VZCZCXRO0663
PP RUEHGR
DE RUEHSP #0884/01 2061433
ZNR UUUUU ZZH
P 251433Z JUL 06
FM AMEMBASSY PORT OF SPAIN
TO RUEHC/SECSTATE WASHDC PRIORITY 7144
INFO RUCNCOM/EC CARICOM COLLECTIVE
RUEHRC/AMEMBASSY ATO CARIBBEAN
RUEAYVF/FAA MIAMI ARTCC MIAMI FL

UNCLAS SECTION 01 OF 02 PORT OF SPAIN 000884 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAGR EAIR EIND KCOR TD
SUBJECT: TRINIDAD ECONOMIC HIGHLIGHTS  JULY, PART 1 
 
 
The following were notable economic issues in T&T 
during the first half of July: 
 
(1) Caribbean Star/Sun expanding operations 
(2) Energy minister lauds chemical facilities 
(3) Agriculture minister calls for change 
(4) NGO ranks T&T on economic freedom 
 
--------------------------------------------- ------- 
¶1. Caribbean Star/Sun expanding operations in T&T 
--------------------------------------------- ------- 
 
To better support an expansion in service from 
Trinidad, Caribbean Star Airlines has established a 
new crew base and maintenance facility at Piarco 
Airport in Port of Spain.  The new crew base will 
enable the airline to position twoto-three aircraft 
t 
full time at Piarco Airport (POS).  In April, 
Caribbean Sun, Caribbean Stars sister carrier, 
launched daily flights between Trinidad and Antigua. 
The route proved so successful that Caribbean Star 
added new flights as well.  Further enhancing its Port 
of Spain operation, Caribbean Star will resume daily 
service between Trinidad and Guyana, a route 
previously flown from 2002 to 2004.  Both Caribbean 
Star and Caribbean Sun offer daily service between 
Trinidad and islands throughout the region.  Caribbean 
Star inaugurated service to Trinidad in 2000, while 
its flights to Tobago started in 2002.  Caribbean Sun 
flights to Trinidad began in February 2006.  COMMENT: 
the expansion of Caribbean Sun to T&T has effectively 
opened up USAir service via San Juan to Trinidad. 
USAir has alliances with the GoCaribbean Network, 
which includes Caribbean Sun and Caribbean Star.  End 
comment. 
 
--------------------------------------------- -------- 
¶2. Energy minister lauds chemical facilities 
s 
--------------------------------------------- -------- 
In statements made in Parliament earlier this month, 
Energy Minister Lenny Saith said that T&T would only 
get wealthier in the future with the investment of 
US$1.564 billion for the establishment of an ethylene 
complex and a maleic anhydride processing facility. 
According to Saith, both projects will create over 
5,600 jobs during construction and a total of 540 
permanent positions.  He added that close to 6,000 
sustainable jobs would be generated through the 
stimulation of new businesses in a wide range of new 
downstream manufacturing activities.  The ethylene 
complex will be constructed on 250 acres of land yet 
to be identified, and would be done in three phases 
with construction scheduled to start in the last 
quarter of 2007.  The US$1.5 billion facility would be 
funded by equity (30 percent) and debt (70 percent). 
Meanwhile, ISEGEN (PTY) Ltd, a company incorporated in 
South Africa, will operate the maleic anhydride 
facility.  Maleic anhydride is an intermediate 
chemical widely used in the industries for food and 
beverage products, pharmaceuticals, resins, oil 
additives, detergents, and agricultural products.  In 
2005, ISEGEN and Phoenix Park Gas Processors of T&T 
(minority-owned by ConocoPhillips) signed a memorandum 
of understanding (MOU) for the US$64 million facility, 
with construction expected to begin in the third or 
fourth quarter of 2008. 
 
--------------------------------------------- ---- 
¶3. Agriculture minister calls for change 
--------------------------------------------- ---- 
Agriculture Minister Jarette Narine has called for 
more efficient use of the resources allocated to the 
agricultural sector.  Speaking at the opening of the 
2006 Farmers Forum on July 14th, Narine said that the 
Government had earmarked some 15,000 acres of land for 
further distribution to former Caroni (1975) 
employees, with a view to "reducing the price of 
food."  (NOTE: Caroni is the former government-owned 
sugar cane company, which closed down roughly five 
years ago.)  In addition, Narine announced that the 
GOTT plans to go into business with the private sector 
in large agricultural projects, targeted for specific 
industrial commodities, on some of the remaining 
Caroni lands.  The Minister elaborated on other 
endeavors being pursued to enhance efficiency in 
agriculture, such as the development of a database for 
crop forecasting and relief payments to food crop 
farmers as a means of improving documentation, which 
he went on to qualify as being crucial to the proper 
 
PORT OF SP 00000884  002 OF 002 
 
 
functioning of any business, including agriculture. 
 
----------------------------------------- 
¶4. Canadian institute ranks T&T on economic freedom 
----------------------------------------- 
Local media has publicized a report by the Fraser 
Institute of Canada on Economic Freedom of the World, 
which was issued in September 2005.  The Institute 
defines economic freedom as the freedom to engage in 
economic transactions without government interference 
but with government support of the institutions 
necessary for that freedom, including rule of law, 
sound money and open markets.  On a ten-point scale, 
Trinidad received a 6.8 rating in the 2005 report, 
ranking it 44th in the world.  The report is based on 
2003 data.  This is an improvement from the 1980 
figure of 5.1, when the first analysis was conducted. 
The 6.8 rating, however, marks a decrease from the T&T 
2001 rating of 7.1.  Posts review of the reports 
analysis on the contributing elements confirms that 
the main factor behind the decline was a loss of 
confidence in the legal system and a decline in the 
score for judicial independence.  Another trend 
identified by the report is the increase in the size 
of government.  Within the region, Jamaica was the 
only Caricom country to rank ahead of T&T.  COMMENT: 
Given the sharp increase in GOTT-owned companies and 
expenditures since 2004, coupled with the ongoing GOTT 
T 
attempt to remove the chief justice from office, we 
expect to see a worsening of the T&T ranking in the 
next edition of the Fraser Institute report. 
 
SWEENEY