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PRESS RELEASE
PRESS/TPRB/90
13 November 1998TRADE
POLICY REVIEW BODY: REVIEW OF TRINIDAD AND TOBAGO
TPRB'S EVALUATION Back to top
The Trade Policy Review Body of the
World Trade Organization (WTO) concluded its first review of Trinidad and Tobago's trade
policies on 12 and 13 November 1998. The text of the Chairperson's concluding remarks is
attached as a summary of the salient points which emerged during the discussion. The
review enables the TPRB to conduct a collective examination of the full range of trade
policies and practices of each WTO member country at regular periodic intervals to monitor
significant trends and developments which may have an impact on the global trading system.
The review is based on two reports
which are prepared respectively by the WTO Secretariat and the government under review and
which cover all aspects of the country's trade policies, including its domestic laws and
regulations, the institutional framework, bilateral, regional and other preferential
agreements, the wider economic needs and the external environment. A record of the
discussion and the Chairperson's summing-up together with these two reports, will be
published in due course as the complete trade policy review of Trinidad and Tobago and
will be available from the WTO Secretariat, Centre William Rappard, 154 rue de Lausanne,
1211 Geneva 21.
Since December 1989, the following
reports have been completed: Argentina (1992),
Australia (1989, 1994 & 1998), Austria (1992), Bangladesh (1992), Benin (1997),
Bolivia (1993), Botswana (1998), Brazil (1992 & 1996), Cameroon (1995), Canada (1990,
1992, 1994 & 1996), Chile (1991 & 1997), Colombia (1990 & 1996), Costa Rica
(1995), Côte d'Ivoire (1995), Cyprus (1997), the Czech Republic (1996), the Dominican
Republic (1996), Egypt (1992), El Salvador (1996), the European Communities (1991, 1993,
1995 & 1997), Fiji (1997), Finland (1992), Ghana (1992), Hong Kong (1990 & 1994),
Hungary (1991 & 1998), Iceland (1994), India (1993 & 1998), Indonesia (1991 and
1994), Israel (1994), Jamaica (1998), Japan (1990, 1992, 1995 & 1998), Kenya (1993),
Korea, Rep. of (1992 & 1996), Lesotho (1998), Macau (1994), Malaysia (1993 &
1997), Mauritius (1995), Mexico (1993 & 1997), Morocco (1989 & 1996), New Zealand
(1990 & 1996), Namibia (1998), Nigeria (1991 & 1998), Norway (1991 & 1996),
Pakistan (1995), Paraguay (1997), Peru (1994), the Philippines (1993), Poland (1993),
Romania (1992), Senegal (1994), Singapore (1992 & 1996), Slovak Republic (1995), the
Solomon Islands (1998), South Africa (1993 & 1998), Sri Lanka (1995), Swaziland
(1998), Sweden (1990 & 1994), Switzerland (1991 & 1996), Thailand (1991 &
1995), Trinidad and Tobago (1998), Tunisia (1994), Turkey (1994 & 1998), the United
States (1989, 1992, 1994 & 1996), Uganda (1995), Uruguay (1992), Venezuela (1996),
Zambia (1996) and Zimbabwe (1994).
TRADE POLICY REVIEW BODY:
REVIEW OF TRINIDAD AND TOBAGO
CONCLUDING REMARKS BY THE CHAIRPERSON Back
to top
The first Trade Policy Review of
Trinidad and Tobago was conducted by the TPR Body on 12-13 November 1998. These
remarks, prepared on my own responsibility, are intended to summarize the main points of
the discussion; they are not intended as a full report. Further details of the discussion
will be fully reflected in the minutes.
The discussion developed under three
main themes: (i) economic environment; (ii) trade policy measures; and (iii) sectoral
policies.
Economic environment
Members congratulated Trinidad
and Tobago on its recent liberalization and economic reforms, which had resulted in steady
growth rates, low inflation and had attracted substantial foreign investment. However,
challenges remained, including dependency on the energy sector, high unemployment and a
still sizeable participation of the State in key sectors. Also, the traditional trade
surplus had turned to deficit in 1997, primarily as a consequence of a surge in imports.
There was also concern about the effect of lower oil prices on export earnings and
government revenue. Members welcomed the steps taken by Trinidad and Tobago to develop a
legal framework for competition policy and encouraged its prompt implementation. There was
some worry about the range, cost and coherence of the various incentive schemes,
particularly with respect to investment, for which procedures were also sometimes
cumbersome. Members encouraged Trinidad and Tobago to continue to seek the diversification
of economic activity and to accelerate the process of privatization, particularly in the
agriculture and energy sectors.
Members commended Trinidad and
Tobago on its commitments to the multilateral trading system particularly as seen by the
implementation of WTO agreements in some cases ahead of schedule. They acknowledged the
importance of Trinidad and Tobago's role within CARICOM.
The representative of Trinidad and
Tobago expressed his country's firm adherence to a rule-based multilateral trading system.
His country had willingly assumed the obligations resulting from the Uruguay Round.
However, he felt that the WTO needed to address the particular interests and needs of
developing country members and to ensure that sustained efforts were made towards
balancing the obligations assumed and the benefits derived from the system. He stressed
the need for new approaches to deal with the special treatment and differential treatment
for developing countries in the WTO, for example through the provision of technical
assistance and through technology transfer. As a small island economy, Trinidad and Tobago
fully supported initiatives in international fora to identify measures to integrate small
states into the global economy.
On the issues raised by Members, the
representative of Trinidad and Tobago said his Government had undertaken a trade reform
programme to diversify the economy away from the petroleum sector and to improve
employment opportunities. Unemployment had already declined significantly. On the trade
deficit, capital imports had been an important factor. He identified several sectors with
the potential for sustainable export-led growth, including financial services,
agro-processing, software development, specialty chemicals, engineering goods and
services, and cultural tourism. Future economic strategies would include continued efforts
to attract foreign investment and to foster the development of small businesses, tourism
and light manufacturing sectors. The representative noted that the process of amending
investment legislation would lead to a simplification of procedures and enhance
transparency.
Trade policy measures
Members welcomed Trinidad and
Tobago's trade liberalization, including a lowering of tariffs, virtual elimination of
quantitative restrictions and a reduction in the scope of import licensing. In encouraging
Trinidad and Tobago to continue with these efforts, Members raised a number of questions
particularly with respect to: the gap between applied and bound tariff rates; high import
surcharges on agricultural products; import licensing; notification of legislation dealing
with anti-dumping and countervailing measures; standards and technical regulations; tax
allowances for exports; and intellectual property rights, especially with respect to
enforcement of copyrights.
In reply, the representative of
Trinidad and Tobago stated that the maximum tariff rate had been reduced from 45% to 20%
over five years, and that there were no immediate plans to lower tariffs further. Any
alteration of the Common External Tariff would require approval from the CARICOM Heads of
Government. With regard to the gap between applied and bound tariffs for agricultural
products, the Government intended to re-examine bindings upon completion of a review of
agricultural policies. The representative noted that only a few items were currently
subject to licencing, mainly for public safety and national security reasons, as well as
under CARICOM Treaty obligations. Trinidad and Tobago had amended its anti-dumping
legislation to ensure conformity with its WTO obligations; a notification in this respect
would shortly be submitted to the WTO. Apart from anti-dumping, Trinidad and Tobago had
amended its legislation and procedures in a number of areas, including TRIPS and customs
valuation, and was in the process of drafting or revising legislation in other areas. The
procedure for setting standards was also explained.
With regard to export allowances,
involving a tax credit based on certain export earnings, the representative of Trinidad
and Tobago said that, in accordance with the Budget Speech of 1998, they would be
eliminated in 2002. Trinidad and Tobago was addressing the problem of enforcement of
intellectual property rights, particularly regarding video and audio cassette piracy. The
representative of Trinidad and Tobago stressed the need for technical assistance to
strengthen the capacity of small trading partners to meet reporting obligations under the
WTO and to fully exercise their rights.
Sectoral policies
Members acknowledged Trinidad
and Tobago's efforts to diversify its economy, reducing its dependency on the energy
sector by facilitating activity in non-petroleum manufacturing and services. On
agriculture, Members posed questions with regard to issues such as: high import
surcharges, quantitative restrictions applied to imports of live poultry, and the role of
state-owned enterprises in the sector. Regarding the energy sector, Trinidad and Tobago
was encouraged to implement a more transparent pricing structure for natural gas. On
services, Members welcomed Trinidad and Tobago's commitments in the GATS and encouraged a
broadening of their scope, particularly in financial services. A number of questions were
raised on specific issues, including "exclusive rights" provisions in
telecommunications; banking sector regulations and licensing requirements; transparency in
the work permits regime; and licensing and cargo handling in both maritime and airline
services.
The representative of Trinidad and
Tobago stated that the high surcharges applied to the agricultural sector would be
reviewed before 2004 with a view to ensuring compliance with WTO commitments. Regarding
maritime transport services, the Government was considering a proposal for the
restructuring of port operations. On financial services, national treatment was accorded
to foreign providers, and the Government was finalizing an offer on banking to be
presented by January 1999. The Government was pursuing the matter of exclusive rights on
basic telecommunication services with the provider, with a view to advancing
liberalization in this sector. Amendments were being made to the Telecommunications Act;
these were expected to be approved by June 1999, allowing Trinidad and Tobago to meet its
GATS obligations. Detailed answers were also provided regarding civil aviation and the
issuance of work permits.
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Conclusions Back to top
In conclusion, Members expressed
appreciation for Trinidad and Tobago's liberalization efforts, and prompt compliance with
their obligations under the WTO. Members strongly welcomed the many steps that Trinidad
and Tobago had already taken in becoming a more open and outward-oriented economy that was
integrated into the multilateral system; they acknowledged the challenges faced by
Trinidad and Tobago as a small resource-based economy and appreciated the reform programme
to diversify the economy. It was felt that a continuation of Trinidad and Tobago's
trade-opening efforts would consolidate the basis for economic diversification and for
steady, sustainable growth; in this respect, the support of Trinidad and Tobago's trading
partners would also be important. |
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