TRINIDAD & TOBAGO ECONOMIC HIGHLIGHTS - MARCH

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USDOC FOR ITA/MAC/OFFICE OF LATIN AMERICA & CARIBBEAN
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E.O. 12958: N/A
TAGS: ECON EAIR EFIN EIND EINV ETRD KFLU TD
SUBJECT: TRINIDAD & TOBAGO ECONOMIC HIGHLIGHTS - MARCH


The following were notable economic developments in Trinidad &
Tobago during the month of March


1. Tobago Land License for Foreigners

2. Far East Co-operation in Trade & Investment

3. GOTT committed to FTAA

4. Fishy concerns

5. T&T gets Water Pollution Rules

6. U.S. company to build Caustic Soda plant

7. Essar Steel plant approved

8. T&T Bird Flu ready

9. VAT removed on basic products

10. Inflation falls again

11. Caribbean Airlines launches POS/London Route

12. Aviation security training for Caricom

13. Fire delays Guyana's poultry exports to T&T

14. T&T Company's Registry Online


1. Tobago Land License for Foreigners
--------------

According to the Foreign Investment Tobago Land Acquisition Order
2007 (FITLAO) signed on February 14, all foreign investors must now
obtain a license before purchasing land in Tobago. Orville London,
Chief Secretary of the Tobago House of Assembly, said that the
FITLAO minimizes the chances of land being purchased in Tobago 'for
reasons other than those that were stated and approved.' He added
that the idea was not to ban the sale of lands, but to be able to
manage it in an effective way. Previously, foreigners could
purchase up to five acres for business purposes and one acre for
residential purposes without a license.


2. Cooperation with Asia in Trade & Investment
-------------- -

The February 27-March 12 GOTT "Trade and Investment Mission to the
Far East" (Seoul, Beijing, Shanghai, Mumbai, New Delhi) produced the
following results: The GOTT and ROKG agreed to cooperate in trade of
liquefied natural gas from T&T and Korean inputs for T&T
manufacturing. The highlight of the Beijing visit was the signing
of a Memorandum of Understanding (MOU) by Minister of Trade and
Industry Kenneth Valley and Mr. Gu Zhaoxi, Vice Chairman of the
China National Tourism Administration (NTA),under which China
granted Approved Destination Status (ADS) to T&T, facilitating PRC
nationals' travel to T&T. Also in Beijing, the Mission hosted a
Business Forum attended by over 200 Chinese business
representatives.

In New Delhi GOTT and GOI signed a bilateral investment treaty.
Minister Valley also presented Bank of Baroda's Chairman and
Managing Director Dr. Anil K. Khandelwal with a letter of approval
from the Central Bank of Trinidad and Tobago to open a T&T
subsidiary. The general Manager of New India Assurance, the longest
operating Indian company in T&T, spoke at a business forum about his
59 years of experience doing business in T&T. Arrangements were
finalized with a major Bollywood studio to shoot a feature film here
in May 2007 for release in India in September 2007.

The GOTT also announced plans to negotiate bilateral civair
agreements with China and India this year.


3. GOTT committed to FTAA
--------------

Speaking at a March 21 luncheon for energy executives, Prime
Minister Manning told his audience that he had made it clear to
Venezuela's President Hugo Chavez that T&T remains "irrevocably
committed" to the Free Trade Area of the Americas (FTAA). For that
reason, Manning stated T&T could not subscribe to the Bolivarian
Alternative for the Americas (ALBA),like Venezuela, or sign MOUs on
ALBA, like some CARICOM neighbors. Manning added that since
Venezuela, through PetroCaribe, threatened to displace T&T as the
dominant regional energy supplier, T&T could no longer accept the
responsibility for guaranteeing energy security in CARICOM
countries.


4. Fishy Concerns
--------------

Recent statistics from the Tobago House of Assembly (THA) Department
of Fisheries indicate depleted flying fish stocks in Tobago's
waters. The report states that the 2004-2005 season was the worst in
years and despite a relatively better 2005-2006 season, it failed to
reach the average for the previous five years. THA's Chief
Secretary Orville London said conservation would be necessary if the

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present trend continues, and the Assembly is recommending a
moratorium on fishing in Tobago waters by foreign vessels until a

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new assessment shows that there is no permanent depletion of fish
stock and that the available and predictable stock can meet the
needs of Tobagonians. The Assembly's position has been conveyed to
the Ministry of Foreign Affairs as discussions between T&T and
Barbados on fishing in Tobago waters are scheduled to commence
shortly.


5. TT gets Water Pollution Rules
--------------

In early March, Public Utilities and the Environment Minister
Penelope Beckles introduced new Water Pollutions Rules, which
require corporations and other "polluters" to register as a source
of water pollution with the Environmental Management Agency (EMA) by
May 4. This represents T&T's first attempt to compile a
comprehensive and reliable inventory of national water pollution
sources and is intended to improve the quality of T&T's water
resources. Septel will report further on these rules and planned
implementation and enforcement.


6. U.S. company to build Caustic Soda plant
--------------

U.S. company Seneca Chemicals Limited and local joint venture
partner Guardian Energy Holdings Limited will build a US$80 million
chemical plant at Point Lisas with an annually production capacity
of 100,000 tones each of caustic soda and calcium chloride when the
facility comes on stream in September 2008. The joint venture
company CariSal Limited, affiliated with New York company CariSal
LLC, will process a by-product salt stream from the Desalcott
desalination plant to make a raw feed to the plant and produce
potable water for its own use as well as local industrial use.
According to press reports, CariSal has secured long-term supply
agreements for electricity and natural gas to the facility.
Texas-base DX Terminals Limited will market the caustic soda
internationally, while CariSal LLC will market the calcium chloride
for oilfield, road stabilization and ice melt applications.
According to General Manager Roger Moore, the company is committed
to providing a safe and clean operation with no emissions.
Miami-based Conve & AVS Inc. and local company ABT Engineers &
Constructors Ltd. were awarded the contract for engineering and
fabrication of the plant. Local company TTeK Project Management
Limited will be responsible for the construction of the facility.
U.S. company Halliburton, a major consumer of calcium chloride for
oilfield operations, reportedly also has an interest in the
project.


7. Essar Steel plant approved
--------------

Essar Steel officials announced the company has received a nod from
the GOTT for its proposed US$1.76 billion plant in Trinidad and will
start construction by July this year. The plant would have an
annual production capacity of 2.5 million tons and would be
operational by 2010. Essar is setting up the new plant produced
primarily for the US market and also for the Caribbean. This would
be Essar's first plant in the Caribbean but the company may look for
more such plants in the future, according to press reports.


9. T&T Bird Flu Ready
--------------

At the first interagency Avian Influenza Desktop Simulation held
March 14, T&T Minister of Agriculture Jarrette Narine declared that
T&T was "well prepared" in the event of AI reaching this country,
which he says is not a matter of "if Bird Flu would strike T&T but
rather when." Since chicken is a vital part of the Trinbagonian
diet, Narine is focusing on AI's possible impact on the poultry
industry. He also reported that his Ministry has strengthened
surveillance of the country's ports of entry and amended trade
protocols and restrictions to address the AI threat. Nearly 100
representatives from the National Avian Influenza Control Committee
(NAICC),an interagency task force formed in November 2006, and
other industry and NGO stakeholders took part in the exercise to
increase preparedness and coordination of key players


9. VAT removed on basic products
--------------

On March 14, advertisements from the Board of Inland Revenue
appeared in local newspapers advising that the 15 per cent Value
Added Tax (VAT) had been removed on a number of items effective
January 31, although many stakeholders said that they were unaware
of this change until the publishing of the ads. Among the items on
which VAT was removed are mineral and ordinary water, tomato
ketchup, prepared mustard, aerated beverages, corn flakes, soya
bean, corn and sesame oils, chicken sausages, canned salami

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sausages, unsweetened grapefruit juice for infant use and
concentrated, orange drink, soy sauce, vinegar, dishwashing liquid
and detergents, both liquid and solid forms.


10. Inflation falls again
--------------

In its March release, the Central Bank of Trinidad and Tobago
announced that headline inflation dropped to 8.4 percent in
February, down from 8.6 percent in January. According to the Bank,
while the outlook for prices over the next three months remains
uncertain, the full impact of the reduction of VAT could reduce the
prices of some consumer goods. Core inflation was up to 4.5 percent
from 4.4 percent in January and occurred mainly in the sub-indices
of housing and alcoholic beverages, the latter being attributed to
the carnival season.


11. Caribbean Airlines launches POS/London Route
-------------- --------------

Caribbean Airlines (CA) launched its new and enhanced flight service
between Port of Spain and London on March 25. The new service is
part of a code share agreement signed between CA and British Airways
(BA). Under this agreement BA operate direct flight service between
POS and London, three times weekly. On the other days, CA will fly
from POS to Bridgetown connecting with BA's Boeing 777 to London.


12. Aviation Security Training for CARICOM
--------------

As part of CARICOM measures to enhance border and venue security
ahead of the Cricket World Cup, the newly established Advanced Air
Transportation Technologies-Airports Council International
(AATT-ACI) Global Training Hub at the Aviation Training Centre in
Piarco International Airport recently graduated 33 participants from
its inaugural training program. Instructors from ACI focused on
passenger profiling, managing airport and stadium security during
the World Cup and how to manage and maintain seamless security.
Officials from the U.S. Department of Homeland Security and the U
.S. Transportation Security Administration attended parts of the
seminar. The next training program is scheduled for May 29-31 and
will focus on "Generating Non-Aeronautical Revenue."


13. Fire delays Guyana's poultry exports to T&T
-------------- ---

T&T technical team's visit to conduct final inspection on possible
poultry suppliers to T&T was postponed to the end of April due to a
fire at one of the poultry farms. However, in its continued efforts
to seek lower prices of chicken and other products, the GOTT also
approached Mexico and Colombia and expressed interest in importing
agricultural produce and poultry in particular. Also being explored
is the possibility of importing beef, fruits and vegetables from
Costa Rica and Guyana, taking into account sanitation and health
risks. Agriculture Minister Jarrette Narine said that government
was exploring all options in an effort to reduce food prices.


14. T&T Company's Registry Online
--------------

To improve Trinidad and Tobago's "investor ready atmosphere" the
Companies Registry of the Registrar General's Department will soon
be available online. The Minister of Legal Affairs Christine
Kangaloo said the initiative would be a subscription service with a
minimum subscription fee of TT$2,000 (US$317). Upon advance payment
to the Registrar General's Department, a user name and password
would be assigned and a TT$20 (US$3.70) fee deducted from the
subscription amount for each search. The facility has information
on 54,000 business names and 30,000 companies on record.

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