Manning reveals massive foreign investment in TT

PRIME MINISTER Patrick Manning revealed there has been a steady increase in foreign direct investment into Trinidad and Tobago, which reached an all-time high of US$737 million in 2002. He hinted this was due to sound financial strategies left in place by his first administration (1991 to 1995). Addressing the opening of the fourth annual Euromoney/Latin Finance Caribbean Investment Forum at the Hilton Trinidad yesterday, the Prime Minister said between 1999 and 2001, TT accounted for 40 to 45 percent of some US$700 million which flowed into the region. “The inflow of foreign direct investment into TT has grown significantly since 1995.

“From an annual average of 38 percent of gross fixed capital formation between 1991 and 1996, the annual average inflows increased to 52 percent between 1997 and 1999. Total inflows more than doubled from an average of US$317 million during 1991 and 1996 to US$737 million in 2002,” Manning declared. Explaining that TT fully understood the significance of encouraging investment flows into the region, Manning said this was why “moves are afoot to achieve a harmonised investment policy among the member states of Caricom.” “This is in keeping with the objective of the Caricom Single Market and Economy, which involves the creation of a single economic space to which TT is fully committed. TT is fully committed to Caricom and Caribbean integration.

We are committed to the achievement of a greater measure of economic independence and effectiveness of Caricom member states. After the experience of our region over centuries, we are convinced that it should pursue no other imperative with greater determination than that of our integration and collective development,” he declared. The Prime Minister said it was for this reason that TT was trying to establish itself as a pan-Caribbean financial hub and centre “capable of providing the broad spectrum of financial instruments and services needed in the region.” He added that TT was currently the largest contributor to the Regional Stabilisation Fund and is working towards developing the regional capital market.

On the latter, Manning disclosed that TT was contributing up to US$500 million annually in the form of placement and a further US$250 million via more direct financial involvement. Stating that Government’s commitment to the creation of a business-friendly environment makes TT an important player in World Trade Organisation, African Caribbean Pacific-European Union negotiations and the Free Trade Area of the Americas (FTAA), Manning said TT “firmly believes that our many inherent advantages make us the natural home of the (FTAA) Secretariat.”