Trinidad and Tobago has privileged access to all major markets. As a participant in the Caribbean Basin Initiative (CBI), CARIBCAN, and Lome agreements, products enter under preferential schemes into the U.S., Canada, and European Union Countries.

Trinidad and Tobago is a member of the Caribbean Community (CARICOM), Association of Caribbean States (ACS), Caribbean Development Bank (CDB), World Trade Organization (WTO), and is a signatory to the General Agreement on Tariffs and Trade (GATT), and to the Global System of Trade Preferences (GSTP). Currently, Trinidad and Tobago is seeking to join the North American Free Trade Agreement (NAFTA).

Bilateral trade agreements are in place with Venezuela and Colombia, under Trinidad and Tobago's CARICOM membership. During 1997, Trinidad & Tobago signed a trade agreement with the Dominican Republic. In 1998, negotiations began with Panama and Costa Rica for bilateral trade agreements.

Notwithstanding its interest in moving the country towards NAFTA accession, the Government remains committed to regional integration efforts, and works closely with CARICOM and the ACS. Trinidad and Tobago has been given the mandate by CARICOM to lead efforts in the sub region's moves towards enhanced trade relations with South America.

The country is a member of the Organization of American States (OAS) and United Nations (UN), and of international financing institutions such as the World Bank, International Monetary Fund, and Inter-American Development Bank.

The Free Zones Act 1988 and Free Zones (Amendment) Act 1995 promote export development and foreign investment projects in a bureaucracy-free, duty-free and tax-free environment.

Incentives under the legislation provide exemption from:

• customs duty on the importation of goods into the free zone;
• income tax, corporation tax and business levy;
• withholding taxes on remittance of profits, dividends and other distributions;
• taxes on land, buildings, improvements to buildings, plant and machinery in the free zone.

The Amendment Act provides for an area to be designated a free zone and become eligible for the above incentives. Up to 20% of goods manufactured in a free zone, or imported for re-export, may be exported to the Customs Territory (anywhere in Trinidad and Tobago except a free zone) subject to applicable restrictions and dues. Free zone projects may be 100% foreign owned or joint ventures with local investors.

The Point Lisas Free Zone comprises 25 hectares, with provisions for expansion, and infrastructure includes a deep water harbor, an abundant supply of natural gas, modern communications and road facilities, etc. It is served by a teleport.

Additional free zones are planned for the new Piarco International Airport, as part of its development plan, and Frederick Estate, 8 miles from the port facilities at Port of Spain. The Trinidad and Tobago Free Zones Company is responsible for the regulation of companies in the free zones.

The Trinidad and Tobago Free Zones Company Limited: Albion Court, 2nd Floor West, 61 Dundonald Street, Port of Spain, Trinidad & Tobago. Tel: (868) 623-8363; (868) 625-4749; Fax: (868) 625-4755.

The Point Lisas Industrial Port Development Corp. (PLIPDECO): Plipdeco House, Goodrich Bay Road, Point Lisas, Couva. Tel: 636-2201; 636-4388; 636-2705.

Trinidad and Tobago has Bilateral Investment Treaties with Canada, the United Kingdom, Ireland and France; negotiations for a similar treaty with the United States were recently completed. The country qualifies for Overseas Private Investment Corporation (OPIC), Multilateral Investment Guarantee Agency (MIGA) investment funding and insurance, and US EXIM Bank programs.

Tax incentives include: Accelerated Depreciation, Double Taxation Relief, Tax Holidays, Carry over of losses incurred during the exemption period, Investment/Capital Allowance, Additional Investment Allowance, Export Allowance, Import Duty Exemptions, and Conditional reduced rates of import duty.

The Hotel Development Act provides for tax holidays of up to 10 years and duty-free concessions for hotel developments.

TIDCO administers the tax incentives and is responsible for Trinidad & Tobago's state-owned industrial estates. Most feature covered accommodation as well as land sites. Rental rates are competitive, ranging from US$1.00 to US$1.50 per sq meter per month for covered accommodation and from US$1.25 to US$1.75 per sq. feet for land sites, with the latter negotiable for larger parcels.

The Tourism and Industrial Development Company of Trinidad and Tobago Ltd. (TIDCO): P.O. Box 222, 10-14 Philipps Street, Port of Spain, Trinidad & Tobago. Tel: (868) 623-6022; Fax: (868) 625-0837.

The Chaguaramas Development Authority (CDA) administers the Chaguaramas Peninsula which, together with several offshore islands, is being developed for tourism and light industry.

CDA: Airways Road, Chaguaramas, Trinidad, W.I. Tel: (868) 634-4349, (868) 634-4229; Fax: (868) 625-2465.

Both the corporate and top tier of the Income bracket tax rate are 35%.

Personal taxes are on a graduated scale, ranging from 5% to 35%. There is a European-style Value Added Tax (VAT) of 15%, which does not apply to unprocessed foods and a number of services.

Wages vary from industry to industry, with average minimum rates established in some sectors.

Some ranges are: Construction / Building Services Sector-$1.60-$2.45; Furniture Manufacturing Sector-$0.66-$1.55; Restaurant & Hotel Sector-$0.83-$1.60; Electricity, Water & Sewage Services Sector-$2.60-$4.25; Electrical & Plumbing Services-$1.20-$2.70. In the industrial sector, labor rates range from $1.12 (unskilled) to $6.97 (skilled).

The well-developed financial system in Trinidad and Tobago comprises six Commercial Banks, Mortgage Finance Companies, Unit Trust and Mutual Funds, Trust and Pension Fund Managers, Life and General Insurance Companies, Development Finance Institutions, Credit Unions, Venture Capital Companies, other Non-Bank Financial Institutions, and the Stock Exchange, rated the fifth fastest-growing in the world in 1998.

Over forty insurance companies operate locally, the largest of which are active in other Caribbean countries as well. The industry is regulated by the Supervisor of Insurance, appointed by the Central Bank.

The commercial banks operate over 100 branches throughout the two islands, and the Deposit Insurance Corporation guarantees bank deposits (up to TT$ 50,000).

The Central Bank of Trinidad & Tobago: Eric Williams Plaza, Independence Square, P.O. Box 1250, Port-of-Spain. Tel: (868) 625-5028 ; Fax: (868) 627-4696.

Bank of Commerce of Trinidad and Tobago Limited, Tel: (868) 625 2711.

Bank of Nova Scotia Trinidad and Tobago Limited, Tel: (868) 625 3566.

Citibank (Trinidad and Tobago) Limited, Tel: (868) 625 1040.

Republic Bank Limited, Tel: (868) 625 4411.

Royal Bank of Trinidad and Tobago Limited, Tel: (868) 623 1322.

Shares are traded in 27 local companies, with market capitalization of US$1.4 billion in 1997, up 30.9% over the previous year. There is a growing secondary market in government and corporate bonds. Operations of the Stock Exchange are governed by the Securities Industries Act. In 1997, trading volume increased to 121.3 stock units, with a market value of about US$103 million.

Relative to the purchase of securities by foreign investors, the Foreign Investment Act provides that foreign investors in aggregate must obtain a license to hold thirty percent (30%) or more of the total issued shares of a public company. There are ongoing discussions by the Stock Exchanges of Barbados, Jamaica, the Bahamas, Santo Domingo and Trinidad & Tobago to combine their national stock exchanges into a regional stock market, a project being supported by the Inter-American Development Bank. Cross-border trading presently takes place between the Stock Exchanges of Barbados, Jamaica and Trinidad and Tobago.

Trinidad and Tobago Stock Exchange: 65 Independence Square, Port of Spain. Tel: (868) 625-5107/9; Fax: (868) 623-0089.

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