TIC FOLLOW UP - TRINIDAD & TOBAGO

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SIPDIS

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: ECON ETRD EINV TD
SUBJECT: TIC FOLLOW UP - TRINIDAD & TOBAGO

REF: 06 STATE 201767

SENSITIVE BUT UNCLASSIFIED - HANDLE ACCORDINGLY


1. (SBU) SUMMARY: GOTT trade officials were disappointed that the
October meeting of the US-CARICOM Trade and Investment Council
meeting did not address future access to the U.S. market for CARICOM
goods, but they welcomed USG interest in following up the October
meeting. They reacted coolly to the idea of continuing discussions
by videoconference, strongly preferring another face-to-face
meeting. Post believes that GOTT trade officials are willing to be
convinced that the TIC process will bring them closer to their
market access goals. If convinced, T&T should be an ally in
advancing substantive discussions under the TIC, provided the
process respects CARICOM solidarity. END SUMMARY.


2. (SBU) Per reftel instructions, Economic Section Chief discussed
USG thinking on next steps for the U.S.-CARICOM Trade and Investment
Council (TIC) with contacts at the Ministry of Trade and Industry
and leading business organizations.


3. (SBU) In a January 17 meeting, Ministry of Trade and Industry
Permanent Secretary Edwina Leacock welcomed the message that the USG
seeks to follow up the October TIC meeting, adding that the readout
she had received after that meeting left her in doubt as to whether
the U.S. was serious about advancing its trade and investment
relationship with CARICOM. Ministry staffer Neville Alexander, who
attended the October TIC meeting, explained that CARICOM had gone
into the meeting hoping to hear about USG thinking on the future of
the Caribbean Basin Initiative or successor arrangements to secure
access to the U.S. market for CARICOM exports. The U.S. message,
that market access for goods was "off the table" pending renewal of
the President's Trade Promotion Authority (TPA),had come as a
disappointment, he said.


4. (SBU) Econ Chief pointed out that CARICOM members had identified
many issues other than goods for which there is ample scope for
substantive discussion, and he underscored USG desire to use the TIC
process to support implementation of the Caribbean Single Market and
Economy (CSME). Leacock responded that T&T certainly was interested
in pursuing in-depth discussions in these areas, and she undertook
to begin identifying T&T's interests and priorities, admitting that
the Ministry had given little thought to this since the October TIC
meeting.


5. (SBU) On the proposal to continue discussions via digital video
conference (DVC),Alexander said that the Ministry could contract
for DVC services as needed, but Leacock clearly signaled a
preference for face-to-face meetings. While viewing DVCs as an
acceptable fallback, for example to permit participation by
individual CARICOM members whose experts were unable to travel,
Leacock thought CARICOM's ability to speak as a unit would be
undermined by the DVC format, since CARICOM members would have a
difficult time coordinating positions before and during discussions
with the U.S. On the idea of holding discussions in small groups,
Leacock offered no verbal reaction but her body language was equally
tepid.


6. (SBU) Econ Chief stressed that DVCs would provide an efficient
channel for expert-level discussions, allowing several rounds to be
held before the Conference on the Caribbean planned for June. While
Leacock responded favorably to the idea of using the Conference on
the Caribbean as an opportunity to draw attention to progress in
implementing the CSME and in advancing TIC discussions, she
reiterated her preference for a face-to-face meeting sometime before
the Cricket World Cup gets underway in early March.


7. (SBU) In a separate conversation, Larry Placide, who represents
the Trinidad & Tobago Chamber of Industry and Commerce in the
Caribbean Regional Negotiating Machinery, echoed concerns that
CARICOM would have difficulty continuing discussions via DVC.
Placide recognized the advantages of holding in-depth discussions
with sub-groups of CARICOM members, but he also flagged the risk of
fueling intra-CARICOM suspicions, particularly if smaller economies
were excluded from discussions between the U.S. and larger CARICOM
members.


8. (SBU) COMMENT: Maintaining or improving access to the U.S.
market after elements of the Caribbean Basin Initiative expire in
2008 is the GOTT's top trade policy goal with the U.S. Judging from
PS Leacock's response to our message, GOTT trade officials are not
sure that the TIC will move them any closer to that goal but are
willing to be convinced. If convinced, T&T should be an ally on
substance. T&T is committed to an open investment environment, it
is already cooperating with us on IPR by hosting the first
USPTO-CARICOM seminar, and it has much to gain from CSME
implementation in view of its role as a center for manufacturing and
services and a source of investment within the region.
Nevertheless, as evidenced by PS Leacock's cool response to the DVC
proposal, the GOTT puts a high premium on maintaining CARICOM
consensus, conscious that smaller CARICOM members may suspect T&T's

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motives when it comes to dealing with the U.S. END COMMENT.

AUSTIN