Identifier
Created
Classification
Origin
07PORTOFSPAIN718
2007-07-20 15:11:00
UNCLASSIFIED
Embassy Port Of Spain
Cable title:  

TRINIDAD & TOBAGO ECONOMIC HIGHLIGHTS - MAY

Tags:  EAID ECON ECPS EINV ETRD SENV TD EAGR 
pdf how-to read a cable
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RUEHDG/AMEMBASSY SANTO DOMINGO 2586
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UNCLAS SECTION 01 OF 02 PORT OF SPAIN 000718 

SIPDIS

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SANTO DOMINGO FOR REGIONAL COMMERCIAL OFFICE

E.O. 12958: N/A
TAGS: EARG EAID ECON ECPS EINV ETRD SENV TD
SUBJECT: TRINIDAD & TOBAGO ECONOMIC HIGHLIGHTS - MAY


The following were notable economic issues in Trinidad & Tobago
during the month of June.

UNCLAS SECTION 01 OF 02 PORT OF SPAIN 000718

SIPDIS

SIPDIS

SANTO DOMINGO FOR REGIONAL COMMERCIAL OFFICE

E.O. 12958: N/A
TAGS: EARG EAID ECON ECPS EINV ETRD SENV TD
SUBJECT: TRINIDAD & TOBAGO ECONOMIC HIGHLIGHTS - MAY


The following were notable economic issues in Trinidad & Tobago
during the month of June.


1. GOTT-PCS Nitrogen Partner on Model Farm

2. Cuban farmers to help set up farms

3. US$8M for Trinidad disaster preparedness

4. Inflation continues to decline

5. TSTT, Flow sign interconnect agreement

6. India invests in T&T

7. Non-energy investors hard to find

8. T&T opens trade office in Cuba

9. Work permit amendments go to Parliament

10. Climate Change MOA signed


1. GOTT-PCS Nitrogen Partner on Model Farm
--------------

Trade and Industry Minister and Chairman of the Prices Committee
Kenneth Valley announced that the GOTT is partnering with fertilizer
company PSC Nitrogen Trinidad Ltd. to establish a 50-acre model farm
and agricultural resource centre in an effort to reduce the
country's rising food bill. According to Valley, the project will
provide the local farming community free access to state-of-the-art
farming training facilities, technical assistance and technology not
currently available in T&T. The Minister also advised that the GOTT
is moving towards establishing a "state-of-the-art refinery" where
raw sugar imports would be refined in T&T.


2. Cuban farmers to help set up farms
--------------

Agriculture Minister Jarrett Narine announced that a Cuban
government delegation will visit T&T to help get two of ten proposed
100-acre farms off the ground. Prior to their arrival, a T&T
delegation plans to visit Cuba to determine the appropriate type of
farm for Trinidad. Meanwhile, the Rural Urban Development Company
of T&T (Rudecott) issued requests for proposals to interested local,
regional and international entities to run the other eight farms
intended to help curb food price inflation and increase domestic
food production.


3. US$8M for Trinidad disaster preparedness
--------------

The GOTT National Security Minister Martin Joseph announced that the

Office of Disaster Preparedness and Management (ODPM) was allocated
US$8 million to prepare for the upcoming hurricane season. He added
that GOTT was working on a National Disaster Management Policy and
also plans to develop an early public warning system for natural
disasters. ODPM CEO Paul Saunders said that his organization has
begun an aggressive public education campaign on disaster
preparedness, which proposed disaster management studies in the
secondary school curriculum would supplement. The GOTT also
recently established an Inter Ministerial team to ensure ODPM
delivers on its mandate.


4. Inflation continues to decline
--------------

The latest Central Bank (CBTT) release indicates that headline
inflation continued its downward trend in May to 7.9 percent down
from 8.4 percent in April. Food price inflation, the main stimulus
to headline inflation, slowed to 17.3 percent in May 2007 from 18.9
percent in April. Despite strong increases in the prices of fruit
and fish, reduced meat and vegetable prices brought overall food
price inflation down. Declines in the price of clothing, footwear,
alcoholic beverages and tobacco resulted in a slight decrease in
core inflation from 4.7 percent in April to 4.5 percent in May.
Over the next months, increased grain prices on the international
markets and the advent of floods in the local rainy season will pose
new inflation control challenges for the CBTT. The "Repo" rate was
maintained at 8.00 percent.


5. TSTT, Flow sign interconnect agreement
--------------
Local telecom provider Telecommunications Services of Trinidad and
Tobago (TSTT) and Columbus Communications (Trinidad) Ltd., operator
of cable TV provider Flow, concluded an interconnection agreement to
link both companies' networks, enabling their respective customers
to communicate with each other. According to the agreement, the
same rate would apply for calls between both networks. The mobile
termination rates in this agreement fall within the price range set
by the arbitration panel established by the Telecommunication
authority of T&T (TATT).


6. India invests in T&T
--------------
India's Bank of Baroda will open its first branch in Trinidad and

PORT OF SP 00000718 002 OF 002


Tobago in July 2007 with investment capital of US$8 million.
According to India's Minister of Overseas Indian Affairs Vayalar
Ravi during a recent visit to T&T, Bank of Baroda (Trinidad and
Tobago) Ltd. is just one example of Indian enterprises investing in
T&T. Ravi highlighted another company, Essar, which is expected to
begin constructing a US$1.76 billion steel plant with an annual
production capacity of 2.5 million tones later this year. Ravi
added that there are opportunities in India for T&T businesses. T&T
and India signed a bilateral investment protection and promotion
agreement in March of this year during GOTT's Far East trade
mission.


7. Non-energy investors hard to find
--------------

Professor Ken Julien, Chairman of Evolving Tecknologies and
Enterprises Development Company (E-Teck) lamented at a recent E-Teck
seminar that T&T was struggling to attract investment in the
non-energy sectors, such as high-value manufacturing, services and
knowledge-based industries, which are necessary to diversify the
economy away from the energy sector. He said attracting investment
was difficult because the non-energy sector does not have "the
carrot" to attract investors like the energy sector does. He also
blames international coverage of crime and security for deterring
investment, as well as "deep-seated culture" by some State
Enterprises and private sector companies for hindering the
development of the non-energy sector. Julien proposed the creation
of a "one-stop shop" for information about the country and its
investment opportunities.


8. T&T opens trade office in Cuba
--------------

The GOTT Trade and Industry Minister Kenneth Valley introduced the
new T&T Trade Facilitation Office in Cuba that will help build
heavier, more consistent trade between Cuba and T&T. The office is
expected to begin operations on August 1, with an official launch in
November. Trade between Caricom and Cuba is currently valued at
US$68 million. According to Valley, this is the latest "part of the
jigsaw" for developing regional and Latin America trade ties. He
and Ambassador Plenipotentiary Jerry Narace hope for further trade
agreements with Central and South America, which Valley termed
"acres of diamonds in our backyard," to offset the harsh effects of
globalization and liberalization. There is also a proposal for an
exchange student program between Latin America and T&T.


9. Work permit amendments go to Parliament
--------------

Cabinet recently approved amendments to the Immigration Act
regulations making it easier for foreign workers to work in T&T.
National Security Minister Martin Joseph said labor shortages in
construction and other areas necessitate this regulation change and
that these changes represent GOTT's efforts to improve all systems
to developed country status by the year 2020. The proposed
amendments aim "to simplify the processing and issuance of visas and
work permits to non-nationals." The amendments are to be laid
before the Parliament "at the earliest possible opportunity" and
will provide for the following: electronic work permit applications
through the egovernment portal; group work permit applications;
multiple entry visas; fee increases from US$8 to US$63 for visa
waivers to foreign nationals without visas entering T&T; and visa
issuances by immigration officers to work permits holders upon
arrival at a T&T port of entry. According to Joseph, although the
Ministry would accept group work permit applications, each person
will have to pass the customary security checks to receive
individual permits.


10. Climate Change MOA signed
--------------

The University of the West Indies (UWI),St. Augustine Campus and
the Caribbean Community Climate Change Centre (CCCCC) recently
signed a Memorandum of Agreement (MOA) to engage in joint research,
education and training on climate change. According to the UWI
release, the MOA's research and education opportunities will
concentrate on the geo-physical and socio-economic effects of
climate change on tropical agriculture, biological diversity, sea
levels and coastal erosion.

SWEENEY