Note: Advance written questions by WTO Member s and the replies provided by Trinidad and 
Tobago are reproduced in documents WT/TPR/M/151/Add.1 and WT/TPR/M/151/Add.2 and 
will be available online at:  http://www.wt o.org/english/tratop_e/tpr_e/tp_rep_e.htm.  WORLD TRADE  
ORGANIZATION  WT/TPR/M/151 
2 November 2005 
 (05-5144) 
Trade Policy Review Body 
14 and 16 September 2005  
 
 
 
 
TRADE POLICY REVIEW 
 
TRINIDAD AND TOBAGO 
 
Minutes of Meeting  
 
Chairperson:  H.E. Mr. Don Stephenson (Canada) 
 
 
    Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
 
II. OPENING STATEMENT BY THE REPRESEN TATIVE OF TRINIDAD AND TOBAGO 4 
 III. STATEMENT BY THE DISCUSSANT 8 
 
IV. STATEMENTS BY MEMBERS 11  
V. REPLIES BY THE REPRESENTATIVE OF TRINIDAD AND TOBAGO AND 
 ADDITIONAL COMMENTS 19 
 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 23  
 WT/TPR/M/151 
Page 3 
 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The second Trade Policy Review of Trinidad and Tobago was held on 14 and 
16 September 2005.  The Chairp erson H.E. Mr. Don Stephenson  welcomed the Honourable Kenneth 
Valley, Minister of Trade and Industry, Ms. Edwina  Leacock, Permanent Secretary in the Ministry of 
Trade and Industry and the rest of the Trinidad and Tobago delegation.  The Chairperson also 
welcomed H.E. Mr. Eirik Glenne (Norway) who ha d kindly agreed to act as the discussant for this 
Review.  As usual, the discussant would speak in his personal capacity and not as a representative of 
his Government;  in accordance with the established pr ocedures, he had made available, in advance, 
outlines of the main issues he intended to raise (WT/TPR/D/127). 
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures of the meeting.  The Report by Trinidad and Tobago was contained in document WT/TPR/G/151 and that of the WTO Secretariat in document WT/TPR/S/151. 
3. Copies of advance written questions submitted by  Japan;  Argentina;  Canada;  the United 
States;  the European Communities;  Brazil;  and Mexico had been transmitted to the delegation of 
Trinidad and Tobago.  These questions and the repl ies provided by the delegation of Trinidad and 
Tobago are reproduced in documents WT/TPR/M/151/Add.1 and WT/TPR/M/151/Add.2. 
4. The Chairperson noted that Trinidad and Toba go was an active participant in the WTO.  
Since its last Review, in 1998, the Trinidad a nd Tobago economy had expande d rapidly, underpinned 
by developments in the hydrocarbons sector, which remained the backbone of the economy.  Foreign 
trade and investment had played a crucial role in  supporting this rapid economic growth.  Trinidad 
and Tobago had also continued to make efforts to  facilitate and liberalize its trade, although the 
Secretariat Report described the changes in trad e policy since 1998 as moderate.  The report noted 
that, although the scope and level of import surcha rges had been reduced, and Trinidad and Tobago's 
use of non-tariff trade barriers appeared low, the use of anti-dumping measures had increased, the 
simple average MFN tariff remained at 9.1%, and n on-automatic licensing was still applied.  In this 
respect, it would be interesting to know whether Trinidad and Tobago was considering reducing its 
applied tariff levels and modifying its  non-automatic import licensing regime. 
5. The Chairperson stated that Trinidad and T obago was a world-class supplier of energy and 
petrochemical products, and had taken steps to refo rm some services activities.  However, as the 
Secretariat Report noted, further reforms seemed to be needed for Trinidad and Tobago to achieve its 
ambitious objectives of becoming a knowledge-based ec onomy.  He believed that Members would be 
interested in knowing whether Trinidad and Tobago  agreed with this view and in which areas it 
envisaged introducing further economic reform, particularly in the light of its objective of attaining 
developed country status by 2020. 
6. The Chairperson noted that at the end of the meeting he planned to discuss the second point in 
the agenda, related to the adoption of the TPRB's second appraisal of the operation of the Trade 
Policy Review Mechanism.  The documentation for the second appraisal of the operation of the Trade 
Policy Review Mechanism had already been ci rculated, and was contained in document 
WT/TPR/W/33. WT/TPR/M/151 
Page 4 
 
 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF TRINIDAD AND 
TOBAGO 
7. The representative of Trinidad and Tobago  noted the importance of the meeting for his 
country as it allowed it the opportunity to assess the e ffectiveness of the policies implemented, and to 
explain to the WTO membership the views and future trade policy direction of the Government of 
Trinidad and Tobago. 
8. The focus of Trinidad and Tobago over the l ast seven years had been to consolidate the 
reform, liberalization, and integration processes star ted in the 1990s.  The country’s principal trade 
policy objective was the sustainable growth of the economy, through the expansion of the non-energy sector.  This was being achieved through a:  planned approach to the diversification of the economy;  
building competitiveness;  and generating sustainabl e export-led economic growth.  These strategies 
were pivotal for Trinidad and Tobago’s vision to at tain developed country status by the year 2020.  
Trinidad and Tobago’s confidence in charti ng such an ambitious course was based on the 
development of what it considered to be the appropriate mix of macroeconomic fundamentals. 
9. Trinidad and Tobago’s economic growth had co ntinued to be exceptionally strong since the 
last Review.  Over the 1999-04 period, the annual av erage growth rate had be en approximately 7.7%, 
twice the rate (3.8%) of the global economy for th e same period.  In 2005, the economy was expected 
to record is twelfth consecutive year of economic expansion.  A main foundation of the Government’s 
economic strategy was to ensure that the benefits  of economic growth and development were shared 
by all sections of the population.  Trinidad a nd Tobago believed implicitly that growth must be 
accompanied by the creation of sustainable employment involving permanent jobs.  As a result of his 
country's economic growth, the unemplo yment rate had fallen to 8.3% in 2004, the lowest level in the 
past 20 years.  Labour productivity had risen at a rapid pace above real wage growth, while prudent 
monetary policies had been emphasized, focused on exchange-rate stability and moderate inflation. 
10. Trinidad and Tobago's' overall fiscal situati on had also improved with fiscal balance being 
maintained during the review period.  Current expe nditure had been kept unde r control reflecting the 
Government's prudent and astute management of the economy.  The Central Government had been 
posting current account surpluses since FY 1999/2000, and in 2000 an interim Revenue Stabilization 
Fund had been created to cushion the nation agains t any unexpected drop in petroleum prices and at 
the same time strengthen the public sector savings e ffort to allow for inter-g enerational transfers. 
11. During the review period, the balance of paymen ts had also achieved remarkable strength.  
The current account surplus had risen by over 13  percentage points of GDP between 1999 and 2004, 
to 14.2% of GDP, reflecting higher petroleum prices  and increased natural gas exports.  Exports had 
increased by approximately 127% between 1999 and 2004, to a record US$6.4 billion in 2004.  The 
economy had also continued to receive record leve ls of foreign direct investments (approximately 
US$700 million annually and close to US$1 billion in 2004) despite a decline of investment inflows 
in the Americas.  As a consequence of the strong balance of payments position, the external reserves 
position had strengthened considerably, tripling fr om around US$945million in 1999 (3.1 months of 
import cover) to US$2.98 billion in 2004 (6.9 months). 
12. Given the favourable prospects for the energy sector, both in terms of increasing gas 
production and further development of downstream en ergy industries; as well as the prospects for 
increasing crude oil production and higher than normal commodity prices, the outlook for the 
economy in 2005 and beyond was positive.  The positiv e prospects for the economy had recently 
prompted Standard & Poor's Ratings Services to ra ise its long-term foreign currency sovereign credit 
rating on Trinidad and Tobago to A- from BBB+ a nd its long-term local currency sovereign credit WT/TPR/M/151 
Page 5 
 
 
rating to A+ from A.  Moody’s rating service had al so recently upgraded Trinidad and Tobago's key 
foreign currency ratings to Baa2 from Baa3. 
13. These achievements were a result of the pro active approach to pursue outward-oriented 
policies that sought to integrate the Trinidad a nd Tobago economy into the global economy.  This 
stance was irreversible, since Trinidad and Tobago c onsidered free trade as the most viable option to 
pursue social and economic progress. 
14. Trinidad and Tobago had made significant efforts to continue the liberalization of its trade 
and investment regime since its first Review, in 1998.  It had adopted legislative and institutional 
improvements to facilitate trade and had undertak en initiatives to open the market for goods and 
services.  The Government was currently engaged in  financial sector reform with the objective of 
modernizing and upgrading the supervisory and regula tory framework of the financial system.  A key 
goal was to make Trinidad and Tobago the Pan-Cari bbean Financial Centre (PCFC) of the Region.  
The Government was also pursuing polici es to encourage good corporate governance and 
accountability both within the public and private sectors, and had accelerated third-generation 
structural reforms aimed at achieving a sustaine d balance of the country’s external accounts. 
15. The Government of Trinidad and Tobago belie ved that a liberalized telecommunications 
sector was pivotal to enhancing the competitiveness  of the local economy.  It had established an 
independent regulator, the Telecommunications Author ity of Trinidad and Tobago, which had started 
implementing policies to facilitate competition in  a fair, equitable, and transparent manner. 
16. The Government of Trinidad and Tobago r ecognized that viable , competitive economic 
enterprises were the foundation for economic growth.  It had therefore continued the drive to diversify 
the economy using surplus revenues from the energy sect or.  In other words it had gone "micro".  To 
this end, several sectors where Trinidad and Tobago  had a level of competitiv e advantage, and which 
had the potential for sustainable export-led growth, ha d been targeted for further development.  These 
sectors were:  food and beverages;  printing and pa ckaging;  merchant marine;  film, music, and 
entertainment; fish and fish processing;  yach ting service;  and information and communications 
technology (ICT).  
17. Trinidad and Tobago was committed to a rules-based multilateral trading system particularly 
as seen by the implementation of WTO Agreements, in  some cases ahead of schedule.  Trinidad and 
Tobago's legislation provi ded TRIPS-plus protection in certain areas, to guarantee a measure of 
security to potential investors and technology prov iders.  It was also moving to modernize its 
competition policy framework and was reform ing its government procurement process. 
18. Another major plank of Trinidad and Tobago's trade policy was the negotiation of bilateral 
investment treaties (BITs), concluded in an effo rt to promote and protect investment from major 
trading partners.  Accordingly, Trinidad and Tobago  had entered into BITs w ith Canada, China, Cuba, 
France, South Korea, Spain, the United Kingdom, and the United States.  Agreements were also under 
negotiation with Chile, Germany, India, the Neth erlands, Italy, Argentina, and Switzerland. 
19. The Government had accepted the principle of the private sector as the engine of economic 
growth and the State as a fac ilitator to create an environment for private sector innovation and 
entrepreneurship.  In support of this position, the Government had begun a comprehensive programme 
of public sector reform.  Under an IDB Trade Sector Support Programme, Trinidad and Tobago was 
reorganizing the Ministry of Trade and Indus try and other trade-related organizations. 
20. Trinidad and Tobago was an active member of the Caribbean Community (CARICOM) and 
was committed to the operation of a CARICOM Si ngle Market and Economy (CSME).  It believed WT/TPR/M/151 
Page 6 
 
 
that the CSME would be its bridgehead into the Free Trade Area of the Americas (FTAA), the 
European Union, and the entire global economy bei ng shaped at the WTO.  However, as a small 
island nation with an open economy, Trinidad and Tobago continued to hold the view, along with its 
CARICOM partners, that a special regime that t ook into account size and development must form the 
basis for the region’s participati on in international trade negotiations.  It was in this context that 
Trinidad and Tobago underscored its commitment  to the multilateral negotiating process and the 
establishment of a fair and equitable trading syst em.  Trinidad and Tobago recognized that such a 
system was indispensable for the survival of small vulnerable economies.  It believed that the WTO 
should address the particular interests and needs of  developing country members and ensure that 
sustained efforts were made towards balancing the obligations assumed and the benefits derived from 
the system.  New and innovative approaches should be developed to deal with special and differential 
treatment for developing countries in the WTO.  Fo r Trinidad and Tobago, special and differential 
treatment was the fulcrum that sought to create a ba lance between the different interests and concerns 
of developed and de veloping countries. 
21. Trinidad and Tobago continued to participate in  the discussions in agriculture, non-agriculture 
market access (NAMA), trade in se rvices, trade facilitation and implementation issues.  In addition, 
Trinidad and Tobago continued to demonstrate its willingness to contribute to the Doha Development 
Round in a meaningful way, and contended that there must, of necessity, be a balanced approach that 
kept development as the centrepiece of the negotiations. 
22. Given Trinidad and Tobago’s developmental concerns, its principal positions in the WTO 
negotiations were premised on:  (i) securing some  flexibility or policy space to advance its economic 
development and industrialization po licies;  and (ii) acquiring rights and privileges to compensate for 
the small size of the domestic market.  This imp lied applying negotiating principles in a manner that 
took into account the differences in size, vulnerabilit y, and levels of devel opment amongst countries.  
In this regard, a continuum approach was desirable rather than the traditional “one size fits all” 
approach when dealing with the application of the provision of special and differential treatment to 
developing countries. 
23. A most significant meeting of world leaders was taking place at the UN Headquarters to 
review the progress of the Millennium Development Go als, and in particular to develop mechanisms 
to halve the level of global poverty by 2015.  This  ambitious goal would require bold decisiveness and 
diligent action on the part of the international comm unity.  Of equal importance was the promotion of 
sustained and orderly growth in the developing worl d.  While at present, there was a perception that 
the benefits of globalization had not been shared equitably across nations, the trend towards a purely 
market-driven approach to trade policy by develope d countries seemed to continue apace.  However, 
developing countries needed greater assistance for de velopment.  Trade issues  were at the heart of 
domestic politics and foreign policy.  The political and social outcomes of efforts by developing 
countries should be acknowledged. 
24. The erosion of trade preferences and the limited progress on special and differential treatment 
for small vulnerable economies were catalysts for the growing discontent against increased trade 
liberalization.  This sentiment had been expressed in a most organized and disruptive manner during 
past WTO Ministerial meetings.  The appropriate  mechanisms of dialogue should be utilized to 
address anxieties and doubts concer ning the multilateral trading system.  Half-measures and faltering 
steps did not build confidence.  A greater degree of  coordination, coherence, and closer cooperation 
was required between the WTO membership and non- governmental organizations.  This could require 
institutional reform in the WTO, especi ally in its decision-making process. 
25. On the path to Hong Kong, the views of those who argued that development issues were often 
relegated to the periphery in trade negotiations a nd, thus, that these negotiations had not provided WT/TPR/M/151 
Page 7 
 
 
sufficient dividends to assist developing countries to trade their way out of poverty, should be 
considered.  The WTO Ministerial would be judged a success to the extent that developmental issues 
permeated any agreement that was finally achieved.  He hoped that this level of ambition would be 
commonly accepted by the entire WTO membership. 
26. He believed that an emphasis on development w ould contribute to a level playing field that 
allowed countries such as Trinidad and Tobago the opportunity to share in the benefits of trade 
liberalization.  He also believed that the devel opmental goals of the multilateral trading system could 
not be reasonably achieved without targeted, opera tional measures that first sought to redress the 
imbalances that existed, and pr ovided developing countries with th e requisite flexibility and space for 
policy intervention.  In so doing, the convergen ce in income growth and development between 
developed and developing countries,  on which the strongest argument for free trade was based, might 
be finally realized. 
27. His country’s trade policies were geared toward improving the standard of living for Trinidad 
and Tobago's citizens.  The Government of Trinid ad and Tobago was committed to the development 
of a trade regime that was open, sustainable and a ligned to the principles and objectives of the WTO, 
and to the overall benefit of all citizens of the world. WT/TPR/M/151 
Page 8 
 
 
III. STATEMENT BY THE DISCUSSANT 
28. The discussant  (H.E. Ambassador Eirik Glenne) stated that his point of departure for the 
Trade Policy Review was one of lessons learned.  He had thus tried to look for developments that 
might be of interest to Members and at the same ti me indicate points of interest to the delegation of 
Trinidad and Tobago.  He had tried to organize his comments along the three headings outlined in 
WT/TPR/D/127. 
Macroeconomic environment 
29. The data provided in the background papers to this TPR had revealed a very impressive and 
steady growth in the economy of Trinidad and Tobago not only since its TPR of seven years ago, but even further back.  He believed that such a remarkable performan ce ought to be commended.  It was 
not a given success to exploit petroleum;  it was almost the contrary.  History provided abundant 
examples and illustrations of how countries had faile d in their endeavours.  He was, therefore, 
impressed by what Trinidad and Tobago had been able to achieve economically.  However, he was 
convinced that the Government would have pr eferred a somewhat better performance in the 
unemployment rate.  Many countries would be eager to  achieve the rate of 8.3%, reached in 2004.  
However, for Trinidad and Tobago, with a very im pressive performance on growth, the fact that the 
unemployment rate was relatively high, despite the fa vourable development in real wages, indicated a 
potential for improvement in the way the labour mark et policy was functioning.  The most important 
input in all economies was the labour force, no matter  how endowed the country might be with natural 
resources.  Therefore, he wondered whether the Government had put in place mechanisms for re-
educating the unemployed in order to make them bette r fitted to the jobs available.  Investment in 
such policies would prove rewarding for both the individuals and the economy in the long run. 
30. Fiscal policy had also been wise and prudent.  Trinidad and Tobago had introduced a policy 
geared at handling the capital inflow it receive d over the years from petroleum activities.  He 
understood that Trinidad and Tobago's system cons isted in getting revenue through various taxes 
linked to the price of petroleum in such a way that the higher the price, the higher the revenue.  If this 
was the case, Trinidad and Tobago had the challenge of stabilizing the impact of petroleum revenues 
on its economy as the prices of oil varied.  Tr inidad and Tobago had established an Interim 
Stabilization Fund in 2000, in which the Governme nt had to deposit any additional revenue from a 
base price on oil of US$25 a barrel.  At the end of 2004, the accumulated balance of the Fund had 
reached TT$2.8 billion.  This type of policy w as not only recommendable, but necessary.  With a 
relative size of the petroleum sector like that of  Trinidad and Tobago's, considerable demand 
fluctuations would occur if petroleum revenues were to  be used as they accrued.  He was interested in 
hearing Trinidad and Tobago's views on the argumen t that the existence of a stabilizing fund gave 
weight to long-term considerations wh en addressing day-to-day economic policy. 
31. The existence of a stabilization fund raised a nu mber of challenges, including where to invest 
the fund, when to make use of the accumulated wealth , and for what purposes.  This could give rise to 
various political discussions and even result in political challenges.  There were many reasons for that.  
One was the that exploring the petroleum assets of a  country was only a transformation of national wealth, and the common wealth that belonged to th is and coming generations  should be managed in 
the best possible manner.  Fiscal discipline was a way to ensure that wealth was distributed equitably 
across generations.  On the other hand, the benefits of being in a position like that of Trinidad and 
Tobago outweighed by far the drawbacks.  A st abilization fund could act as a buffer and dampen 
fluctuations in the exchange rate that petroleu m revenues might otherwise generate.  Also, capital 
from the fund could help to curb the appreciation of the currency and maintain its stability.  These 
effects would definitely materialize as the size of the fund grew. WT/TPR/M/151 
Page 9 
 
 
32. An exchange rate appreciation c ontributed to the efforts of containing inflation.  On the other 
hand, an appreciation also reduced external competitiveness, thus making the goal of economic 
activity diversification more difficult.  There seeme d to be a choice here between lower inflation and 
higher competitiveness in the medium term.  He belie ved, however, that other policy areas also played 
an important role in the development of a country ’s competitiveness, not least fiscal policy.  Thus a 
responsible fiscal policy combined with a monetary po licy based on inflation targeting ought to work.  
Although the monetary policy had faced some challenges in recent years, it seemed that the responsible operators had been able  to manage these challenges.  Ne vertheless, he was interested to 
know whether Trinidad and Tobago felt that the devel opment in prices, particularly for food, posed a 
problem. 
33. Reverting to fiscal policy, he noted that th e Central Government had been posting current 
account surpluses during the period under review.  No t many governments had registered the same 
situation.  However, the non-hydrocarbon balance of  the total budget was in deficit and probably on 
an increasing trend.  This was likely to be a reflectio n of the need for intensified diversification of the 
economy.  There were no immediate risks involve d since the Government was pursuing a very 
responsible fiscal policy and public savings would be  increased through the Stabilization Fund, but a 
structural deficit needed attention.  The effect of  an unconstrained development in this respect might 
be that pressure on the Fund could be impossible to resist.  On the other hand, running a deficit over 
some time due to real investments in infr astructure could be an optimal policy option. 
Trade policy regime 
34. Trinidad and Tobago's trade policy regime was modern.  It had entered into regional trade 
arrangements with neighbouring countries since 1992, with the aim of creating a single market by the 
end of 2005.  This was one vital ingredient in Trinidad and Tobago's policy of becoming a regional 
hub and achieving full integration into the Latin American economy.  CARICOM seemed to be a 
useful tool in that context.  Furthermore, the stat ed policy was to focus on the further liberalization of 
domestic markets, continuation of the divestment  programme, and the upgrading of all aspects of 
infrastructure.  Trinidad and Tobago had also  recognized the trend towards eliminating trade 
preferences in favour of reciprocal trading agreemen ts.  An important pillar of Trinidad and Tobago's 
modern trade policy was its attitude towards foreign investment.  It was encouraging them as a tool 
for enhancing competitiveness and to  help diversify its economy.  Trinidad and Tobago was also 
playing a positive and active role in the WTO, both in its day-to-day business and in the Doha round 
negotiations. 
35. Trinidad and Tobago's trade policy goals were  impressive.  The tools used were those 
available to everyone, i.e. those permitted under WTO ru les.  It would be interesting to know whether 
the policy had worked.  Foreign direct investment (F DI) had increased quite considerably over the last 
few years, albeit mostly within the hydrocarbon sector.  Although FDI had probably not contributed 
directly to the aim of diversifying the economy, the in direct effects of this inflow of capital could take 
longer to materialize.  FDI policy seemed to be modern, liberal, and given the positive results with 
respect to attracting FDI, probably adequate for its purpose.  Nevertheless, he asked whether any 
assessment had been made of the economic costs and benefits of the various instruments being 
applied to attract this investment.  Most ha d occurred in the hydrocarbon area, in which it was 
probably not difficult currently to attract investment. 
36. With regard to the tariff regime, the Secretar iat Report pointed out that Trinidad and Tobago 
had bound the whole tariff schedule, thus creating st ability and predictability for traders.  Like for 
many other countries there was a difference betw een applied and bound rates for many important 
products, thus reducing somewhat the predictability of  the trade regime.  Since the revenue effect of WT/TPR/M/151 
Page 10 
 
 
tariffs was falling, and keeping in mind Vision 2020, he wondered whether Trinidad and Tobago was 
contemplating an evaluation of costs and benefits of such a policy. 
37. He had also noticed that Trinidad and Toba go had made more active use of anti-dumping 
measures during the period under review.  Contin gency measures had been introduced into the GATT 
and the WTO because not all traders traded fairly.  However, history had shown that such measures 
could be misused for protectionist purposes.  In mo st, if not all cases, both parties became losers.  
Therefore, contingency measures ought to be used with great care if they were to fulfil their purpose.   
38. Trinidad and Tobago did not have a comprehensive competition policy.  Since competition 
policy was usually seen as a vital ingredient in increasing the efficiency of an economy, he was 
interested in learning how Trinidad and Tobago managed the task of securing competition among the 
various market players.  Concerning government procurement, the assessment by the Secretariat had 
been very positive with regard to actual performan ce.  He wondered whether there was a proposal in 
the Green Paper to consider joining the Plurilate ral Agreement on Governme nt Procurement.  He 
commended the Government of Trinidad and Tobago for its positive stand on the issue of intellectual 
property rights. 
Sectoral policies 
39. The Government was placing high importance on the development of the agriculture sector.  
Trinidad and Tobago was contemplating enhancing pr ivate participation in this sector to increase 
productivity, and was implementing the Agriculture S ector Reform Programme to that effect.  He 
enquired about the prospects for that initiative. 
40. Trinidad and Tobago had followed a step-by-step liberalization policy in services.  As a first 
step, during the Uruguay Round, Trinidad and Tobago had made sector-specific commitments with 
respect to 8 of the 12 sectors identified in the classi fication prepared by the WTO.  The discussant saw 
this as the first step in a considered policy on services.  The second important step had come into 
fruition in July 2005 when Trinidad and Tobago had proclaimed a single market for services between 
itself and Barbados and Jamaica.  All members of CARICOM had committed to the same goal by the 
end of 2005.  He was interested to know how Trinidad and Tobago saw progress in this area. 
41. According to the Secretariat Report, libera lization had taken place in the financial and 
telecom sectors.  A White Paper on financial servi ces had been introduced to Parliament in 2004 to 
that effect, and the various proposals in the White Pa per were being implemented.  He was interested 
to know what time perspective the Government had set itself for reaching the stated goal of becoming 
a Pan-Caribbean financial centre. 
42. The liberalization of the telecommunications sector had started somewhat later than for 
financial services.  The National Information and Communication Technology Plan had been 
approved in 2003 and was being implemented.  Te lecommunications was proba bly the most important 
infrastructure sector of any economy, and cutting costs and increasing capacity was therefore vital for the development of the competitiveness of the ec onomy as a whole.  Many countries had found that 
doing away with the old state monopoly had brought about many benefits, including a vibrant 
reformed company in its place.  Such a policy should reduce prices of telecom services.  
Telecommunications prices were currently high by international standards and he asked whether the 
responsible authority has a policy on this.  Fina lly he commended Trinidad and Tobago for its 
submission of the initial offer on services in June 2005. WT/TPR/M/151 
Page 11 
 
 
IV. STATEMENTS BY MEMBERS 
43. Members welcomed the delegation of Trinidad and Tobago, and thanked Minister Valley for 
his introductory remarks and the discussant for his contribution.  A number of Members referred to 
the questions they had submitted to the Trinidad and Tobago delegation in  writing;  they looked 
forward to receiving the replies to these questions. 
44. The representative of Japan  noted that Japan and Trinidad and Tobago had enjoyed an 
amicable relationship for a long time.  Japan had be en the first donor country to Trinidad and Tobago, 
and had provided technical assistance for many years.  East Asia and Latin America, including the 
Caribbean, were the most dynamically developing  regions in the world, and there was a great 
potential for a partnership between the two regions.  In order to realize this latent potential, Japan 
hoped that its economic relationship with  the region would be reactivated. 
45. The Report by Trinidad and Tobago stated that  trade initiatives continued to be pursued in a 
context that recognized both regional and bilateral tr ade agreements as complementary to agreements 
in the multilateral forum.  The Report by the Secretar iat also stated that Trinidad and Tobago’s main 
policy objectives were to position itself as a regional hub and to achieve full integration into the Latin 
American economy while perfecting the CARICOM.  To attain these goals, Trinidad and Tobago was 
seeking, among other things, to lower the cost of doing business in the country, to promote investment 
in human capital, and to improve overall economic efficiency.  Japan welcom ed these policies, which 
had led to the recent continuous increase of trade in  Trinidad and Tobago.  As regards promoting its 
business environment, Japan hoped that transparen cy, such as public consultation was secured when 
new regulations were introduced. 
46. Japan appreciated Trinidad and Tobago's leadi ng role for the establishment of the CARICOM 
Single Market and Economy.  Japan hoped that th e outcome of liberalization achieved both by its own 
policies and through the CARICOM, would be reflected  in commitments at the multilateral level;  this 
would be helpful both for the development of Trinidad and Tobago and its trade partners. 
47. Trinidad and Tobago had achieved a high annual average real GDP growth rate of 7.7% over 
the 1999-04 period;  It had also enhanced labour productivity, decreased the unemployment rate, and 
controlled the inflation rate.  Tr inidad and Tobago had rich natura l resources such as petroleum and 
natural gas.  The current rapid rise of crude oil prices strongly supported its economic growth;  Japan 
hoped that Trinidad and Tobago would take this good opportunity to further strengthen its basic 
economic structure.  Promoting liberalization, par ticularly in the services sector, would contribute 
strongly to enhancing the competitiveness of the whol e of the economy.  From this point of view, 
Japan welcomed the progress of current reforms in the services sector, such as telecommunications 
services, and ratifying the Fourth Protocol to the GATS.  However, there was still room for improvement.  For example, Trinidad and Tobago had not yet ratified the Fifth Protocol.  As the 
Secretariat Report stated, further reform and impl ementation efforts were crucial for Trinidad and 
Tobago. 
48. The representative of Argentina
 noted the exceptional performance of the economy of 
Trinidad and Tobago in the last few years, and the period of strong growth since its last TPR, in 1998.  Within the English-speaking Caribbean, Trinidad an d Tobago was one of the nations with strongest 
growth prospects in the short and medium run;  it also had a good credit rating.  The evolution of the 
manufacturing sector had been supported, directly or indirectly, by hydrocarbon-related activities, 
such as the production of petrochemicals, and of ir on and steel.  However, although the energy sector 
would continue to be the main e ngine of economic growth in the i mmediate future, the dual character 
of Trinidad and Tobago's economic structure – w ith a wealth generating energy sector, based on the 
petroleum and gas industries, and the rest of the economy – presented some challenges.  Argentina WT/TPR/M/151 
Page 12 
 
 
hoped that Trinidad and Tobago would be able to ta ke advantage of the current positive situation to 
diversify its economy and create new jobs.  The Gove rnment's efforts to implement its Vision 2020 
initiative were remarkable;  the long-term goa l was to reach developed-country status by 
implementing structural reform progr ammes.  To achieve this goal, in ternational trade would need to 
play a more relevant role, particularly through the strengthening of the CARICOM Single Market and 
Economy. 
49. There was potential to further develop trade be tween Argentina and Trinidad and Tobago;  
Trinidad and Tobago accounted for around 40% of Arge ntinian total exports to the CARICOM.  The 
export market for foods, fruits, garlic and onion, beef  and poultry appeared promising;  in this respect, 
the exchange of sanitary service information betw een Argentina and Trinidad and Tobago could be 
improved. 
50. The first MERCOSUR-CARICOM technical meeting had taken place in Trinidad and Tobago 
in February 2005 to begin assessing the possibility of a bi-regional free trade agreement. 
51. The representative of Canada  noted that Canada-Trinidad and Tobago trade and investment 
relations continued to flourish.  Canada ha d made significant investments in the energy, 
petrochemical, and financial services sectors in pa rticular.  The two countries shared cooperation and 
expertise in many areas including oil and gas, e ducation, health and information and communication 
technologies (ICT).  Canada had played a significan t role in developing Trinidad and Tobago’s 
National ICT Plan and would continue to support the country’s goal towards becoming a knowledge-
based society by the year 2020. 
52. Canada thanked the Government of Trinidad  and Tobago for allowing the resumption of 
Canadian boneless beef import from animals under 30 months.  Canada acknowledged and 
appreciated the Government's science-based approach  in addressing the matter, and looked forward to 
continued cooperation on the removal of the remaining restrictions on beef and live animals.  Canada 
recognized the important steps Trinidad and T obago had taken to achie ve exceptional economic 
growth in the past seven years through the deve lopment of its energy-related activities.  Canada 
encouraged the Government to continue di versifying its economy by improving the economic 
performance of its manufacturing, services and agri culture sectors as well as further liberalizing its 
telecommunications sector to ensure sustainable development.  Canada commended recent steps taken to open wireless services to comp etition, but encouraged further me asures to promote competition in 
the sector. 
53. Canada noted the considerable informati on that had been provided on the national 
standardization system and approach to regulation,  and thanked Trinidad and Tobago for efforts in 
this area.  Most import surcharges had been el iminated or reduced, but there was a substantial 
difference between some of Trinidad and Tobago’s bound and applied tariff rat es.  Canada urged the 
authorities to narrow the gap between bound and applie d tariff rates, and to ensure that no applied 
rates exceeded the bindings. 
54. Trinidad and Tobago was continuing to devel op its financial services sector, and Canada 
encouraged the Government to make every effort to block opportunities for the laundering of illicit 
earnings through the legitimate trading economy.   Given the importance Trinidad and Tobago 
attached to attracting domestic and foreign invest ment, Canada urged furthe r consideration in the 
reform of the government procurement system to  allow for a more transparent and competitive 
bidding process. 
55. Canada commended the Government of Trinid ad and Tobago for its commitment to and 
extensive support  for regional integration and its  active participation in the WTO.  Canada WT/TPR/M/151 
Page 13 
 
 
acknowledged Trinidad and Tobago’s advocacy for sp ecial and differential treatment for developing 
country Members and recognized the challenges faced by small economies in participating fully in the 
global economy and implementing the WTO Agreements. 
56. The representative of the United States  noted that there had been positive developments in 
Trinidad and Tobago since its last Review.  Th e Government was making headway with economic 
reform, including efforts to enhance the competitiv eness of the energy sector by attracting foreign 
direct investment in exploration activities.  Th ere had been reform in services sectors, notably 
financial services and telecommunications, and th ere was the commendable Vision 2020 objective to 
try to fully develop the islands by the end of the next  decade.  These efforts seem ed to be paying off.  
There was a strong record of growth in real GDP  and a robust expansion in  merchandise exports.  
Higher energy prices had played a part, but the sta tistics revealed growth in other product categories, 
too, such as chemicals, fertilizers, and iron and steel. 
57. Bilaterally, the United States enjoyed a strong trad e and investment relationship with Trinidad 
and Tobago.  The United States was Trinidad and T obago's largest trade and investment partner, and 
extended preferential trade benefits to Trinidad  and Tobago under the Caribbean Basin Initiative 
(CBI) and the GSP. 
58. Like many other WTO Members, Trinidad  and Tobago was pursuing its trade policy 
objectives on a variety of fronts.  Regionally, th e United States appreciated Trinidad and Tobago's 
strong support for the Free Trade Area of the Americas negotiations, and recognized the importance 
to Trinidad and Tobago of the CARICOM Single Market and Economy Initiative.  The United States 
hoped that this initiative would convey great benefits, not just in economic terms, but also in helping 
members capitalize on scarce administrative resources in  their efforts to expand their trade.  Most 
important of all, the United states was gratified th at Trinidad and Tobago was pursuing its bilateral 
and regional initiatives in a manner that was complementary to multilateralism. 
59. The United States requested further informati on from Trinidad and Tobago regarding a few 
specific issues in the Secretariat Report.  On tari ffs, Trinidad and Tobago had trimmed the application 
of tariff surcharges to only a few items, and had brought  most of its applied tariffs within the scope of 
its tariff bindings;  only 40 or so tariff lines exceed ed bound rates.  The United States asked to hear 
more about plans to continue with tariff reform, particularly for the many products where bound rates 
were greatly exceeded.  On subsidies, the Unite d States had requested information about several 
programmes;  a fresh notification to the Subsid ies Committee could go a long way in helping to 
understand the intent and effect of these programmes.  With respect to privati zation, the United States 
was interested to know of any plans to rekindle pr ivatization activities, particularly given the wide 
reach of the state-owned sector in Trinidad and Tobago's economy and that some enterprises were profitable.  A strong intellectual property rights re gime was important in attracting foreign investment 
and in developing and diversif ying the domestic industrial base;  the United States had asked a 
number of specific questions, and would especially  appreciate more information about steps to 
improve copyright enforcement. 
60. The representative of the European Communities
 stated that the EC had well-established 
relations with Trinidad and Tobago also thr ough cooperation on trade arrangements, aid, and 
development.  The economy of Trinidad and Toba go was moving fast;  by taking full advantage of 
favourable conditions particularly in the ener gy sectors, Trinidad and Tobago had become an 
important beneficiary of foreign investment.  The investment boom in the energy sector had also spurred activity in construction, distribut ion, transport, and local manufacturing. 
61. Since the last Review of Trinidad and Tobago, important efforts had been made to liberalize 
and enhance the transparency of the trade regime.  The EC noted efforts aimed at strengthening the WT/TPR/M/151 
Page 14 
 
 
administrative and legal framework, laying the basic foundation for a stronger economy;  trade liberalization through lower applied tariffs;  and th e continuation of the targeted reform process, 
including attempts to further privatize state-owne d companies with a view to increasing private sector 
development.  The Vision 2020 was a national stra tegy to address development objectives;  such 
strategies were vital.  It was also vital that trad e and development go hand in hand.  No matter how 
much aid was given, aid could not replace trade as the main engine for development. 
62. Steps towards development had already provided progress beyond that derived from oil only.  
Further steps could ensure an even more stab le economy, continued growth, and sustainable 
development.  For example, efforts could cont inue to introduce a competition policy, as well as 
further reforms in maritime transport, financial, tourism,  and telecommunication services;  all core 
sectors in terms of development.  Trinidad and Tobago had streamlined the customs administration 
through increased efficiency;  further reform, to  simplify the duty regime, would enhance trade 
further, as would greater lowering the gap between  the applied and bound tariffs.  Trinidad and 
Tobago should also consider the benefits that c ould be harvested from more efficient government 
procurement;  the Agreement on Government Proc urement could be of help in this respect. 
63. Trinidad and Tobago had been an active par ticipant in the WTO and had shown a strong 
interest in promoting a multilateral trade agenda, while also seeking to enhance its development 
through regional integration in the framework of  the CARICOM.  The EC was encouraged by 
Trinidad and Tobago’s efforts to seek market-ope ning through regional and bilateral trade agreements 
with other developing countries.  Bilateral and regional trade that was compatible with the rules and 
obligations of the WTO was an important tool for promoting trade, not least among developing 
countries.  It would be beneficial  for its development, provided that  Trinidad and Tobago continued to 
fully support the WTO system and its further deve lopment, given that mu ltilateralism remained the 
most certain way to promote the interests of Tr inidad and Tobago, as any other, small country. 
64. The representative of Brazil
 commended Trinidad and Tobago for its strong economic 
growth, which had reached, in average, 7.7% per year during the period 1999-04, thanks, largely to 
the performance of the energy sector, which accounted for over a third of the GDP and over 80% of 
exports.  As a result, per capita income had incr eased, unemployment rates had fallen, and the fiscal 
situation had improved.  Brazil also welcomed  the positive economic outlook for Trinidad and 
Tobago in the coming years. 
65. According to the Secretariat Report, despite th e efforts to promote other economic activities, 
Trinidad and Tobago's, reliance on the hydrocarbon s ector had increased.  Brazil encouraged Trinidad 
and Tobago to further improve resource allocation an d diversify its production base in order to ensure 
the sustainability of economic growth in the framework of the Vision 2020. 
66. His delegation took note of the continuous effort s by Trinidad and Tobago to consolidate the 
reform and liberalization processes started in th e 1990s.  Trinidad and Tobago had bound its whole 
tariff schedule in the WTO, which increased the pred ictability of the trade regime, and had taken an 
important step in eliminating or reducing most  import surcharges.  In particular, government 
intervention in agriculture, in which sugar productio n continued to be the cornerstone, had decreased 
in recent years. 
67. The representative of Cuba  highlighted that Trinidad and Tobago was a small, insular country 
and a developing economy, despite its fast economic growth over th e 1999-04 period.  This growth 
had been due partly to the excellent results of th e energy sector, which was the engine of growth of 
the economy.  The Government's efforts to dive rsify the economy, and expand the non-energy sector 
were understandable;  in this respect, obtaini ng new market access possibilities was one of the 
Government's priorities in th e Doha Development Agenda. WT/TPR/M/151 
Page 15 
 
 
68. Trinidad and Tobago had always been an active and important participant in the negotiations 
and work of the WTO.  Trinidad and Tobago's Am bassador to the WTO had shown his leadership in 
the coordination of the ACP Group;  he had made important contributions to the negotiating process 
and to the development goals reflected in the Doha Ministerial Declaration. 
69. Bilaterally, Trinidad and Tobago was Cuba's  largest trading partner among the CARICOM 
countries.  Cuba had engaged in commercial missions to Trinidad  and Tobago, and entrepreneurs 
from Trinidad and Tobago had participated regularly in the Havana International Fair.  A Second Mixed Commission Cuba-Trinidad and Tobago mee ting had taken place in March 2005, and trade 
issues of interest to both countries had been discu ssed.  As a further example of the cooperation 
between the two countries, numerous Cuban health professionals, physicians, and technicians were 
working in Trinidad and Tobago. 
70. The representative of Jamaica
 congratulated the Government and people of Trinidad and 
Tobago on their sterling economic performance, achie ved despite the various challenges they faced, 
along with other small economies.  This outcome had been greatly assisted by favourable conditions 
in the hydrocarbons sector, but the Government’s ma nagement of the macro-economy, its prudence in 
the management of available resources, and its comm itment to a vision of the future had been critical 
variables in bringing about this outcome.  As a leading member of CARICOM, Trinidad and Tobago 
had participated actively in the implementati on of the CARICOM Single Market and Economy;  
Jamaica noted with satisfaction the increasingly impor tant role of the regional arrangement in the 
growth and development of the Trinidad and Toba go economy, including and importantly as a means 
of fostering its gradual and effective integration in to the wider regional and global trading systems. 
71. In the past five years, the economy had grown at an average rate of 7.7% and GDP had 
expanded by more than half.  Per capita income had risen by almost two thirds, and unemployment 
had fallen by more than a third.  This was comme ndable, not merely in quantitative terms, but in 
terms of an improved quality of life for the people of Trinidad and Tobago.  It was important to draw 
attention to the open nature of the small economie s of CARICOM, including Trinidad and Tobago.  
As indicated in the Secretariat document, trade in goods and services accounted for about 95% of GDP underscoring that the small economies of the Ca ribbean region were, in relative terms, major 
participants in global trade.  The outcome of tr ade negotiations in the WTO were thus of vital 
importance to them. 
72. Despite its excellent economic performance, th e Trinidad and Tobago economy had to cope 
with some of the constraints and characteristics of small size.  The hydrocarbons sector accounted for 
one third of GDP and two thirds of merchandise exports, underscoring the critical importance of 
competitiveness and diversification of the economy.  This also underscored the vital importance of 
access to external markets and of strengthening trad e and economic linkages in the region, within the 
hemisphere, and multilaterally.  Trinidad and T obago’s Vision 2020 initiative was intended precisely 
to facilitate and achieve this. 
73. As a final point, Jamaica recalled the purpose of Trade Policy Reviews.  They were not 
intended to serve as a basis for enforcement of speci fic WTO obligations, but as a means of achieving 
greater transparency in and understanding of the trad e policies and practices of Members, and this, not 
in a vacuum, but against the background of the wider economic and development needs, policies and 
objectives of the member concerned, including of th e external environment.  Jamaica hoped that the 
documentation, and the proceedings of this Review , would contribute to fostering amongst Members a 
deeper collective appreciation of the continued importance of these trade policy measures and instruments, which served to build capacity a nd strengthen competitiveness in small economies.  
Reviews such as this should help to give a better idea of what worked and what did not.  In this 
context, Jamaica noted that the Trinidad and T obago economy had performed strongly over the five WT/TPR/M/151 
Page 16 
 
 
years that the current Review en compassed.  This reflected positively on the country under review, 
and specifically on its trade and economic orienta tion, and its trade policy measures and practices. 
74. The representative of Barbados  congratulated Trinidad and Tobago on its sound economic 
performance in the face of continuing difficulties experienced by small, vulnerable economies around 
the world, and specifically in the Caribbean.  Trinidad and Tobago’s success in achieving robust 
economic growth over the period 1999-04 was a concrete  dividend of its Governme nt’s stated strategy 
of consolidating the reform, liberalization, and in tegration processes commenced in the last decade. 
75. As a neighbouring Caribbean island, as well as a sister CARICOM member and a co-
participant in the emerging Single Market and Ec onomy, the past and present of Barbados and 
Trinidad and Tobago were closely linked as would be their future.  The sub-regional integration 
partners shared a growing interdependence of their economies.  As noted in the reports under 
consideration, CARICOM partners  had harmonized their external trade policy initiatives in both the 
hemispheric and multilateral spheres.  This growin g harmonization and interd ependence, as well as 
economic and developmental similarities, meant that  Barbados’ and Trinidad and Tobago’s interests 
in fora  such as the WTO coincided to a very high degree.  Therefore, her delegation fully shared the 
positions outlined in Trinidad and Tobago’s trad e policy report, on issues such as the needs and 
concerns of small, vulnerable econo mies;  the importance of keeping development at the core of the 
ongoing negotiations;  and the priority that must be  accorded to forging a development path in the 
multilateral trading system for developing count ries, and in particular for small economies. 
76. It was imperative that small economies be allo wed the flexibilities required to formulate and 
implement trade policies in accordance  with their developmental needs.   In this context, Barbados 
hoped that its trading partners w ould engage constructively and pos itively to ensure that progress in 
the Work Programme on Small Economies was acceler ated and that specific measures were adopted 
at the Hong Kong Ministerial Conference to facilitate  the integration of sm all developing economies 
into the multilateral trading syst em.  Such measures would enable countries like Trinidad and Tobago 
to continue to pursue successfully their trade lib eralization, economic reform, and developmental 
objectives. 
77. The representative of the Dominican Republic  stated that Trinidad and Tobago was an 
increasingly important destination for her country's exports, due both to its geographic vicinity as well 
as to the free-trade agreement between the Domini can Republic and CARICOM.  This agreement had 
been implemented for trade in goods;  it was impor tant to complement it with services, given the 
importance of services for the economy of the Dominican Republic. 
78. The Dominican Republic commended Trinidad and Tobago for its efforts since its last TPR, 
both in relation to regulatory reforms in the ser vices sector – such as those in the financial and 
telecommunications sectors – and to the management of its economy.  In this respect, she highlighted 
the improvement in the fiscal accounts, through a tightening of current expenditure, as well as the 
depositing of surpluses generated from higher oil prices in a stabilization fund, aimed at reducing the 
vulnerability of the economy to external shocks .  The Dominican Republic also welcomed the 
measures to reduce import surcharges, and encourag ed Trinidad and Tobago to continue with its 
intensive reform agenda, which included the r estructuring of the Port Authority, and the 
commercialization of port services, as well as deepen ing the regulatory reform in telecommunications. 
79. The representative of the Republic of Korea  highlighted Trinidad and Tobago's strong 
economic growth since its Review in 1998, underp inned by prudent macroeconomic policy and the 
expansion in the energy sector.  Korea encouraged Trinidad and Tobago to keep up its efforts to 
strengthen the policy framework conducive to sustained growth, including trade liberalization, industrial diversification, attracting foreign inv estment, and maintaining macroeconomic stability. WT/TPR/M/151 
Page 17 
 
 
80. Korea valued highly Trinidad and Tobago’s co mmitment to the multilateral trading system 
and its active participation in the WTO and the DDA negotiations.  Trinidad and Tobago had fulfilled 
most of its WTO notification obligations, with only a few exceptions.  In the DDA negotiations, 
Korea welcomed Trinidad and Tobago's initial offe r on services in June 2005.  Korea encouraged 
Trinidad and Tobago to continue its efforts to br ing trade rules and practices into conformity with 
WTO rules and to participate in the DD A negotiations in a constructive manner. 
81. Trinidad and Tobago had bound 100% of its ta riff lines and eliminated or reduced most 
import surcharges.  However, it was a source of concern that applied MFN rates still exceeded bound 
rates for 44 tariff lines.  Korea was interested in learning what progress had been made to address this 
matter.  Also, reducing the gap be tween the bound and applied rates would give further security of 
access to its market by enhancing the predictability of  the tariff regime.  Korea welcomed the efforts 
to enhance the efficiency, effectiveness, and tran sparency of the government procurement process.  
The use of selective tenders had been reduced fro m about 50% of all tenders in 1998 to 31% in 2004 
and competitive tenders were becoming the norm;  this was welcome progress.  Trinidad and 
Tobago’s participation in the activities of the Gove rnment Procurement Committee, by first obtaining 
observer status, would provide further useful guida nce in its endeavour to enhance its government 
procurement regime and achieve value for money, transparency, and accountability. 
82. The representative of Hong Kong, China  noted that its trading relationship with Trinidad and 
Tobago was small and untroubled.  Hong Kong's expe rience with unexpected revenue flushes, albeit 
from a different source (land sales), was that they must  be treated very carefully, that they could not 
be taken for granted in the long term, and that they  must therefore be husbanded very prudently.  The 
temptation and the political pressure to spend them  on all manner of good ideas could be intense and 
should be resisted.  Traditionally, Hong Kong, China had reserved this revenue for major capital 
works, but it had occasionally had some difficulties linke d to the recurrent costs of such investment.  
He was delighted that the emphasis in Vision 20/20 was on investment in human resources, as part of 
long-term structural reform.  Investme nt in human capital was never wasted. 
83. Hong Kong, China maintained a zero tariff regime  and recommended this approach;  for those 
who found this too difficult in the short term, he urged on behalf of his country's traders greater predictability through the elimination of the diffe rence between bound and app lied rates.  Hong Kong, 
China regretted the increased use of AD measures.  Hong Kong, China was not enthusiastic about 
competition legislation, preferring  the establishment of an open and equitable investment regime and 
the progressive privatization of sectors previously dominated by the Government, accompanied by sector-specific domestic regulation.  If, despite this , market failure was encountered, then particular 
sector-specific remedies should be considered, but Hong Kong, China cautioned against any over-
arching competition policy legislation.  Similarly,  on Government Procurem ent, althoug h Hong Kong, 
China had signed up to this Agreement, it cautioned against moving too fast, particularly while large 
players continued to reserve signifi cant advantages to domestic suppliers. 
84. Hong Kong, China complimented Trinidad a nd Tobago on the lead it had shown in the 
services sector and the openness demonstrated in its  regional commitments.  In the context of this 
Round, Hong Kong, China hoped to see this openness and these commitments extended on a 
multilateral basis.  Hong Kong, China welcomed Trinidad and Tobago's firm commitment to the 
multilateral system and the success of the Doha Round. 
85. The representative of Mexico
 noted that the economies of Trinidad and Tobago and of 
Mexico were linked by geographical vicinity, and by  being part of the numerous trade liberalization 
and harmonization efforts in the western hemisphere.  He highlighted the role played by Trinidad and 
Tobago in the negotiations to create a Free Trade Area of the Americas, and, more importantly, in the WT/TPR/M/151 
Page 18 
 
 
creation and evolution of CARICOM, including the establishment of a common market.  Trinidad and 
Tobago had a network of bilateral trade treaties. 
86. Bilateral trade between Mexico and Trinidad and Tobago remained small and had fluctuated 
in recent years, although it had always resulted in a deficit for Mexico.  Mexico hoped that trade between the two countries would increase in both di rections, especially considering Trinidad and 
Tobago's positive economic prospects and good credit rating.  Although bilate ral and regional trade 
was important, it was also necessary to move in the multilateral framework.  Mexico was pleased to note that Trinidad and Tobago attached great impor tance to the multilateral trading system and to 
current WTO negotiations.  Mexico commended Trinid ad and Tobago for the presentation of its initial 
offer in services in June 2005. 
87. Mexico was concerned however, about a few el ements of Trinidad and Tobago's' trade 
policies underlined in the Secretariat Report.  Th ese included:  the wide gap between applied and 
bound tariff rates;  the lack of legislation on comp etition;  shortcomings in the application of the 
transparency measures contained in the SPS Agreemen t;  and the still insufficient market opening in 
services.  Mexico also found shortcomings with resp ect to the procedures to prepare regional technical 
regulations, as well as with respect to compliance wi th the obligations under the TBT Agreement, in 
particular those related to transparency.  Mexico c onsidered that much was left to be done in those 
areas and hoped that action to address those anom alies, which distorted and prevented a positive 
evolution of trade. 
88. The above notwithstanding, Mexico commende d Trinidad and Tobago for the legal and 
administrative reform measures implemented during the period under review, for example in 
telecommunications, standardization, and intellectual pr operty;  these were steps in the right direction. 
89. The representative of Grenada
 speaking on behalf of the OECS  countries, noted that the 
OECS had a good relationship with Trinidad and Toba go, and was an important market for its goods.  
The fast growth rate of the Trinidad and T obago economy would have a positive impact on OECS 
growth.  Trinidad and Tobago was an important ally of the OECS countries in the multilateral trading 
system and had provided technical assistance to help them participate in the system. 
90. The observer from the FAO  noted that Trinidad and Tobago's economy was in fast expansion, 
especially due to the current situation in the hydr ocarbons sector.  It was evident from the Secretariat 
Report that agriculture was of marginal relevan ce for the economy of Trinidad and Tobago.  The 
sector was undergoing a contraction, and he asked  whether the delegation of Trinidad and Tobago 
could provide more information on the structural reas ons, if any, for this situation, as well as the short 
and medium-term prospects of the sector and the m easures that the Government was planning to adopt 
to reverse this trend. WT/TPR/M/151 
Page 19 
 
 
V. REPLIES BY THE REPRESENTATIVE OF TRINIDAD AND TOBAGO AND 
ADDITIONAL COMMENTS 
91. In his initial responses on 14 September, while  the representative of Trinidad and Tobago  
stated that although the average tariff was 9.1%, it was, in practice, about 3.4%, which was extremely 
low.  With respect to the question on actions to  promote a knowledge-based economy, he pointed out 
that this was part of the mandate of the new Univ ersity of Trinidad and Tobago and noted that the 
Wallfield Industrial Site Trinidad, was focused  mainly on the knowledge-based sector.  The 
Government of Trinidad and Tobago had identified education as the number one priority, followed by 
health, housing, security and social sector reform .  Regarding unemployment, he pointed out that 
while the average for 2004 was 8.3%, in the third quarter of 2004 the unemployment rate was 7.7%, 
with male unemployment at some 4.4%.  The Gove rnment was looking at an initiative to bring in 
labour especially for the construction sector from some other CARICOM countries. 
92. With respect to the revenue stabilization fund,  the base price of US$25 per barrel had been 
determined a few years ago when it was the expect ed medium-term price.  Trinidad and Tobago had 
based its expenditure estimates for fiscal year 200 4/05 on that price;  oil sector revenues had been 
estimated at US$32.80 a barrel, and the difference between the two figures had been appropriated to the revenue stabilization fund immediately.  Although the commitment had been to put 60% of this difference in the fund, the Government had allocat ed 100%.  However, at present, with increasing 
prices, the Government was allocating 60% of the excess between the annual average price of 
US$45.60 and the US$32.80 revenue estimate, and appr opriating it to the revenue stabilization fund.  
This would add roughly the TT$2.6 billion to the fund in 2005. 
93. With respect to a question on food price incre ases over the period, he noted that that was 
linked partly to insufficient supply.  The Govern ment was taking action in this respect, and had 
recently allocated two-acre parcels to roughly 7,2 70 CARONI employees, and planned to have them 
grow certain crops on this land.  The Government wa s also looking at providing some type of funding 
for targeted groups to increase production, and expect ed to do so in the short to medium term.  The 
Government was also expecting to allow high leve ls of imports of vegetables in the short term. 
94. The representative acknowledged that there was a sizeable fiscal deficit in the non-energy 
sector.  It was government policy to use some of the excess revenues in the energy sector to build 
sustainability in the non-energy sector, and the Gove rnment expected to run a non-energy deficit for 
some time as it built sustainability.  Foreign direct  investment had been mostly, but not only, in the 
energy sector.  The legislation on incentives was outdated and seldom used, and was currently under 
examination.  The issue of bound versus applied tariff rates had come up time and time again;  he 
considered this to be an issue of the concept of  policy space.  As part of CARICOM, Trinidad and 
Tobago used the common external tariff, and some of  its bound rates were higher than applied rates.  
He believed that Trinidad and Tobago needed th at policy space as there was no guarantee that its 
energy resources would last forever, and most of all that the prices would continue to be high. 
95. He had taken note of Members concerns with respect to the use of anti-dumping measures.  
Trinidad and Tobago would look at that.  Ther e had been 11 or 12 anti-dumping cases since 1995, and 
where there was a ruling there was in fact injury.  In government procurement, a white paper, had 
taken into consideration the issues of competitiv e bidding.  The Competition Fair Trading Act had 
been passed in the lower house ju st before it was adjourned.  The business community had stated 
some concerns and therefore it had been decided to look at it again when the Parliament was back in 
session as of 26 September. 
96. In his presentation on 16 September, the representative of Trinidad and Tobago
 provided 
comprehensive answers to the questions raised. WT/TPR/M/151 
Page 20 
 
 
Economic and institutional environment 
97. Since the last Review, in 1998, the Trinidad and Tobago economy had enjoyed acceleration in 
economic growth, driven mainly by the hydrocarbo n sector, and a halving of the unemployment rate, 
from 14% to 7.7% as of December 2005.  This w as, by any standard, a remarkable achievement, 
given the strength of the capital-based hydrocar bons sector.  Growth had been accompanied by 
relatively low inflation, close to that in Trinid ad and Tobago's major trading partners.  The main 
policy goal was to build sustainability.  Headline in flation had trended upwards , due mainly to higher 
food prices.  However, with the reorganization of  CARONI 1975 Ltd, and the distribution of land, 
supply-side issues with respect to food were expected to be addressed in the short-term. 
98. Since its last Review, Trinidad and Tobago' s fiscal accounts had strengthened considerably, 
posting considerable primary surpluses.  This had a llowed the Government to establish a Heritage and 
Stabilization Fund with the following main objectives:   (a) to sustain public expenditure capacity 
through periods of revenue downturns;  (b) to su stain public expenditure in the face of revenue 
decline from the possible depletion of oil and gas na tural resources, thus being a vehicle for ensuring 
inter-generational equity;  (c) to undertake the strategic investments necessary to advance economic 
transformation and diversification.  At the end of FY 2005, the balance in the Fund would be in 
excess of TT$5.1 billion. 
99. Trinidad and Tobago maintained an open, tran sparent, investment regime that afforded 
national treatment to foreign investors.  Trinidad  and Tobago was in the process of drafting a new 
investment policy that would go beyond addressing the identified inadeq uacies of the Foreign 
Investment Act, 1990.  The aim was to develop a more friendly environment for both domestic and 
foreign investment.  Some of the proposed chang es included:  identifying agencies with the clear 
responsibility for promoting and facilitating investme nts, depending on their nature;  reforming the 
EXIMBANK;  removing the current licensing require ment foreign investors when acquiring more 
than 30% ownership of a company;  a comprehens ive list of incentives for investors;  no transfer 
restrictions, other than in the public interest;  explicit provisions deali ng with expropriations;  
provisions for dispute settlement;  and clear, predictable, and transparent rules. 
100. Trinidad and Tobago continued to pursue trad e initiatives in a context that recognized both 
regional and bilateral trade agreements as complement ary to multilateral agreements.  In this regard, 
Trinidad and Tobago had been an active member of CARICOM and was on target for meeting the 1 
January 2006 deadline for the full implementation of the Single Market component of the CARICOM Single Market and Economy.  Trinidad and Tobago  had sought expanded market access with third 
countries through the regional grouping, which it belie ved fostered the gradual integration of its 
economy into the multilateral trading system. 
101. Trinidad and Tobago was an active WTO Memb er as it considered multilateralism to be 
pivotal to the formulation of trade policy.  The sy stem was indispensable for the continued growth of 
its economy.  Trinidad and Tobago viewed the devel opments in the multilateral trading system with a 
great deal of optimism, providing support for the ad vancement of the work in the July Package, and 
was committed to contributing towa rds the successful conclusion of the Doha Round.  Trinidad and 
Tobago supported the concept of less than full reciprocity in the WTO. 
Trade policies by measure 
102. Trinidad and Tobago had bound its entire tariff in  the WTO.  The anomaly with respect to the 
44 lines with rates currently exceeding their WTO bindi ngs, would be reviewed in the context of the 
CARICOM CET.  Customs-related duties and char ges had fallen from 5.2% to 4.7% of total 
government revenue since the last Review.  Taxes on international trade had also fallen, from 1.9% of WT/TPR/M/151 
Page 21 
 
 
GDP to 1.7% in 2004.  High tariffs were maintained  in a minimum number of sectors in keeping with 
growth and development objectives.  In addition, hi gh tariffs were maintained, in a few areas that 
were sensitive to the CARICOM region in keep ing with WTO commitments.  The representative 
stressed that Trinidad and Tobago did not depend on tariffs for revenue purposes. 
103. Import surcharges remained on sugar and poultry.   These had been identified as special 
products and as such there were no plans for reducti on.  The import negative list essentially contained 
items subject to international agreements, and health and national security concerns. 
104. Trinidad and Tobago was committed to the continuous employment of trade facilitation 
measures so as to realize fully the benefits of inte rnational trade.  It was committed to improving the 
efficiency of its major ports of entry and wa s planning to introduce scanning facilities with the 
coming on-stream of ASYCUDA++ in 2006. 
105. With respect to technical barriers to trade, Trinidad and Tobago had noted the discrepancy 
between the notification and comment periods and would put measures in place in this respect.  
Trinidad and Tobago assured WTO Members that the accreditation and conformity assessment 
functions of the Bureau of Standards were performed  independently of each ot her, but the Bureau of 
Standards was prepared to use the services of accredit ed private conformity assessment bodies to test 
against its mandatory standards.  Safety was an im portant issues for Trinidad and Tobago, given that 
it was a primary importer of GMOs and their product s.  As a consequence, in September 2003, the 
Government had established a Committee for the De velopment of a National Policy and Regulations 
on Biosafety. 
106. Trinidad and Tobago assured Members that the export allowance granted to locally 
incorporated companies for exports to non-CARI COM countries had been discontinued in 2000 and 
had not been replaced with any similar mechanism.   There were currently no export incentives in 
manufacturing.  With respect to free zones, any goo ds imported to the customs territory of Trinidad 
and Tobago from free zones were subject to the same  duties, taxes and other import requirements as 
goods imported from extra-CARICOM markets. 
107. The provision of various incentives in Trinidad and Tobago had played a major role in 
attracting foreign investment when properly targ eted.  The incentive re gime was currently under 
review to minimize any possible resource allocat ion distortion.  Trinidad and Tobago assured 
Members that its tax incentives were consistent with the TRIMs Agreement.  Local content under 
TRIMs was a defined term that connoted a definite  requirement or imposition.  Trinidad and Tobago 
had no local requirement for tax-related incentives.   Under the Fiscal Incentives Act, local value 
added was one of the criteria for the provision of incentives to an investor, domestic or foreign.  
However, it was not mandatory.  Since it was merely  one of the criteria, the incentive could still be 
allowed, notwithstanding the level of local value added. 
108. State-owned enterprises had always played an im portant role in the economy of Trinidad and 
Tobago.  Most privatization initiatives had taken pla ce prior to Trinidad and Tobago's first Review.  
The present portfolio of state enterprises contained a number of strategic and non-strategic entities.  The Government would continue the privatization of  non-strategic commercial state enterprises;  it 
would maintain its investment in enterprises in strategic areas. 
109. Trinidad and Tobago was in the process of re forming its government procurement regime and 
it was envisaged that the procurement system w ould be operationally decentralized, flexible, and 
transparent.  All procuring agencies would be di rectly responsible for their own procurement and 
therefore directly accountable for the quality of their decisions and the efficiency of their systems.  WT/TPR/M/151 
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This would promote greater accountability and transp arency, greater efficiency, and enhance public 
confidence.  The participation of small en terprises in procurement would be promoted. 
110. Trinidad and Tobago was committed to a strong in tellectual property regime, and some of its 
laws provided wider protection than anticipated in the TRIPS Agreement 
Sectoral policies 
111. The representative of Trinidad and Tobago pr ovided answers to the questions raised on 
sectoral policies, both in the country's wr itten answers and in his Speaking Notes. 
112. The discussant  stated that, in his view, Trinidad and Tobago had a very modern trade policy.  
He raised questions with respect  to the Stabilization Fund and noted that as the Fund grew, deposits 
needed to be invested responsibly.  He encour aged the authorities to continue diversifying the 
economy and to increase competitiveness.  He enquire d about the polices to encourage non-energy 
sectors. 
113. The representative of Mexico  asked for information with respect to the basis for the 
development of regional standards. 
114. The representative of the United States  requested information on developments in the area of 
intellectual property, in particular copyright. 
115. The representative of Japan  asked for further comments for the transparency in making new 
domestic regulation, if any. 
116. The representative of Canada  requested further information of trade mark infringement. 
117. The representative of Korea  sought more information on government procurement. 
118. In response, the representative of Trinidad and Tobago  noted that it was important to use oil 
surpluses to invest in other sectors, and that this  was done through Trinidad and Tobago's yearly 
investment programme.  He noted that regional st andards were based on national standards.  With 
respect to copyright enforcement, a collective mana gement organization deali ng with reprography had 
been established affiliated with the International Federation of the Phonographic Industry.  There 
were provisions with respect to trade mark in fringement in Trinidad and Tobago law, and 
unauthorized use of a trade mark in Trinidad and Tobago was a criminal offence.  With respect to 
government procurement, he noted that as per th e White Paper on Government Procurement, each 
agency would be in charge of its own procurem ent guidelines, and there would be penalties for not 
following these guidelines.  Set-asides of 10% w ould be established for small and medium-sized 
companies, and a 10% leeway would be granted to local companies in open bids. WT/TPR/M/151 
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VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
119. This second Trade Policy Review of Trinidad  and Tobago has contributed to a better 
understanding of its current trade policy regime.  The preparation of the Country Report and the 
written responses to the questions by Members ha ve provided a valuable opportunity for domestic 
assessment of trade policy.  The Country and Secr etariat Reports, and the exchange between Members 
during the Review, have contributed to transparen cy within the WTO, provided valuable resource 
documents for all Members, and offered very useful  food for thought for Trinidad and Tobago in the 
pursuit of continued development.  The particip ation of Minister Kenneth Valley, Permanent 
Secretary Leacock and their delegation has greatly contributed to our work, for which we express our 
sincere thanks.  Our thanks are also due to our  discussant, Ambassador Glenne, for his excellent 
contribution to our discussions, and to the many Memb ers who have intervened to contribute to the 
success of this review. 
120. Members commended Trinidad and Tobago for it s very good economic performance since its 
last Review in 1998.  This success reflects a favour able external environment and, more importantly, 
Trinidad and Tobago's commitment to outward-oriented policies and to the principle that free trade is 
the most viable option to achieve social and economic progress.  Members also welcomed the creation of a hydrocarbons stabilization fund and Trinidad and Tobago's emphasis on investing in human capital.  This approach bodes well for its efforts to further reform and diversify its economy, and thus 
achieve the ambitious objectives of Vision 2020, its national development strategy. 
121. Members highlighted Trinidad and Tobago's positiv e and active role in the WTO, both within 
its day-to-day operation and in the DDA negotiati ons.  Its submission of an initial offer on services 
was commended.  Trinidad and Tobago's strong position in the CARICOM was noted, and Members 
welcomed its commitment to pursuing regional  initiatives in a manner complementary to the 
multilateral trading system. 
122. Members recognized that Trinidad and Tobago ha d a generally open trade regime, but noted 
that it would benefit from further reform.  It w as observed that Trinidad and Tobago had bound its 
entire tariff in the WTO and that, since its last  Review, had trimmed the surcharges applied on 
agricultural imports.  Trinidad and Tobago was ur ged to narrow the gap be tween applied and bound 
tariff rates so as to enhance the predictability of its  trade regime.  Some applied tariffs apparently 
exceed bound rates, and Trinidad and Tobago engage d to examine measures to address this.  While 
recognizing Trinidad and Tobago's limited use of non-tariff charges on imports, some Members 
expressed concern about the increasing use of anti-dumping measures and about certain aspects of the SPS and TBT regimes. 
123. Trinidad and Tobago provided information on its investment regime and clarified a number of 
issues about its various incentive schemes.  Members welcomed Trinidad and Tobago's reform of the 
government procurement system and suggested it carry out further improvements.  Some Members 
also urged Trinidad and Tobago to introduce comp etition policy legislation.  Comments were also 
made with respect to privatization and other subjects such as import licensing, state-owned enterprises, and IPRs. 
124. Trinidad and Tobago was commended for its liberalization of the financial services and 
telecommunications sectors, but Members noted that fu rther steps are required, for example, to reform 
the maritime transport sector and promote competition in the telecommunications sector.  It was also 
suggested that Trinidad and Tobago close the gap between its GATS commitments and the actual 
greater openness of its services sector. WT/TPR/M/151 
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125. This brings us to the conclusion of the sec ond Review of Trinidad and Tobago.  We all 
appreciate Trinidad and Tobago's strong economic performance, underpinned as it has been by sound 
macroeconomic policies and structural reforms.  I welcome Trinidad and Tobago's active engagement 
in the multilateral trading system and its commitment to a trade regime that is open, sustainable, and 
aligned with the principles and objectives of the WTO.   I invite Trinidad and Tobago to give its trade 
regime greater predictability by enhancing its multila teral commitments in the context of the DDA.  
This would both help Trinidad and Tobago achieve  its ambitious developm ent goals and strengthen 
the multilateral trading system within which Trinid ad and Tobago has emerged as one of the most 
dynamic members. 
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