Rowley: TT signs trade pact with IDB

THE TRINIDAD and Tobago Government has entered into a Trade Sector Support Programme with the Inter-American Development Bank (IDB) to improve existing trade relationships and forge new ones with hemispheric partners. According to Planning Minister Dr Keith Rowley, this move is a major component in the achievement of government’s Vision 2020.

Rowley, who addressed a meeting of the British Chamber of Commerce at the Hilton Hotel yesterday revealed that the programme, agreement for which was signed on May 21 for a loan of US $5 million, will pave the way for formulation and implementation of trade policy and agreements, facilitation of effective participation at trade negotiations and a diversification and increase in exports. “Global trends dictate the necessity to combine forces within geographic spheres of influence, thereby giving rise to the establishment of common markets and economic unions,” he said. Rowley said it was in this regard that negotiations were ongoing for the Free Trade Area of the Americas (FTAA) and the Caribbean Single Market and Economy (CSME). “By 2020 Trinidad and Tobago is envisioned as a fully developed nation in every sense.”

This included the strength of the economy, the development of financial markets, the level of human development as well as the standard of living of the population. The Minister said a Cabinet-appointed multi sectoral group had been established to spearhead formulation of a Strategic Development Plan which would serve as “a road map on the developmental path.” The group, under the chairmanship of Arthur Lok Jack, comprises individuals from Government, the private and non-governmental sectors. as well as representatives from UNDP and IDB. Additionally, the group is being supported by a Technical Secretariat comprising staff from the Planning and Social Development Ministries. Rowley said the Secretariat has already undertaken research on over 15 countries which have pursued successful initiatives that have led to rapid increases in their growth and development in the social and economic sectors. An analysis has also been made of similar indicators for Trinidad and Tobago, he said.

This research showed that among these 15 countries, six registered growth rates above 20 percent between 1997 and 2001. They are Ireland which recorded 29 percent, Fiji 28 percent, Costa Rica 26 percent and Bahrain 25 percent. By comparison, he stated, Trinidad and Tobago registered 24 percent. However, this came after an extended period of negative growth between 1983 and 1993. The study further revealed that, with the exception of Bahrain and Trinidad and Tobago, which concentrated mainly on energy exports, all the other countries exhibited a diversified export structure. “The government of Trinidad and Tobago aims to shift this uncomfortable dependence on energy exports by fostering and developing a non-energy manufacturing and service sector,” Rowley said.