Putting on a brave trade face

At the heart of all the efforts of the Ministry of Trade and Industry is the need to further diversify the economy of Trinidad and Tobago to reduce our dependence on oil and gas. A critical element of this is the Ministry’s creation of industry sector plans, with a view to restructuring and development. Several business development tools are being employed to bring this about.  Apart from the larger players in the business sectors, there will be opportunities for entrepreneurs as well, to obtain the institutional strengthening, support and guidance they need. The Ministry, through various business development committees, has designed special incentives and other support mechanisms to target the entrepreneur, and enhance their ability to survive in a fully liberalised economy. The following is a tailored version of an address delivered to the Small Enterprising Business Association (SEBA), by Minister of State in the Ministry of Trade and Industry, the Honourable Diane Seukeran, outlining several initiatives already in place and underway to assist entrepreneurs to ensure their competitiveness as we prepare for free trade.

“‘It is my distinct pleasure to address you at the formal launch of the Small Enterprising Business Association (SEBA) of Trinidad and Tobago seminar. I wish to compliment SEBA, the organisers of this forum for its keen foresight and timeliness in hosting this seminar, which is consistent with the Ministry of Trade and Industry’s strategy for public education on the issues arising out of the Free Trade Area of the Americas (FTAA) and Caricom Single Market and Economy (CSME). “I am well aware that the country is ripe with talk of FTAA and CSME; however, many of you are still unclear as to exactly what this means for your businesses and livelihoods. “Trinidad and Tobago’s trade policy is governed by World Trade Organisation rules, which in effect means that this country does not have the luxury of depending on long-term preferential markets and on the generosity of our old colonial masters.  Additionally, we are called upon to provide reciprocal open access to our markets.

“These global developments have changed the mode and climate in which we operate and have therefore, challenged both Government and businesses to respond by adjusting policies, measures and practices. This will necessitate change at both the macro and individual level. It is this recognition that is the catalyst for our initiative to create a Caricom Single Market and Economy by the year 2005 and to engage at the hemispheric level in the FTAA negotiations. “Government is cognizant of the role small and micro enterprises play in the growth and sustainable development of our economy and has therefore put in place several initiatives to develop and support vulnerable sectors as we prepare for the advent of the CSME and the FTAA. “On the national level these initiatives include:  NEDCO, which has been charged with the responsibility of promoting entrepreneurial awareness, disseminating information to the small and micro business sector, training, mentoring and providing funding for start up and expansion of small and micro businesses.

“The Business Development Company (BDC) whose focus is to grow small businesses by providing business support services, financing and information. “The EXIMBANK, which provides businesses whether big or small with access to the export markets by providing export credit insurance, pre- and post-shipment financing and advice and information. “Some additional initiatives include: the SBDC Leasing Company Limited, which provides lease financing to small businesses for the acquisition of machinery and equipment. This type of financing eliminates the need for significant down payment or upfront cash for the purchase of machinery and equipment and also enables enterprises to combat the effects of obsolescence. “The Venture Capital incentive programme, the legislation for which was recently amended to liberalise and make it easier for Venture Capital Companies to be established and to invest in a wider range of business sectors. “Micro Credit: Government has initiated a number of micro credit institutions in various regions of the country in an effort to provide micro financing to deserving entrepreneurs. The example of HOPE, which is a micro credit institution in the Valencia area, is a model that other communities and NGOs can seek to emulate.

“In addition to these initiatives the Government is committed to providing the best possible environment in which the growth of these businesses can be nurtured and sustained. “One of the basic principles underlying our negotiating positions in the FTAA is to advance the case for Special and Differential (S&D) treatment for the small economies of Caricom. “This simply means that because of our small size there is a need for a phased approach to full reciprocity, so that the adjustments that we might have to make in our economy may not be at the same or exact pace as the more developed economies. “The strategy adopted by Trinidad and Tobago and our Caricom negotiators is to negotiate for longer transitional periods and technical support for both the negotiation and implementation of the agreement. “The implication of this is that Trinidad and Tobago will not be faced with the full onslaught of competition in 2005 but rather we would have some period, probably up to ten years, when our markets will still be restricted and imports from other FTAA countries will still be subject to import duties.  This will provide our businesses with some measure of protection over the short to medium term.

“It is expected that during this period our enterprises will seek to restructure themselves, reengineer their operations, retrain their staff and develop world-class enterprises and products, which are capable of surviving, and more so exploiting the opportunities created by this new trading environment. “It should be clear that the Government of Trinidad and Tobago is fully behind the process of hemispheric and regional integration in which our markets are liberalised. However, the Government is committed to provide the support necessary to help our firms match and surpass the competition that will come our way. I am confident that our small businesses will rise to the challenges through improved competitiveness as they seek to shape and not merely adapt to the future. “I believe that if Trinidad and Tobago is to seize the opportunities that are offered to it, the need to build stronger domestic consensus remains critical. “The reality is that Trinidad and Tobago entrepreneurs cannot close up shop, because free trade is part of the whole concept of globalisation.  IT is going to happen, and we have to be prepared to ensure success. We have to look for the niche where we can have advantages.  We need to exploit those advantages by protecting against the downside, and that’s what the Ministry of Trade and Industry is doing right now.”

This article is part of the public education by the Ministry of Trade and Industry. For further information please contact Dianne Ligoure, Communications Specialist, the Ministry of Trade and Industry at dligoure@tradeind.gov.tt or 868. 623.2931-4 ext 2028. Fax 868.627.0002