“Trinidad and Tobago and the United of States of America have long enjoyed excellent diplomatic relations and over time have become strong trading partners, building a relationship on a platform of mutual respect and a shared vision for the sustainable development of our nations and our peoples,” says Prime Minister of Trinidad and Tobago (T&T) Kamla Persad-Bissessar.
In the area of trade and investment, the US has been an indispensable partner, particularly in the energy sector. There are a number of American oil companies operating in T&T, such as Chevron and ExxonMobil. “The US continues to be the single largest source of foreign investment, and T&T’s energy sector has benefitted from most from this investment,” says Ms Persad-Bissessar.
On the other hand, T&T has been an indispensable partner for the US: 19% of T&T’s liquefied natural gas (LNG) exports are destined for US shores. In fact, during the 2011-2012 period, the Caribbean nation provided 50% of the United States’ LNG imports, which shows just how much the United States relies on T&T for its gas needs.
The US’ demand for imported gas is set to decrease however with the discovery of domestic shale gas reserves. This means T&T will have to beef up other exports to the US as it will no longer be able to depend so heavily on US demand for its LNG. Outside of gas, T&T also currently exports food and beverages, fish, cut flowers, confectionary, and rum (major US imports include chemical products, manufactured goods and machinery and parts). “The U.S. has remained the leading market for exports from Trinidad and Tobago and it is hoped that this relationship will continue to strengthen over the years,” says the prime minister.
| "There are immeasurable opportunities for continued investment that can mutually benefit both countries” |
In May 2013, the governments of T&T and the US signed a memorandum of understanding (MOU) for Cooperation on a renewable energy. This MOU will facilitate the provision of technical support for the development of a Renewable Energy Centre at the University of the West Indies.
The prime minister is hoping to see further cooperation in the field of alternative energy with the U.S., as well as in the development of ICTs and in security. “There is a need for further cooperation in the areas of maritime and border security, illicit trafficking and deportees,” she says.
Outside of energy, there are several US companies operating in the banking, aviation, energy and manufacturing industries, all of which are represented by the American Chamber of Commerce and Industry in Trinidad and Tobago. T&T also has a number of US-based retail food franchises. Some big names that have invested in T&T include Colgate Palmolive, Coca-Cola, and Johnson and Johnson.
During the interview with Untied World, the Prime Minister Persad-Bissessar was eager to take the opportunity to highlight opportunities for prospective US investors in non-energy industries. “There are immeasurable opportunities for continued investment that can mutually benefit both countries,” she says. These include financial services, tourism, ICT, manufacturing, the creative arts (such as film, fashion and animation), and agribusiness.
She explains that close attention is being paid in particular to the agri-business sector. “An Agricultural Incentive Programme has been designed to boost overall efficiency and production in the sector.”
What may be of particular interest to US investors is T&T’s cocoa industry. “We have been blessed with some of the finest cocoa and we are currently participating in a project which aims to provide new varieties with disease resistance and improved yielding capacity, thereby resulting in increased exports,” she adds.
“The new approach features attracting investment into the non-energy sector through the creation of an enabling environment that is transparent, predictable and hospitable to existing and potential investors.”
Potential investors first port of call when considering investment in T&T will most likely be the investment promotion agency, invest TT – which operates as a national one-stop shop for all investors – and the innovative TTBizLink.
“TTBizLink is a single electronic window; an IT platform which provides a range of government business services online,” explains the Prime Minister, adding that the implementation of TTBizLink and other government portals will lead to a reduction in the time and cost involved in doing business locally.
“Investment incentives are also being coordinated through various government ministries. The range of investment incentives for foreign investors includes fiscal incentives, import duty concessions, free-zone status and other sector specific incentives geared towards the development of prioritized industrial areas.
“The country’s strong macroeconomic fundamentals and its friendly and attractive investment climate coupled with the government’s commitment to build capacity and improve the effectiveness of its governance systems suggest that investors can continue to enjoy adequate returns for commensurate risks.”
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