Policies

Investment Policy

In less than fifty (50) years of political independence, Trinidad and Tobago has successfully created an oil and gas based sector and a globally competitive petro-chemical sector. While traditionally the strategy has been to utilise the revenues generated from the energy sector to fuel the economic diversification and future development plans of the twin island republic state, the Government recognises that attracting investment, both foreign and domestic is a significant source for sustainable development.

The international literature shows that foreign direct investment has been a critical source for development in world economies. In fact, in 2007, global investment flows reached a record level of US$1.833 trillion. Of this total, developing and transition economies attracted US$600 billion, a 25% increase over 2006 inflows. The current global financial and credit crises paint a sombre picture, threatening the ability of countries to attract global investment flows. By 2009, global FDI flows declined to US900-1200 billion, though a slow recovery is expected for 2010 into 2011.

Notwithstanding, Trinidad and Tobago is in a relatively favourable position to deal with the challenges posed by these crises. This country’s strong macroeconomic fundamentals, its friendly and attractive investment climate, the vast array of investment opportunities coupled with Government’s commitment to build capacity and improve the effectiveness of its governance systems suggest that investors can continue to enjoy adequate returns for commensurating risks.

As Trinidad and Tobago develops, the emphasis is not only on investment as a creator of employment, generator of revenue and other tangible outputs. There is a more focussed approach on intangible deliverables and outcomes to improve the quality of life of citizens. 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.

To this extent, the incentive regime is shifting focus from broad based tax holidays to sector specific measures. Notwithstanding, the focus is now extended to include niche industries, particularly those in the service sector such as the creative and cultural industries and the sub-sectors of fashion, music and film.

Inward (foreign direct) investment along with domestic and outward investment takes on even greater significance as the country strives to achieve a people-centered development that is sustainable.

The Government of the Republic of Trinidad and Tobago is committed to promote the sustainable development of the country and has identified seven (7) pillars for development, as follows:

People-Centred Development – We need everyone and all can contribute;

Poverty Eradication and Social Justice – Preference for poor and disadvantaged;

National and Personal Security – Human security for peace and prosperity;

Information and Communication Technologies – Connecting T&T and building the new economy;

A More Diversified, Knowledge Intensive Economy – Building on the native genius of our people;

Good Governance – People participation; and

Foreign Policy – Securing our place in the world.

Investment, as a medium for development falls within the ambit of the 4th and 5th Pillars, “Information and Communication Technologies – Connecting T&T and building the new economy” and “A more diversified, knowledge intensive economy – building on the native genius of our people", respectively. These objectives speak to the need to diversify the economy and the recent global crisis emphasizes the need for accelerated diversification. The aim is to be knowledge-driven, using technologies and research and development to create wealth by being innovative and entrepreneurial, while at the same time remaining people oriented.

Investment therefore needs to be linked to entrepreneurship and education to create information based knowledge and creative industries. To attract investment, the enabling environment must be optimal, sectors must be targeted and a culture of research and innovation along with entrepreneurship must be engendered. The institutional framework must be implemented and planning is critical, if the objective of sustainable development is to be realised.

The Ministry of Trade and Industry’s (MTI’s) primary responsibility is to generate economic growth by promoting and developing trade and trade-related activities, driving industrial diversification and investment particularly in the non-energy manufacturing and services sectors.

In fulfilment of its mandate, the MTI as an implementing arm of Government will continue to demonstrate the Government’s commitment in providing an efficient and friendly investment environment in an attempt to attract both local and foreign investors.