As Trinidad and Tobago seeks to boost the output and employment of its non-oil sector, one of the regions the Ministries of Trade and Foreign Affairs should be targeting for serious expansion is our Latin American neighbours to the east in Central America.
Last week, the Ministry of Foreign Affairs published a press release announcing the successful conclusion of a partial-scope agreement between this country and the Republic of Panama, one of Central America’s fastest-growing economies as a result of the huge investment and construction activity resulting from the Panama Canal expansion project.
Last week, the Ministry of Foreign Affairs published a press release announcing the successful conclusion of a partial-scope agreement between this country and the Republic of Panama, one of Central America’s fastest-growing economies as a result of the huge investment and construction activity resulting from the Panama Canal expansion project.
According to the ministry, after the agreement with Panama is ratified by Cabinet and Caricom’s Council for Trade and Economic Development (COTED), “Trinidad and Tobago’s manufacturers/exporters will benefit from reduced tariffs and greater market access for their products such as: aerated beverages, asphalt, bitumen, lubricants, blocks, tiles, aromatic bitters, agricultural products, and apparel.” The release indicated that chapters on services and investment have been included in the partial-scope agreement and will be expanded in the near future.
The fact that this agreement was concluded after only three rounds of negotiations, which started on January 25 and ended on June 3, is testament to willingness of both sides to expand trading possibilities and to the dedication of the lead negotiators, Ambassador Extraordinaire and Plenipotentiary for Trade and Industry, Mervyn Assam and his Panamanian counterpart, Diana Salazar, Director of Negotiations, Ministry of Trade and Industry.
The statement from the Foreign Ministry also indicated that T&T “intends to negotiate other agreements with countries of Central America, including Guatemala and El Salvador, to fulfil Government’s policy objectives of expanding South/South dialogue and greater engagement of our Latin American partners, whose gross domestic product exceed US$900 billion.”
In terms of accessing the Central American market, T&T has some distinct advantages.
A full free trade agreement between Caricom and Costa Rica was signed in 2006 and T&T has had an embassy in Costa Rica for several years led by the extremely capable career diplomat, Sandra Honore.
Ms Honore was part of a successful 21-member trade mission to Guatemala, which was led by Minister of Trade Stephen Cadiz.
In terms of developing trading links with Central American countries in general, and Guatemala in particular, T&T is fortunate to have two private sector leaders who are well placed and have an interest in developing closer ties. Both the president of the T&T Chamber of Industry and Commerce, Andrew Sabga and the president of the T&T Manufacturers Association, Dominic Hadeed, were part of the 21-person delegation that visited Guatemala.
Both men would have been impressed by the warmth and graciousness of the welcome they received from their Guatemalan hosts—up to and including the country’s outgoing President, Alvaro Colom Caballeros.
Both Mr Sabga and Mr Hadeed, who were elected within days of each other, are first-time leaders of their respective organisations and both are bubbling with new ideas for expanding the reach of local business and bring to their respective private sector organisations strong backgrounds in developing new partnerships and entering new markets.
Mr Hadeed, in particular, knows the Guatemalan market well, having established a partnership with soft drink producer Cabcorp, one of the largest companies in Central America, with sales approaching US$500 million.
In terms of the way forward, a comment by then secretary general of Caricom, Edwin Carrington, at an October 2010 conference entitled “Connecting the Caribbean and Central America: Exploring and Seizing New Opportunities” may be instructive.
Mr Carrington, who now serves the T&T Government as its ambassador to Caricom, pointed out that the accession clause to the Caricom/Costa Rica free trade agreement allows for other Central American countries to accede to it.
While Mr Carrington’s appointment has been questioned by some regional commentators, perhaps Prime Minister Kamla Persad-Bissessar had the foresight to envision a diplomatic role in driving the free trade agenda between the region and Central America for a man who spent 18 years at the helm of Caricom.
While the partial-scope approach spearheaded by Ambassador Assam is obviously quicker and less likely to get entangled in Caricom politics, there is significant merit in the idea of T&T championing a Caricom free trade agreement with all of Central America.
We would recommend that Mr Carrington and Mr Assam sit down and discuss the merits and demerits of both approaches soon and come up with a common position that would redound to the national interest of T&T’s manufacturing and services sectors, which should be anxious to explore and capture new markets.
The fact that this agreement was concluded after only three rounds of negotiations, which started on January 25 and ended on June 3, is testament to willingness of both sides to expand trading possibilities and to the dedication of the lead negotiators, Ambassador Extraordinaire and Plenipotentiary for Trade and Industry, Mervyn Assam and his Panamanian counterpart, Diana Salazar, Director of Negotiations, Ministry of Trade and Industry.
The statement from the Foreign Ministry also indicated that T&T “intends to negotiate other agreements with countries of Central America, including Guatemala and El Salvador, to fulfil Government’s policy objectives of expanding South/South dialogue and greater engagement of our Latin American partners, whose gross domestic product exceed US$900 billion.”
In terms of accessing the Central American market, T&T has some distinct advantages.
A full free trade agreement between Caricom and Costa Rica was signed in 2006 and T&T has had an embassy in Costa Rica for several years led by the extremely capable career diplomat, Sandra Honore.
Ms Honore was part of a successful 21-member trade mission to Guatemala, which was led by Minister of Trade Stephen Cadiz.
In terms of developing trading links with Central American countries in general, and Guatemala in particular, T&T is fortunate to have two private sector leaders who are well placed and have an interest in developing closer ties. Both the president of the T&T Chamber of Industry and Commerce, Andrew Sabga and the president of the T&T Manufacturers Association, Dominic Hadeed, were part of the 21-person delegation that visited Guatemala.
Both men would have been impressed by the warmth and graciousness of the welcome they received from their Guatemalan hosts—up to and including the country’s outgoing President, Alvaro Colom Caballeros.
Both Mr Sabga and Mr Hadeed, who were elected within days of each other, are first-time leaders of their respective organisations and both are bubbling with new ideas for expanding the reach of local business and bring to their respective private sector organisations strong backgrounds in developing new partnerships and entering new markets.
Mr Hadeed, in particular, knows the Guatemalan market well, having established a partnership with soft drink producer Cabcorp, one of the largest companies in Central America, with sales approaching US$500 million.
In terms of the way forward, a comment by then secretary general of Caricom, Edwin Carrington, at an October 2010 conference entitled “Connecting the Caribbean and Central America: Exploring and Seizing New Opportunities” may be instructive.
Mr Carrington, who now serves the T&T Government as its ambassador to Caricom, pointed out that the accession clause to the Caricom/Costa Rica free trade agreement allows for other Central American countries to accede to it.
While Mr Carrington’s appointment has been questioned by some regional commentators, perhaps Prime Minister Kamla Persad-Bissessar had the foresight to envision a diplomatic role in driving the free trade agenda between the region and Central America for a man who spent 18 years at the helm of Caricom.
While the partial-scope approach spearheaded by Ambassador Assam is obviously quicker and less likely to get entangled in Caricom politics, there is significant merit in the idea of T&T championing a Caricom free trade agreement with all of Central America.
We would recommend that Mr Carrington and Mr Assam sit down and discuss the merits and demerits of both approaches soon and come up with a common position that would redound to the national interest of T&T’s manufacturing and services sectors, which should be anxious to explore and capture new markets.
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