 Page 65 
 
 
 5% on the first 100 billion ft3 sold, 10% on the next 100 billion ft3 and 15% on the rest; 
 12.5% of natural gas production; or 
 15% of natural gas won and saved. 
30. The Supplemental Petroleum Tax (SPT) is ch arged on gross income from crude oil less 
royalties and overriding royalty payments.  Under the Petroleum Taxes Act, as amended by the 
Finance Act of 2010, SPT rates vary for marine a nd land/deepwater operations and depend, for marine 
operations, on whether the contract or licence was agreed before or since 1 January 1988: 
 For crude oil prices at US$50/bbl and below the SPT rate is zero;   
 For prices above US$50/bbl, up to US$90/bbl the SPT is charged at a base rate of: 18% for 
land and deep-water production; 42% for pre-1 January 1988 marine licences; and 33% for 
post-1 January 1988 marine licenses;   
 For prices above US$90/bbl, up to US$200/bbl th e SPT rates are increased by 0.2% for each 
dollar that the price is over US$90/bbl; and  
 For prices above US$200/bbl the SPT rates ar e capped at: 40% for land and deep-water 
operations; 64% for pre-1 January 1988 marine  licences; and 55% for post-1 January 1988 
marine licences.  
31. The Supplemental Petroleum Tax may be discounted  by 20% for mature marine oil fields and 
small marine oil fields, where a small marine oil field is defined as a marine oil field that produces 1,500 bbl/day or less and a mature marine oil fiel d is defined as a marine oil field where commercial 
production started at least 25 years ago. 
32. Tax credits are also available for crude oil production of 20% of some types of capital 
expenditure on mature oil fields or for enhanced oil recovery projects using enhanced oil recovery 
projects (e.g. using steam, carbon dioxide or water injection). 
33. The scope of Production Sharing Contracts has b een extended since they were first introduced 
in 1995 and they now include provisions for cost recovery, relinquishment, abandonment, minimum 
work programmes (including exploration), procedur es to encourage the development of natural gas 
markets as well as financial obligations such as a si gnature bonus, research and development, training 
of nationals, technical equipment bonuses, and scholar ships. Similar provisions are also included in 
Exploration and Production Licences.  Under the Fina nce Act of 2010 the number of biddable items in 
the Profit Sharing Contracts was reduced to two main areas:  the minimum work programme; and the share of profit petroleum.  The Act also set cost recovery limits at 50% for shallow-water (less than 
400m) acreages and 55% for average water (between 400m and 1,000m).
 
34. The Petroleum Production Levy goes towards s ubsidising petroleum products on the domestic 
market.  The levy is paid by companies producing more than 3,500 bbl/day, up to a maximum of 4% 
of the gross revenue crude oil.17  The proceeds from the Levy do not cover the full cost of the subsidy.  
The balance is borne by the G overnment.  In 2010, the total subsidy was TT$2,919 million and the 
Levy provided TT$564 million. 
                                                      
17 Ministry of Energy and Energy Affairs (2011), online information.  Viewed at:  
http://www.energy.gov.tt/business_and_inv esting.php?mid=159 [October 2011]. WT/TPR/S/260 Trade Policy Review 
Page 66 
  
(iii) Petroleum 
35. The State-owned Petroleum Company of Trinid ad and Tobago (Petrotrin) is involved in 
exploration, production (bot h on-land and off-shore), refining, marke ting, and storage.  It controls 
about three-quarters of oil reserves as well as havi ng responsibility for the e xploration, development 
and production of hydrocarbons and is the owner and operator of the country's only refinery in 
Pointe-a-Pierre.  Exploration and exploitation of oil is usually undertaken through joint ventures 
between Petrotrin and international oil companies.18  In 2010, it had equity interests in 21 joint 
ventures.  In the year ending 30 September 20 10, Petrotrin made a profit (before tax) of 
TT$775 million on total re venue of TT$25,942 million.19   
36. The Pointe-a-Pierre oil refinery has a capacity  of 168,000 bbl/day and is currently undergoing 
a Gasoline Optimisation Program, which started in November 2005 and was due to be completed in 
October 2011 at a total investment cost of TT$9,398 million.  In order to operate the refinery at 
near-to-full capacity, crude oil is imported (princip ally from West Africa and Colombia) for refining 
and exporting.20   Over the past few years capacity utiliza tion at the refinery has been over 90%, with 
the exception of 2010 when it fell to about 76%21 as a result of some problems.  Current production is 
at over 98% of capacity. 
37. Also involved in extraction, processing and marketing of petroleum products is the State-
owned Lake Asphalt of Trinidad a nd Tobago (1978) Ltd.  This enterprise mines asphalt from Pitch 
Lake (a naturally occurring surface deposit of asp halt located at La Brea) and processes and sells 
Trinidad Lake Asphalt and othe r bitumen products.  In 2007, the company had a net profit of 
TT$17 million on total revenue of TT$151 million.22 
38. The State-owned National Petroleum Marketing Company Ltd (NP) is one of two companies 
licensed for retail marketing of petroleum products in Trinidad and Tobago.  NP markets petroleum 
fuels, liquefied petroleum gas, compressed natural gas and automotiv e speciality products that are 
delivered to it by Petrotrin.  It currently produ ces 12 million litres per year of lubricating oils, greases 
and some other products from its blending plants wh ich have an annual capacity of 16 million litres.  
All products, except fuels, are exported, almost en tirely to other Caribbean countries.  The wholly-
owned subsidiary, NATPET Investments Company Ltd,  operates one of the liquefied petroleum gas 
filling plants for sales to the domestic market.23 
39. Wholesale and retail prices for petrol, kerosene,  auto diesel and LPG, and the margin for the 
wholesalers such as National Petroleum Marketing Co mpany (NPMC) are fixed by the Gross Margin 
Order under the Petroleum Production Levy and Subsidy Act.  The elements of this price structure 
include ex-refinery price, excise duty, wholesale marg in, retail margin, value added tax, and subsidy.  
In 2009, through Legal Notice No. 81/2009, the gross margin for some petroleum products was amended to provide for an increase in gross marg ins for petrol.  Followi ng the fixing of gross 
margins, wholesale and retail prices are then fixed (currently VAT inclusive premium unleaded petrol 
prices are fixed at TT$3.80450  wholesale and TT$4.00 retail). 
                                                      
18 EIU (2010), Industry Report, Energy, Trinidad and Tobago, December, London. 
19 Petrotrin (2010), Consolidated Financial Statements of Petroleum Company of Trinidad and Tobago 
Limited , 30 September. 
20 Ministry of Energy and Energy Affairs (2011), online information.  Viewed at:  
http://www.energy.gov.tt/energy_industry.php?mid=32 [September 2011]. 
21 Central Bank of Trinidad and Tobago (2011), 2010 Annual Economic Survey, Port of Spain, 
Table A.8. 
22 Lake Asphalt of Trinidad and Tobago (1978) Ltd, 2007 Annual Report. 
23 NP online information.  Viewed at:  http://www.np.co.tt/ [October 2011]. Trinidad and Tobago WT/TPR/S/260 
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(iv) Natural gas 
40. The State-owned National Gas Company of Tr inidad and Tobago (NGC) has a monopoly on 
transmission, distribution and sale of natural gas in the country.  In 2008, the company made TT$5.4 billion profit on total sales of TT$15.8 billion.
24 The National Energy Corporation (NEC) is a 
wholly owned subsidiary of NGC with respons ibility for the development and management of 
industrial estates, port and marine facilities and for new business in the gas-based energy sector. 
41. Trinidad and Tobago exports gas in the form of liquefied natural gas (LNG) from Atlantic 
LNG in Point Fortin.  Atlantic LNG operates four liquefaction units (or trains), the latest starting 
production in 2005.  The total capacity of the four trains is about 15 million tonnes per year of LNG 
and 30,000 bbl/day of natural gas liquids.25  Each unit is owned by a consortium of companies that 
also have stakes in the gas fields supplying the differe nt trains, and exports go to subsidiaries of these 
companies.   
Table IV.7 
Liquefied Natural Gas Company of Trinidad and Tobago 
(production units) 
Train Capacity Shareholders 
1 LNG: 3 million tonnes per year 
Natural gas liquids:  6,000 bbl/day  BG Atlantic 1 Holdings Ltd 
BP (Barbados) Holding SRL China Investment Corporation (CIC) 
NBC Trinidad and Tobago LNG Ltd 
Repsol LNG Port Spain B.V. 
2 and 3 LNG:  3.3 million tonnes per year (each train) 
Natural gas liquids:  5,000-6,000 bbl/day (each train) BG 2/3 Investments Ltd 
BP Train 2/3 Holding SRL 
Repsol Overzee Financiën B.V. 
4 LNG:  5.2 million tonnes per year 
Natural gas liquids:  12,000 bbl/day BG Atlantic 4 Holdings Ltd 
BP (Barbados) Holding SRL 
Trinidad and Tobago LNG Ltd Repsol Overzee Financiën B.V. 
Source:  Atlantic LNG online information:  http://www.at lanticlng.com/v2/ [October 2011] and authorities. 
42. World GTL Trinidad Limited (WGTL-TL) is a jo int venture project between Petrotrin (49%) 
and World GTL Inc. (51%) for a gas-to-liquids pl ant at the Pointe-a-Pierre refinery. The gas-to-
liquids plant used natural gas provided by Petrot rin as the feedstock, and Petrotrin was the sole 
purchaser of the diesel produced, as well as having the right to purchase hydrogen produced as a by-product. The WGTL–TL went into receivership in Se ptember 2009.  According to the authorities, a 
strategy for proceeding was developed following mee tings with the receiver and representatives for 
WGTL-TL and Petrotrin.  In August 2011, the advertisement stage for the sale of the plant was 
completed, and the process for the sale of the plant is now under way. 
43. Within Trinidad and Tobago, the downstream petr ochemicals and electric ity generation is the 
main end user for natural gas in Trinidad and T obago.  There are 11 ammonia plants and 7 methanol 
plants, and facilities for urea, and iron and steel, in addition to the production of natural gas liquids.  
The first ammonia complex built in Trinidad and T obago, which has two producing plants, is a joint 
venture between the Government and Yara Internat ional (formerly Norsk/Hydro Agri).  All other 
ammonia plants are privately owned.  Most petrochemical companies are located in the Point Lisas 
                                                      
24 NGC (2009), 2008 Annual Report. 
25 Atlantic LNG (2011), Atlantic, What you should know.  WT/TPR/S/260 Trade Policy Review 
Page 68 
  
Industrial Estate, which is owne d and managed by the Point Lisas Industrial Port Development 
Corporation (PLIPDECO) which is  51% owned by the Government.26   
44. A variety of models are used to set natural gas prices in Trinidad and Tobago.  For liquefied 
natural gas, prices are linked to those in major consuming markets.  For sales by NGC to 
petrochemicals and power companies, and to in dustry, producer prices are determined through 
negotiations with the producers with differential pr icing depending on the end-use of the gas and the 
product being produced.  For petrochemicals, NGC shar es the market price risk by allowing the gas 
feedstock price to fluctuate with the price of th e commodity produced (ammonia and methanol).   
(v) Electricity 
45. The State-owned Trinidad and Tobago Electricity Commission (T&TEC) has a monopoly on 
the transmission and distribution of electricity.  Al most all electricity is generated from gas-fired 
power stations.  Electricity on the island of Trin idad is produced by three independent power 
producers:  the Power Generation Company (PowerGen)  (with a total capacity of 1,344 MW);  Trinity 
Power (225 MW); and Trinidad Generation Unlimite d (TGU) (720 MW).  PowerGen is majority 
owned by T&TEC (the other shareholders are Maru Energy Trinidad LLC (39%) and Amoco Trinidad 
Power Resources Corporation (10%)).  On the is land of Tobago, a 64 MW power plant owned by 
T&TEC was put into operation in October 2009 to replace the exis ting 21 MW T&TEC diesel power 
plant. 
46. The power producers sell electricity to T&TEC  under long-term power sales agreements 
negotiated with the supplier, T&TEC a nd the National Energy Commission.   
47. Electricity prices are determined by the Regulated Industries Commission, a statutory body 
established under the Regulated Industries Commissi on Act of 1998, which is also responsible for 
making recommendations for electricity production licences, regulating compliance with licences, and 
other functions relating to regulation of utilities.27  Electricity prices vary depending on whether the 
consumer is a residential, commercial or industria l user:  residential users pay between TT$0.26 and 
0.37 per kWh; commercial users pay between TT$0. 415 and 0.61 per kWh;  and industrial users pay 
between TT$0.145 and 0.218 per kWh plus a m onthly demand charge ranging from TT$37 to TT$50 
per kVA. 
(3) SERVICES  
48. The services sector accounted for over 46% of GDP in 2010, a significant increase from about 
40% of GDP in 2005.  However, the sector was al so responsible for employing nearly 70% of the 
total workforce in the economy, depicting low labour productivity. During the period under review 
services exports declined from US$ 644 million in 2005 to US$ 436 million in 2010.   
49. In the Uruguay Round, Trinid ad and Tobago made sector-specific commitments with respect 
to 8 of the 12 sectors as per the WTO classification.  Most commitments are specific to certain subsectors.  Trinidad and Tobago listed exemptions  to MFN treatment under maritime transport for 
                                                      
26 PLIPDECO online information.  Viewed at:  http://www.plipdeco.com/main/index.php?page= 
corporate-overview [October 2011]. 
27 Regulated Industries Commission online informati on. Viewed at:  http://www.ric.org.tt/cms/mos/ 
Frontpage/ [October 2011]. Trinidad and Tobago WT/TPR/S/260 
 Page 69 
 
 
cargo reservations under the UN Code of Conduct on Liner Conferences, and for all sectors for 
bilateral investment promotion and protection treaties, both for an unlimited period of time.28 
50. Trinidad and Tobago participated and unde rtook commitments in the WTO extended 
negotiations on telecommunications, but did not make commitments in the WTO negotiations on 
financial services and, as a result, the only financial services area in which it has made GATS 
commitments is reinsurance.  In June 2005, Trinid ad and Tobago submitted an initial services offer in 
the negotiations on services under th e Doha Development Agenda.29  
(i) Financial services 
51. The financial sector in Trinidad and Toba go comprises commercial banks, non-bank financial 
institutions, insurance compani es, the Trinidad and Tobago Stock Exchange, the Unit Trust 
Corporation, home mortgage banks and the Deposit Insurance Corporation.  In 2010 the total assets of 
the financial sector were approximately TT$ 162. 5 billion, of which commercial banks accounted for 
over 45% (Table IV.8).  The financial sector combined  with the real estate sector was responsible for 
11.5% of GDP and 8.3% of total employment in th e economy.  The sector also has the second highest 
level of labour productivity (after the petrol eum and gas sector) in Trinidad and Tobago.30    
Table IV.8 
The Financial System in Trinidad and Tobago, 2010 
  Number of Institutions (Branches) Total Assets (TT$Mn) 
Number   
Central Bank 1 66,086 
Commercial Banks 8 (133) 103,694 
Finance Companies and Merchant Banks 11 (26) 5,262 
Trust and Mortgage Finance Companies 7 (7) 5,933 
Thrift Institutions (Building Societies) 3 87 
Development Banks 2 3,735 
Unit Trust Corporation 1 20,998 
Credit Unions 129 9,158 
National Insurance Board 1 19,262 
Insurance Companiesa 38 30,239 
Deposit Insurance Corporation 1 1,641 
Home Mortgage Bank 1 1,819 
Venture Capital Companies 2  
Trinidad and Tobago Stock Exchange 1 62 
Eximbank 1 341 
a Refers to all insurance companies (activ e & inactive) - life, non-life and composite. 
Source:  Central Bank of Trinidad and Tobago. 
 
                                                      
28 WTO document GATS/SC/86, 15 April 1994. 
29 WTO document TN/S/O/TTO, 21 June 2005. 
30 Central Bank of Trinidad and Tobago Annual Report 2010. Viewed a t: http://www.central-
bank.org.tt/sites/default/files/Central% 20Bank%20Annual%20Report%202010.pdf. WT/TPR/S/260 Trade Policy Review 
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(a) Banking 
Structure and performance 
52. As of March 2011, there were eight commercia l banks operating in Tr inidad and Tobago up 
from six at the time of the last Review. The two ne w entrants to the market were the First Caribbean 
International Bank (Trinidad and Tobago) Limite d, which was converted from a non-bank financial 
institution, and the Bank of Baroda (Trinidad and To bago) Limited, which started operations in 2007.  
As of March 2011, the two local banks had a market  share in excess of 53%.  Commercial banks have 
approximately TT$103.7 billion in assets, which is nearly 80% of GDP.  
53. During the period under review, commercial banks  have remained profitable, albeit at a 
declining rate.  Despite the interest rate spre ad largely remaining unchanged, bank profits, as 
measured by return on assets, fell fro m 3.4% in 2006 to 2. 6% in March 2011.31  The decline in 
profitability can mainly be attributed to the economic slowdown in Trinidad and Tobago, which 
resulted in weak credit demand with private sector credit contracting for most of 2010.32  T h e  
economic slowdown also resulted in a stark rise  in non-performing loans (NPLs) as businesses and 
individuals were unable to service their debts due to  reduced cash flows.  As a consequence, NPLs 
rose from 0.7% of gross loans to 5.5% of gross lo ans in March 2011, the highest level in a decade. 
Additionally, banks have become more conserva tive and risk averse.  Commercial banks' foreign 
currency risk exposure as a proportion of gross a ssets declined from over 8% in 2007 to 5.2% in 
March 2011.  
54. Commercial banks are well capitalised, with a regulatory capital-to-risk weighted-assets ratio 
of over 24% against a prudential requirement of 8% , and a Tier 1 capital-to-risk weighted-assets ratio 
of over 21% compared to a prudential requirement of just 4%.  Furthermore, commercial banks had 
conservative lending practices with little or no exposure  to sub-prime debt and had the cushion of a 
high interest rate spread. The above factors resulted in commercial banks emerging relatively 
unscathed and stable in the post- 2008 financial crisis environm ent and the subsequent economic 
downturn.   
Regulation 
55. Commercial banks and non-bank financial institutions are regulated by the Central Bank, 
which administers the Financial Institutions Act of 2008.33  The new Act, which was enacted in 
December 2008, replaced the Financial Institutions Ac t of 1993.  The new Act seeks to strengthen the 
regulation and supervision of ins titutions under its domain.  In this  regard, it provides the Central 
Bank with power to conduct consolidated supervis ion of all domestic banking groups as well as those 
with cross-border operations, and also requires the restructuring of "mixed groups" (i.e. a banking 
group that offers commercial banking and other financ ial services) through the creation of a financial 
holding company (FHC), which would ring-fence each  type of financial service in the group and 
would also be regulated by the Central Bank.  The Act also allows for information sharing between 
the Central Bank and other domestic a nd international regulatory bodies. 
                                                      
31 Central Bank of Trinidad and Tobago Financia l Stability Report Mid-Year Review June 2011.  
Viewed at: http://www.central- ba nk.org.tt/sites/default/files/ Fina ncial%20Stability%20Report%20Mid% 
20Yr% 20Review%20June%202011.pdf. 
32 Central Bank of Trinidad and Tobago Financia l Stability Report Mid-Year Review June 2011.  
Viewed at: http://www.central- bank.org.tt/sites/defa ult/files/ Financial%20Stability%20Report%20Mid%20 
Yr% 20Review%20June%202011.pdf. 
33 The Financial Institutions Act of 2008 is available online from the Ministry of Finance.  Viewed at:  
http://www.finance.gov.tt/conten t/164.pdf [October 2011]. Trinidad and Tobago WT/TPR/S/260 
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56. Under the Act, licensees are required to submit information on both an individual and 
consolidated basis, and it also places increased respons ibility on the Boards of Directors of licensees, 
who are required to make an annual attestation that they are satisfied by the risk management systems 
and internal controls of the institutions for which they are responsible.  Licensees are also required to 
measure and apply a capital charge for all components of market risk.  The enforcement powers of the 
Central Bank have also been enhanced.  It can now, inter alia:   
 issue compliance directions to a licensee or FHC, controlling or significant shareholder of a 
licensee, director or any other employee for breaches of the Act or for conducting unsafe and 
unsound banking practices.  Consequently, the Central Bank can instruct licensees to change 
procedures and policies which it deems inadequate;   
 ask licensees to reduce ex posure that it sees as having excessive risk;  and 
 instruct licensees to increase paid-up capital.   
57. Administrative fines have been introduced for sp ecific breaches of the Act.  The fines vary 
from TT$75,000 to TT$125,000 for each breach of the Act depending on the offence.  These are in 
addition to criminal penalties, which were provided fo r in the 1993 Act.  The criminal penalties are in 
the form of fines that vary from TT$300,000 to TT$500,000 depending on the offence, often with 
additional penalties for each day that the offence continues. 
58. The Act addresses prudential requirements as well.  These pertain to investment limitations, 
large exposure limits and connected party exposure limits.  Other prudential requirements such as 
paid-up capital are unchanged.   
59. Another significant change that has taken pl ace concerns the market entry conditions for 
foreign banks.  Foreign financial institutions ar e now allowed to conduct business in Trinidad and 
Tobago through licensed branches.  Previously, banks had to be incorporated in Trinidad and Tobago.  
Foreign bank branches are subject to the same pr udential regulations as local banks.  To obtain a 
license, the foreign financial institution must be "s ubject to regulation and supervision in its home 
jurisdiction that is satisfactory to the Central Bank"  of Trinidad and Tobago and the foreign financial 
institution needs to appoint a resident of Trinidad  and Tobago as its principal representative (Article 
18).  Additionally, the foreign fina ncial institution must maintain assigned capital with the Central 
Bank in the form of cash or securities, an amount eq uivalent to the minimum share capital that would 
be required of a licensed domestic financial institutio n, or a larger amount that the Central Bank may 
specify.   
(b) Insurance 
Structure and performance 
60. The insurance sector in Trinidad and Tobago is  made up of 38 companies of which 31 are 
active.  These comprise nine companies involved exclusively in the life in surance business, 17 of 
which deal exclusively in general insurance, while  the remaining 5 are composite (life and general 
insurance).  The period under review saw the co llapse of the CL financial group (CLF) and its 
subsidiaries, the Colonial Life Insurance Comp any (CLICO) and the British American Insurance 
Company (Trinidad) Limited (BAT) (Box IV.1).   These insurance companies accounted for 
approximately 40% of the total assets of the insura nce sector in Trinidad and Tobago, while CLF's WT/TPR/S/260 Trade Policy Review 
Page 72 
  
assets were equivalent to 30% of the Caribbean re gion's GDP, and thus their collapse had a contagion 
effect in the region.34 
Box IV.1:  The collapse of CL Financial Group, CLICO and BAT 
 In addition to traditional insurance and pension products, CLICO and BAT35  both took in funds 
through a product called the "Executive Flexible Premiu m Annuity", which was a deferred annuity permitted 
to be sold by life insurance companies so long as it contained a mortality clause, implying a guaranteed rate of 
return at the forecast retir ement age of the contract holder.  Howe ver, the products functioned as term 
deposits. These products were sold for a fixed term of 3-5 years with guaranteed returns in excess of 8% per 
annum, well above the ordinary savings deposit rate in Tr inidad and Tobago of approx imately 2% at the time.  
However, despite functioning as deposits, the funds solicited from this product were not subject to the stricter 
banking regulation and supervision applied to ordinary de posits.  As a result, the CL Financial Group was able 
to channel these deposits to fund illiquid assets such as real estate in Florida and plant and equipment for petrochemical production.  Consequently, between 2005-07 CL Financial's assets grew by 32%.  The global 
economic crisis of 2008 triggered the collapse as many of CL Financial's subsidiaries faced liquidity and 
solvency pressures. 
 According to the authorities, the key factors in the collapse were: 
 Excessive related party transactions which carried high contagion risks; 
 An aggressive high interest rate  resource mobilization strategy to finance high risk and illiquid 
investments; and  
 Very high leveraging of CL Financial's assets. 
 Despite being aware of the above issues the re gulator (Central Bank) was unable to implement 
corrective measures due to the inadequacies of the th en legislative framework. 
 At the time of the collapse, CL Financial's total assets were equivalent to 30% of the Caribbean 
region's GDP, while CLICO's assets were equivalent to over 10% of Trinidad and Tobago's GDP.  To avoid 
the systemic failure of the financial sector, the authorities intervened. CL Financial agreed to sell assets to 
meet the statutory requirements of CLICO and BAT, while the Government injected TT$5 billion.  In return the Government received preferential sh ares and 49% equity in CLICO and al so gained control of the firm by 
appointing four of the seven board members, including the chairman. 
 In the 2010/11 budget, the Government announced a restructuring plan that would pay all investors 
in full up to a maximum of TT$75,000 and restructure the remaining outstanding amount over a 20-year 
period with no interest.  Furthermore, the Government is also seeking a new agreement with CL Financial, 
which would provide more scope to the Government to sell the group's assets, thus enabling the authorities to cover some of the costs they have incurred due to the bailout of CLICO and BAT, estimated to be as high as 
10% of GDP.  
Source : IMF Trinidad and Tobago Selected Issues Janu ary 2011, and IMF Staff Report for Article IV 
 consultation December 2010 and information provided by the authorities. 
61. If CLICO and BAT are excluded, the insurance sector grew and remained profitable during 
the period under review albeit at a declining rate  of growth since 2008.  Life insurance, which 
accounts for approximately 80% of the industry's asset s, saw growth in gross premium income decline 
to about 7% annually in 2010 from a high of over 16% in 2008, while the assets of life insurance 
firms rose to over TT$15 billion in 2010, reflecting an annual growth rate of 8%, which was lower 
than the 10% registered in the previous year. 
                                                      
34 IMF Staff Report for Article  IV consultation December 2010. 
35 Both companies were part of a larger conglomerate CL Financial Group, which had interests in 
banking, insurance, real estate, beverages, and energy and petrochemical sectors. Trinidad and Tobago WT/TPR/S/260 
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62. However, with operating expenses remaining static over the past few years and premium 
income increasing during the same period, life insuran ce company profits have been rising.  Return on 
equity rose to nearly 15% in 2010, compared to 9%  in 2006.  Life insurance companies in Trinidad 
and Tobago are well capitalised.  At present ther e are no capital adequacy rules for insurance 
companies in Trinidad and Tobago, thus the ratio of  free capital and surplus to policy holder liabilities 
is used as a proxy.  This ratio has been about 36% during the review period compared to a global 
industry standard of 5%. 
63. The non-life insurance sector has not performed as well as the life insurance sector.  Total 
assets of non-life insurance firms have remained al most constant at about TT$4 billion since 2006, 
while growth in gross premium income has declin ed from 23% in 2006 to slightly over 4% in 2009. 
64. The larger non-life insurance companies are be tter capitalised and profitable.  However, 
certain smaller companies, especially those providi ng third-party motor insurance, have tended to 
under-price risk and underestimate cl aims reserves.  As a conseque nce, the Central Bank liquidated 
two such companies and has petitioned the courts to wind-up another. 
Regulation 
65. Since 2004, the insurance sector has been regulat ed by the Central Bank, which administers 
the Insurance Act of 1980 (as amended in 2009).  To be registered under the Act, life insurance 
companies must have a minimum capital require ment of TT$3 million, while non-life insurance 
companies must meet the minimum solvency marg in requirements.  Additionally, the insurance 
products of all firms need to be approved by th e regulator.  Furthermore, all insurance companies 
need to maintain a statutory fund with assets that  are equivalent to their Trinidad and Tobago 
policyholders' liabilities.  Investments in Trinidad and Tobago assets must be at least 80% of their 
Trinidad and Tobago dollar liabilities.36  Life and automobile insurers  are required to have statutory 
funds to support policyholders' liability.  All fo reign firms providing life insurance and all non-life 
insurers  must maintain statutory deposits.  All in surers are required to have adequate reinsurance.  
66. Cross-ownership of financial institutions is permitted, subject to Ce ntral Bank approval.  
However, a bank cannot acquire any part or share of  an insurance company if it is greater than 100% 
of the bank's capital base or the shareholding is gr eater than 25% of the bank's paid up share capital 
and statutory reserve. 
67. Foreign firms are permitted to conduct insuran ce business in Trinidad and Tobago if they are 
locally incorporated or appoint a local resident as their principal representative.37  There is no 
minimum paid-up capital requirement for foreign fi rms but they are required to deposit TT$250,000 
with the Central Bank in order to be able to ca rry out long-term insurance business in Trinidad and 
Tobago.  Furthermore, there are no restrictions  on local residents purchasing insurance products 
abroad or any restriction on foreign firms advertis ing and selling insurance products in Trinidad and 
Tobago. 
68. The 2009 amendment to the Insurance Act follo wed the collapse of CLICO and BAT, which 
was widely blamed on inadequate regulation and weak supervision.38  The amendment addressed 
                                                      
36 For investment purposes CARICOM countries are given national treatment. Thus investments in 
CARICOM assets must be at least 80% of their Trinidad and Tobago dollar liabilities. 
37 This requirement does not apply to companies from other CARICOM countries. 
38 IMF Trinidad and Tobago Selected Issues Januar y 2011.  Viewed at:  http://www.imf.org/external/ 
pubs/ft/scr/2011/cr1174.pdf. 
 WT/TPR/S/260 Trade Policy Review 
Page 74 
  
shortcomings in the legal framework by requiri ng quarterly reporting and that statutory fund 
requirements be met on an on-going basis, not only at the end of the year.  Previously, the requirement 
that the statutory fund cover an insurance company's liability only needed to be met at the end of the 
year and the annual statement only needed to be file d within six months of the company's fiscal year-
end.  The amendment also gave the Central Bank authority to implement timely corrective action as 
well as authorizing information sharing among regulators. 
69. The authorities have drafted a new Insurance Bill,  which is expected to  be enacted in 2011 . 
According to the authorities, the Bill is based on international best prac tice regarding insurance 
regulation and supervision.  The Bill provides for inter alia :  the imposition of risk-based capital 
adequacy requirements and limits on credit expos ures and connected party exposures;  stronger 
corporate governance by requiring audit committees, annual reporting by directors and senior management, as well as prescribing additional responsib ilities for directors, auditors and actuaries;  
and consolidated supervision by broadening the Central Bank's powers to inspect subsidiaries and 
offshore operations of insurers.  The Bill also pr ovides for more effective protection of policyholders  
with respect to funds handled by  insurance intermediaries.  On the other hand, the authorities 
recognise deficiencies in the Bill such as the c ontinued requirement that insurance companies 
maintain a statutory fund, that life insurance comp anies keep sufficient assets in Trinidad and Tobago 
to cover all liabilities regardless of their orig in and prior approval of insurance products.
39  I n  
addition, the draft Bill would need accompanying guidelines.40   
(c) Securities 
70. The equity market in Trinidad and Tobago is  small with only 32 listed companies in 2010, 
with eight being delisted since the last Review.  During the period under review, market capitalization 
declined from TT$96.8 billion in 20 06 to TT$77.8 billion in 2010.41  Furthermore, market value of 
traded shares declined from approximately TT $2.5 billion to TT$865 million over the same period. 
The decline was due to the global financial crisis in 2008.42 
71. There has been no change to the legislation.  The Securities Industry Act, 1995 continues to 
govern securities trading in Trinidad and Tobago.  The Act details the conditions for the issue and 
listing of securities on the stock exchange.  The Act is administered by the Securities and Exchange Commission (SEC), which is an independent regula tory body.  Issuers, underwriters, investment 
advisers, stockbrokers, and dealers, must register with the SEC.  The SEC also has quasi-judicial authority:  it has been granted investigative and dispute settlement powers to enforce rules and 
regulations and to monitor the solvency of market players.  It can recommend by-laws to the Minister 
and has the authority to formulate principles for th e guidance of the securities industry, and to review, 
approve, and regulate take-overs, amalgamations, an d all forms of business combinations.  However, 
the authorities stated that the Draft Securities Bill 201 0 is being revised according to international best 
practices and the SEC is in the process of hiri ng a consultant to undertake the revision process.   
                                                      
39 Central Bank of Trinidad and Tobago Financ ial Stability Report November 2010. Viewed at: 
http://www.central-bank.org.tt/s ites/default/files/Financial%20Stability%20Report%202010.pdf. 
40 IMF Trinidad and Tobago Financial Sy stem Stability Assessment January 2011.  
41 Central Bank of Trinidad and Tobago Financia l Stability Report Mid-Year Review June 2011. 
Viewed at: http://www.central- bank.org.tt/sites/de fault/files/Financial%20Stability%20Report%20Mid%20Yr 
% 20Review%20June%202011.pdf. 
42 Central Bank of Trinidad and Tobago Financia l Stability Report Mid-Year Review June 2011. 
Viewed at: http://www.central- ba nk.org.tt/sites/default/files/Financ ial%20Stability%20Report%20Mid%20Yr 
% 20Review%20June%202011.pdf. Trinidad and Tobago WT/TPR/S/260 
 Page 75 
 
 
(ii) Telecommunications 
(a) Structure 
72. The revenues collected from the telecommunicati ons and broadcasting sectors in Trinidad and 
Tobago contributed over 3% of GDP in 2010.  Th e sector comprises mobile telephony, fixed-line 
telephony, internet and broadcasting.  During the period under review the sector has been growing, 
with total penetration of telecom services increasi ng approximately 167% in 2010 compared with 
73% in 2005.43 
Mobile telephony 
73. Mobile telephony is by far the largest segment of the telecommunications sector accounting 
for nearly 44% of the sectors revenue in 2010.  Furt hermore, mobile telephony is also the driver of 
growth in the industry, with m obile telephone subscriptions increas ing from 630,000 at the time of the 
last review to nearly 2 million in 2010 which is eq ual to a penetration rate of over 143%.  The sector 
comprises two operators:  Telecommunications Serv ices of Trinidad and Tobago (TSTT) and Digicel 
Trinidad Limited, which have an equal market sh are. According to the authorities a new license for 
mobile operators would be auctioned in 2012.  Th e price of a three-minute cellular call in Trinidad 
and Tobago is comparable with other Ca ribbean countries at approximately US$1.44 
Fixed line telephony 
74. The fixed-voice market accounts for 17% of the sect or's total revenue.  However, in contrast 
to the mobile telephony market, fixed-line telephony has been losing ground, with the total number of 
subscribers declining from 330,000 at the time of the last Review to approximately 293,000 in 2010, 
which is equal to a penetration rate of approximately 22%.  
75. Currently there are two service providers in  the domestic fixed-line market, TSTT (the 
incumbent) and Columbus Communications Trinid ad Limited.  TSTT has a near monopoly on the 
market and has been declared by Telecommunications  Authority of Trinidad and Tobago (TATT) as a 
dominant player in this market segment.45  Furthermore, three other entities also have concessions to 
provide domestic fixed-line telecommunications se rvice, two of these have initiated services and 
mainly serve corporate clients, while the third is expected to start operations  in the near future.  
Fixed-line telephone charges are approximately US$0.03 per minute.46  Additionally, there are eight 
active operators in the international switched teleco mmunications market.  The authorities stated that 
the competitive nature of the international market  had driven prices down to  unsuitably low levels, 
resulting in TATT intervening at the request of  the industry and implementing price floors for 
incoming international termina tion rates in February 2010.  
Internet 
76. Internet services account for approximately 12% of the total sector's revenues.  Currently 
there are over 171,000 fixed internet subscribers a nd 452,000 mobile internet subscribers, resulting in 
overall internet penetration of approximately 47% .  At present there are seven active fixed-line 
                                                      
43 Telecommunications Authority of Trinidad and Tobago online information.  Viewed at:  
http://tatt.org.tt/ and information provided by the authorities. 
44 Information provided by the authorities based on the ITU database. 
45 The authorities stated that TSTT controls 90% of the fixed line market. 
46 Information provided by the authorities based on the ITU database. WT/TPR/S/260 Trade Policy Review 
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internet service providers, with both mobile operators providing mobile internet access.47  T h e  
authorities stated that Trinidad and Tobago has the lowest fixed broadband internet monthly 
subscription in the Caribbean, at approximately US$12 per month.48   
Broadcasting 
77. The Broadcasting sector, which is made up of Subscription Television and Free to Air radio 
and television was responsible for approximately 18% of the telecommunications sector revenues in 
2010.  With over 178,000 subscriptions spread over ni ne operators, the subscrip tion TV market is the 
main driver in the broadcasting market segment. Th is translates into a household penetration rate of 
52%. The Free-to-Air markets are competitive with 37 radio stations and 8 television stations.  
(b) Regulation 
78. The main legislation governing the telecommuni cations sector in Trinidad and Tobago is the 
Telecommunications Act of 2001 and the subseque nt Telecommunications (Amendment) Act of 
2004. The Telecommunications Authority of Trinidad and Tobago (TATT) administers the Act and is 
the regulatory authority for the sector. 
79. TATT is responsible for, inte r alia:  facilitating the envir onment for open and competitive 
telecommunications services;  ensuring the devel opment of the telecommunications and broadcasting 
sector;  granting licences and making recommendations to the Minister on the granting of concessions;  classification of telecommunications netw orks and services;  determination of universal 
service obligations so that all residents of Trinidad and Tobago have access to telecommunications services;  establishing industry standards;  implementing and enforcing the Telecommunications Act 
and associated regulations; collection of all fees re lated to the Act;  and resolving disputes between 
different parties that use telecommunications services. 
80. There have been no changes to the Telecommunications (Amendment) Act 2004 during the 
period under review.  Operation of a public teleco mmunications network, or provision of a public 
telecommunications or broadcasting service, requi res a concession from the TATT, while use of the 
spectrum requires a licence.  No distinction is ma de between foreign and domestically owned service 
providers when granting concessions and licences.  The authorities stated that a new amendment to 
the Act was expected to be promulgated in 2012.  The new amendment would give greater regulatory 
power to TATT and also address competition issues. 
81. Frequency bands may be licensed by auction, tender , at a fixed price, or on stated criteria.  
Applications for concessions or licences are publishe d in the Gazette and open to public comments or 
objections.  Concessions and licences contain expiry da tes and are subject to annual fees.  The transfer 
of control of the concession requires prior written approval from the TATT.  The TATT may 
determine that an operator or provider is dominant wher e, individually or jointly with others, it is in  a 
position of economic strength affording it the pow er to behave independently of competitors.
49 
82. Concessionaires must permit the resale of their telecommunications services and must provide 
and contribute to universal service.  The pub lic telecommunications services for which the 
requirement of universal service will apply are high lighted in the Universality Framework, which has 
                                                      
47 Telecommunications Authority of Trinidad and Tobago online information.  Viewed at:  
http://tatt.org.tt/. 
48 Information provided by the authorities based on the ITU database. 
49 TATT is authorized to regulate competition and pr ices if a provider has a 70% or greater market 
share. Trinidad and Tobago WT/TPR/S/260 
 Page 77 
 
 
been published by TATT. The authorities stated that corresponding regulations have also been 
developed but are awaiting cabinet approval.  The draft regulations propose that domestic 
concessionaires, international concessionaires and a ll providers of closed-user group and private 
telecommunications services in the market contri bute 0.5%, 1% and 2% respectively of gross 
revenues arising from relevant telecommunications  services and/or network facilities towards the 
universal service fund. However, three regulations ha ve been issued pertaining to the implementation 
of the Act. These are the Telecommunications  (Access to Facilities) Regulations 2006, 
Telecommunications (Fees) Regulations 2006 and Te lecommunications (Interconnection) Regulations 
2006. 
83. Under the Telecommunications (Access to Fac ilities) Regulations 2006, the concessionaires 
are required to provide access to each other's ne tworks if so requested in a non-discriminatory 
manner.  Access agreements are required to deta il the price for access to facilities as well as other 
technical, operational, billing and pl anning conditions for access.  The pr ice for access is to be agreed 
through commercial agreements.  In the absence of  mutual agreements between the access seeker and 
the access provider, the cost will be determined  by the TATT, based on its costing methodology, 
which would reflect the cost incurred by the provider.50  If such costing methodologies are not 
available, then internationally accepted costing be nchmarks may be used.  Furthermore, under the 
regulation, a request for access cannot be denied ex cept for reasons of insufficient capacity, safety, 
security, or technical difficulties.  Access-related di sputes are to be referred to TATT, which may put 
in place an interim arrangement.  Any breach of the regulations is liable to a summary conviction and 
a fine of TT$50,000.51 
84. The Telecommunications (Fees) Regulations 2006 stipulate that all concessionaires need to 
submit their monthly revenue accounts to TATT, whic h takes the total annual revenue of the sector 
into account when it recalculates annual concession fees.52  The initial fee is determined based on the 
type of concession and is detailed in the First Schedule to the Regulation.53  The Regulation also 
includes a provision for competitive bidding for licences for frequency and spectrum bands.  
Telecommunications Tenders Rules 2004  detail the bidding procedure. 
85. Concessionaires are required to provide non-discriminatory access to their facilities for 
interconnection purposes, which would include tran smission, switching, routing of voice, data and 
media over their networks, under the Telecommunica tions (Interconnection) Regulations 2006.  The 
Regulation also allows for number portability between concessionaires. 
86. After an interconnection request has been made, the agreement needs to be concluded within 
six weeks where either party has published a refere nce interconnection order or ten weeks in other 
cases.54  All interconnection agreements are required to  state prices for interconnection services and 
resources as well as technical, operational, billing a nd planning conditions for interconnection. If the 
concerned parties cannot agree on interconnection rates among themselves, TATT shall intervene and 
set interconnection rates based on a costing methodo logy provided by TATT.  If such methodologies 
                                                      
50 The authorities stated that through a consulta tive approach with concessionaires, TATT had 
developed a Long Run Average Incremental Cost Model which would be implemented shortly. 
51 Telecommunications (Access to Facilities) Regula tions 2006.  Viewed at:  http://tatt.org.tt/Link 
Click.aspx?fileticket=ggBHIX7iBZo%3d&tabid=125. 
52 Fees for a national territorial concession shall not be less than TT$ 10,000. 
53 Telecommunications (Fees) Regulations 2006.  Viewed at:  http://tatt.org.tt/Link 
Click.aspx?fileticket=eW9rzEGwtrA%3d&tabid=125. 
54 Telecommunications (Interconnection) Regulatio ns 2006.  Viewed at:  http://tatt.org.tt/Link 
Click.aspx? fileticket=UtRgpqGYcCg%3d&tabid=125. WT/TPR/S/260 Trade Policy Review 
Page 78 
  
are not available then internationally established be nchmarks are to be used.  All interconnection 
agreements are to be posted on the TATT website. 
87. Any denial of an interconnection request need s to be notified to TATT with reasons provided 
for the denial.  If TATT deems that the reasons are not justified, it can ask for network changes or 
adjustments so that interconnection is possible.  All interconnection disputes need to be referred to 
TATT, which may ask for an interim agreement to  be put in place during the resolution process.  
Breaches of the Regulation are liable to a su mmary conviction and a fine of TT$50,000. 
88. There have been no changes to the pricing methodology for telecommunications services in 
Trinidad and Tobago during the period under review .  As long as TSTT is the dominant supplier in 
the fixed-voice market, its tariffs are subject to oversight by TATT.  Additionally, TATT is mandated 
to set, review, and approve prices in cases where inter alia  there is only one service provider or if a 
provider has a dominant market position or where th e operator of a public telecommunications service 
cross-subsidizes another telecommunications service , or if TATT detects anti-competitive behaviour.  
In 2009 TATT published a Price Regulation Framewor k, which defines relevant telecommunications 
markets, the methodology for assessing whether there is dominance or exclusivity of supply within 
those markets, and the imposition of price regulation if  so justified.  Furthermore, the Framework also 
details the different forms of price regulation and th e notification of price changes, the prevention of 
unfair cross-subsidies, anti-competitive pricing and the treatment of new service offerings.  
(iii) Tourism 
89. The tourism sector was responsible for 3.6% of GDP directly in 2008, while indirectly it 
contributed 7.4%.  The travel and tourism sector is also responsible for nearly 5.4% of total 
employment in the economy directly, while the sector's  indirect contribution to total employment was 
9.5%.  The period under review has seen a decline in  visitors to Trinidad and Tobago.  International 
air travellers declined from over 460,000 in 2005 to about 419,000 in 2009.  The largest source 
market was the U.S., which accounted for 47% on th e arrivals in 2009 followed by the Caribbean 
(13%), Canada (12%), Central and South America (11%) and the UK (10%).55 
90. During the period under review there has been no change to the legislative framework 
governing the tourism sector or the incentives that  are in place.  Three government entities are 
responsible for the tourism sector:  the Ministry  of Tourism, which is responsible for policy 
formulation;  the Tobago House of Assembly;  and the Tourism Development Company Limited, 
which is responsible for tourism investme nt, marketing and product development. 
91. Incentives for investment in th e tourism sector are covered under the Tourism Development 
Act of 2000 as amended in 2006.56  Under the Act, incentives for approved tourism projects include a 
seven-year tax exemption pertaining to the gains or  profits from an approved tourism project;  tax 
exemption in respect of the gains or profits derived from the initial sale of a villa or condominium or a 
site that is part of an integrated resort deve lopment which is an approved tourism project.  Any 
dividends from an approved tourism project made  to non-residents are exempt from tax.   
Additionally, approved tourism projects may also be granted accelerated depreciation on equipment 
and capital allowance on approved capital expenditure.  An importer of a vehicle to be used in the 
                                                      
55 National Tourism Policy of Trinidad and Tobago 2010.  Viewed at:  http://www.tourism.gov.tt/ 
LinkClick.aspx?fileticket=hepfUm%2b3UUA%3d&tabid=175&mid=416;  and Statistical Overview of Tourism Performance in Trinidad an d Tobago 2009.  Viewed a t:  http://www.tourism.gov.tt/Link 
Click.aspx?fileticket=4jmiXbr7A%2fE%3d&tabid=93. 
56 Tourism Development Act 2006.  Vi ewed at:  http://w ww.tourism.gov.tt/Link 
Click.aspx?fileticket=e6oo6z2%2b32k%3d&tabid=173. Trinidad and Tobago WT/TPR/S/260 
 Page 79 
 
 
tourism transportation industry, may also apply fo r a licence to import a vehicle at a preferential 
customs duty rate of 10% with 0% motor vehicle tax. 
92. Imports of building materials and articles of tour ism  equipment used in a tourism project are 
granted customs and excise duty exemptions;  fo r purchases made locally, companies are permitted 
duty drawbacks for building materials and articles of "tourism equipment" that were not already duty 
free (the VAT is still payable).  To be eligible  for the incentives, any accommodation project must 
have a minimum of ten guestrooms;   approval depends on the amount of  capital invested, the financial 
risk assumed, the contribution made or likely to be made to the sustainable development of the tourism industry, and the achievement of national tourism objectives.  Tourism projects seeking to 
access benefits under the Act must be registered with TDC if the project is in Trinidad, or with the 
Tobago House of Assembly if the project is in Tobago.  Projects are inspected annually. 
93. Tourism incentives are open to Trinidad and T obago and other CARICO M nationals, and to 
foreigners except in the case of accommodation facilities with fewer than 21 rooms, transport 
services, and ground tour operations or destination management companies and dive operations for 
which incentives are reserved solely for Trin idad and Tobago and CARICOM nationals.  
94. The Government has identified travel and touris m as an important ave nue for diversifying the 
economy.  In this regard, it announ ced a National Tourism Policy in 2010.
57  The Policy aims "to use 
sustainable tourism as a tool for the economic, socio-cultural and environmental development of 
Trinidad and Tobago for the benefit of all citizens."  To achieve this goal, the potential of the tourism 
sector would be used to create jobs, alleviate povert y, earn foreign exchange as well as stimulate the 
creation of inter-industry linkages, particularly w ith the agriculture, construction, manufacturing, 
sports and other services industries. 
95. Additionally, the Policy also encourages inter alia investment in the sector through public-
private partnerships;  improving industry standards,  while also encouraging the adoption of national 
and international standards; improving transport in frastructure and links, and marketing Trinidad and 
Tobago as an all-encompassing tourist destination.    
(iv) Transport 
Shipping 
96. The registration and licensing of ships is cove red under the Shipping Act, 1987, which is 
administered by the Maritime Services Division in the Ministry of Works and Infrastructure (MOWI).  
Under the Shipping Act, to be registered, ships need  to be owned by nationals  of Trinidad and Tobago 
or other CARICOM member states, or by foreigners engaged in bareboat charte rs or in joint venture 
shipping arrangements with Trinidad  and Tobago nationals.  Domestic ship owners are not required to 
fly the national flag.  As at 31 December 2004, th ere were 145 ships on the Trinidad and Tobago 
register with a gross tonnage of 60,767 gt.58  
97. Inter-island routes between Trinidad and Toba go are operated by the Port Authority of 
Trinidad and Tobago (PATT) on behalf of the Govern ment.  All other operators are required to obtain 
an operating permit in accordance with the Sh ipping (Passenger Ferry) Regulations 1994.  
Furthermore, vessels engaging in coastal trade be tween the islands of Trinidad and Tobago are 
                                                      
57 National Tourism Policy of Trinidad and Tobago  2010.  Viewed at:  http://www.tourism.gov.tt/Link 
Click.aspx?fileticket=hepfUm%2b3UUA%3d&tabid=175&mid=416. 
58 WTO document WT/TPR/S/151/Rev.1 12, October 2005. WT/TPR/S/260 Trade Policy Review 
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required to have a Certificate of Droghers59 on fulfilment of safety, environmental, and financial 
responsibility guidelines. 
98. Trinidad and Tobago is a member of the Inte rnational Maritime Organization (IMO) and has 
ratified a number of its conventions, dealing main ly with safety, security, and pollution issues.  
Trinidad and Tobago is also a signatory to the United Nations Code of C onduct on Liner Conferences 
Convention.  Trinidad and Tobago does not have a national shipping line. 
Ports 
99. There are three major sea ports in Trinidad a nd Tobago:  Port of Spain and Point Lisas in 
Trinidad, and Scarborough in Tobago.  Port of Spai n, the country's largest port, handles all major dry 
cargoes, containers and general cargo, break bulk cargo, liquid bulk cargo and passenger traffic, and 
in recent years has increasingly b ecome a major regional hub for trans-shipment.  Point Lisas is a 
multi-purpose port.  It has specialized installations  for loading industrial cargo and infrastructure for 
the handling of containers and ge neral cargo.  Scarborough is used mainly for inter-island passenger 
and cargo transport, and international cruise ships. 
100. During the period under review cargo handled at  the ports increased from 467,000 TEU in 
2005 to above 577,000 TEU in 2010, of which over 42% was transhipment cargo.60  Vessel 
turnaround times have increased from 21 hours in 2006 to nearly 26 hours in 2010.61  The authorities 
stated that this increase was due to a reduction in port container handling productivity due to 
increased cargo volumes, inadequa te storage space, inadequate equipment and counter-productive 
industrial contracts.  The review period also saw an increase in port tariffs , which encompass towage 
charges and container and cargo handling charges. 
101. There have been no changes to the legislation a nd regulations governing ports in Trinidad and 
Tobago since the last Review.  Transportation policy formulation and implementation is the 
responsibility of the Ministry of Works and Infrastruct ure.  Port administration is the responsibility of 
the Port Authority of Trinidad and Tobago (PATT), which administers the Port Authority Act of 1961.  Under the provisions of the Act, authorizati on from the PATT is needed to discharge and load 
general cargo and to supply other port services at a ny port in Trinidad and Tobago except Point Lisas, 
where authorization from Point Lisas Port Developmen t Company (PLIPDECO) is required.  Trinidad 
and Tobago has no restrictions on foreig n suppliers of auxiliary port services. 
102. At the time of the last Review, the Government intended to restructure the PATT and to 
commercialize operations so as to improve efficiency  and accountability in the provision of services.  
This has been done by setting up Port of Port of Spain (cargo handling), Port of Spain Infrastructure 
Company (property management and cruise shi pping) and Trinidad and Tobago Inter Island 
Transportation Company (ferry services). 
103. As an island nation, maritime transport and services are very important for Trinidad and 
Tobago.  In this regard, the authorities have identif ied the merchant marine industry as a high growth 
sector.  Thus, with a view to developing "a world class maritime cluster leveraging on local 
advantages and favourable geographic location, while  at the same time bu ilding core maritime 
                                                      
59 A drogher is a freight barge of the West Indies, rigged as a cutter or schooner. 
60 Trinidad and Tobago Export Directory.  Vi ewed at:  http://www.bdc.co.tt/exportdirectory/ 
profiles.php?cid=3&docID=20 and info rmation provided by the authorities. 
61 Information provided by the authorities. Trinidad and Tobago WT/TPR/S/260 
 Page 81 
 
 
competencies for the future"62, in 2004 the Government created a st rategic plan to guide the long-term 
development of the sector.  In 2006, a Maritime In dustry Development Committee was created.  The 
strategic plan addresses legislative reforms, ins titutional reforms, cluster development and human 
resource development. 
104. The authorities stated that the MOWI is curren tly working on amendments to the Shipping 
Bill, Harbours Bill and Marine Pollution Bill which, according to the authorities, are at the draft policy stage and require legal direction.  Furthermore, a draft Business and Implementation Plan for the establishment of a Maritime Services Authority  has been completed and is currently being 
reviewed by MOWI.  
Civil aviation 
105. At the time of the last review there were tw o domestic airlines operating in Trinidad and 
Tobago, BWIA International Airways and Tobago E xpress.  However, due to financial difficulties, 
both airlines were merged into the newly formed Ca ribbean Airlines in 2006.  The latter is the only 
airline registered in Trinidad and Tobago  and is also the national carrier.     
106. Policy formulation and implementation for the ai rline sector is the responsibility of MOWI.  
The Trinidad and Tobago Civil Aviation Authority (TTCAA) is the regulator  for the industry and 
administers the Civil Aviation Act of 2001, which is  the main legislation governing the sector.  Under 
the provisions of the Act, TTCAA is responsible for inter alia :  regulating civil aviation operations in 
the Trinidad and Tobago territory, as well as the opera tion of maintenance organizations in respect of 
aircraft on the Trinidad and Tobago register;  issu ing, renewing, and amending civil aviation licences 
and collecting the respective fees;  and providing a system of air traffic services.  The Authority is 
also responsible for aviation safety and security, a nd for maintaining a national aircraft register.  
107. There have been no changes to the conditions  under which foreign carriers operate in 
Trinidad and Tobago since 2005, and these are detailed  in the Foreign Operators Regulations of 2004.  
Air operators who do not hold an Air Operator Cert ificate issued by TTCAA need to have a Foreign 
Air Operator Operations Specification for which th e operator must provide a copy of a valid air 
operator certificate issued by a foreign authority, and must have presented an Air Operator Security 
Programme for approval.  Aircraft registered abro ad and holding operating certificates need clearance 
from TTCAA. 
108. Under the Civil Aviation (Tenders Committee)  Rules of 2004, TTCAA contracts cannot be 
awarded to non-residents, foreign companies or pa rtnerships without prio r written approval from the 
Minister.  The authorities indicate that this is for monitoring purposes. 
109. Non-CARICOM airlines are subject to cabotag e restrictions for both cargo and passenger 
transportation. 
110. As per the provisions of the CARICOM Mu ltilateral Air Services Agreement, CARICOM-
designated air carriers are allowed to offer all typ es of air services within CARICOM.  The agreement 
also establishes guidelines on competition, fares, and security.  Trinidad and Tobago has bilateral air 
services agreements with 18 countries.
63  Of these agreements, those with Canada and the US are 
                                                      
62 Trinidad and Tobago's Merchant Marine Industry.   Viewed at:  http://www.investtnt.com/1content/ 
articlefiles/9-Merchant%20Marine%20Indus-%20TIC2008.pdf. 
63 Trinidad and Tobago has bilateral aviation ag reements with:  Aruba, Antigua and Barbuda, 
Barbados, Belgium, Canada, Cuba, Denmark, France, Jama ica, the Netherlands, Nigeri a, Poland, St. Lucia, St. 
Kitts and Nevis, Sweden, Switzerland, th e United Kingdom, and the United States. WT/TPR/S/260 Trade Policy Review 
Page 82 
  
open-skies agreement, both of which were conclude d as such in 2010.  Additionally, Trinidad and 
Tobago has memoranda of understanding with a number of countries.   
Airports 
111. There are two international airports in Trinidad  and Tobago, the Piarco International Airport 
in Trinidad and the ANR Robinson International Ai rport in Tobago.  During the period under review 
total passenger traffic at both airports decreased.  At  Piarco, the number of passengers declined from 
2.4 million in 2005 to 2.3 million in 2008, while at ANR Robinson passenger traffic fell from 
approximately 878,000 to 814,000 over the same peri od.  In contrast, cargo volumes at both airports 
increased over the same period.64   
112. Both airports are owned and managed by the Government-controlled Airports Authority of 
Trinidad and Tobago, which administers the Airports Authority Act of 1979, the main legislation governing the sector.  Airports may only be built an d owned by the Government and operated by the 
Airports Authority.  
113. Under the Civil Aviation Aerodrome Licens ing Regulations of 2004, all aerodromes, 
including airports, must obtain a licence to operate, and must be registered in the Aerodrome Register.  
Licences are granted for one year.  To obtain a licence, applicants must meet the safety and financial 
conditions spelled out in the Regulations.  
 
                                                      
64 Airports Authority of Trinidad and Tobago online information.  Viewed at:  http://tntairports.com/ 
newdesign.html. Trinidad and Tobago WT/TPR/S/260 
 Page 83 
 
 
REFERENCES 
 
Central Bank of Trinidad and Tobago (2010a), Annual Report 2010 . Viewed at: http://www.central-
bank.org.tt/sites/default/files/Centra l%20Bank%20Annua l%20Report%202010_0.pdf. 
 
Central Bank of Trinidad and Tobago (2010b), Financial Stability Report,  November. Viewed at: 
http://www.central-bank.org.tt/sites/default/fil es/Financial%20Stability%20Report%202010.pdf. 
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